Do I Have to Add my Teen to my Auto Insurance Policy
The question of whether to add a teen driver to an existing auto insurance policy is a very common one. All drivers, whether they have recently been licensed or not, must be insured. You can buy a separate policy for a teen driver, but the cost of coverage will be very expensive. Adding a teen to your auto insurance policy gives the young driver the protection he or she needs and is less expensive than buying a policy where the teen is the primary driver.
How Auto Insurance Companies Set Rates for Teen Drivers
Teens and young adults pay some of the highest rates for their auto insurance coverage of anyone one on the road. Auto insurance companies decide how much to charge drivers based on the level of risk they present for coverage purposes.
Teens are considered high risk when buying auto insurance coverage. Insurance companies know that they are more likely to be involved in accidents than drivers who have been licensed for a number of years. Teens are known for having a penchant for taking risks, and this trait extends to their behavior behind the wheel as well as in other aspects of their life. As a result, they are charged premium rates for their coverage.
Add a Teen Driver to an Existing Policy
The most economical choice for parents is to add the teen driver to an existing policy. If the teen lives with a grandparent, older sibling or another adult, he or she can be added to that person’s coverage. The young driver can stay on another person’s auto insurance coverage as long as he or she is living at home.
Shop Around Before Adding a Teen to an Auto Insurance Policy
A major change in circumstances, such as a new driver in the household, is a good time to review the auto insurance coverage currently in place. Taking stock is something that auto insurance consumers should do at least once a year to make sure that the type and level of protection they have in place is appropriate for their needs.
Rates can vary significantly between auto insurance companies, and setting aside some time to get quotes from different providers will reveal whether the current insurance company can offer the best rates or not.
The insurance company should be notified when a teen obtains his or her learner’s permit. Some companies will add the new driver at that point, while others wait until the teen has become licensed.
Some auto insurance providers offer discounts for student drivers. For example, a young person who has completed an approved driver’s education program can qualify for a break on his or her auto insurance rates. Students who are able to maintain a “B” average or higher can also quality for lower auto insurance rates, since companies recognize that young people who have the dedication to do well in school will likely show the same kind of maturity while operating a motor vehicle.
