When your child approaches driving age, you’ve likely got a lot to worry about. Making sure your teen is properly insured shouldn’t be one of them. Let’s run through the process of adding a teen driver to your policy so you can breathe a little easier knowing your teenager is protected when she’s behind the wheel.
Adding a teen driver to your policy
It’s a fact–teens are expensive. Adding a teenage driver to your insurance policy will raise your rates. According to CarInsurance.com rate data, on average, your insurance rate will increase 130% after you add a teen, which equates to an additional $2,000 each year.
Teenage drivers cost more to insure because they tend to be among the most dangerous, with a higher accident rate and more claims files than the average driver. Here are some tips to take a little bit of the sting out of adding your teen to your driver’s insurance policy:
- Begin the insurance process before your teen driver gets a learner’s permit. Talk to your independent insurance agent about the cost once your teen is licensed.
- Save money by adding a teen driver to your policy rather than covering him with his own policy.
- Be sure to contact your insurance company once your teen is licensed so your child is added to the policy.
- If you can, add your teen driver as the primary driver for the cheapest vehicle listed on your policy.
- The rates insurers charge for adding a teen to your policy can vary quite a bit. Take the time to compare rates from at least 3 companies to find the lowest price.
Saving on teen car insurance
Ask your insurance agent about discounts. Depending on your company, you may receive a discount for students who earn high grades in school, those who successfully complete a driver’s ed course, students who live away from home (like in college) and more.
- Most insurers offer some version of a “good student” discount to teens who have at least a “B” average. Oftentimes this discount can be up to 20%!
- Check to see if your insurer offers a discount for teens who complete a defensive driving course. This can help your teen learn to react safely in dangerous driving situations and hopefully lead to fewer accidents. The discount will vary based on the type of course completed and your insurer, but expect around 10% off your rates.
- If your vehicle has certain safety features, you may be eligible for a discount. These features include anti-lock brakes (ABS), anti-theft devices, lane departure warning, collision preparation systems and adaptive cruise control. Ask your agent what features can garner a discount for your policy.
- College students who don’t plan to take a car with them and will be living more than 100 miles away from home should get you a discount on your auto insurance. Sometimes called the “student away” discount, this rate reduction is because the teen won’t be a regular operator of the vehicle. Make sure to notify your insurer when your teen heads off to school and ask for that price adjustment.
- Lastly, teens can work toward a good-driver discount. If your teen can stay ticket and accident free for three years, he or she may qualify for a good driver discount and save you up to 25%!