So, your teenager just got their driver’s license — congratulations! And also… good luck. While they’re thrilled about their newfound freedom, you’re likely running through a mental checklist of everything you need to do to keep them safe on the road. One major item on that list? Adding them to your auto insurance policy.
It’s not the most exciting part of their driving journey (for either of you). But it’s a crucial step to ensure they’re covered in case of an accident. Here’s what you need to know as a parent before making the call to your insurance provider.
1. Do I Have to Add My Teen to My Auto Insurance?
Short answer: Yes.
Longer answer: In most cases, your auto insurance provider will require you to add any licensed driver living in your household to your policy. Even if your teen doesn’t have their own car and only borrows yours occasionally, they still need to be covered. Failing to do so could lead to big problems if they’re involved in an accident.
2. How Much Will It Cost?
Brace yourself — adding a teen driver to your policy can be expensive. Statistically, teen drivers are more likely to be involved in accidents, which makes them a higher risk for insurance companies. On average, adding a teen can increase your premium by 50% to 100%. Yikes.
But before you panic, there are ways to save money, which leads me to…
3. How Can I Lower My Insurance Costs?
Insurance companies recognize that not all teens are reckless drivers, so they offer discounts to help soften the blow. Here are a few ways to cut costs:
- Good Student Discount – Many insurers offer discounts for teens who maintain a B average or higher. If your teen is hitting the books, they might help you save money too!
- Driver’s Education Discount – Completing a state-approved driver’s ed course can lower insurance rates. Some companies even offer their own safe-driving programs with discounts attached.
- Safe Driving Apps – Some insurers offer apps that monitor driving behavior. If your teen proves they’re a cautious driver, you could score some savings.
- Bundling Policies – If you have multiple insurance policies (home, auto, life), bundling them with the same provider could get you a discount.
4. Should My Teen Have Their Own Policy?
It’s usually cheaper to add them to your existing policy rather than getting them their own. However, if your teen has their own car and you don’t want their risk affecting your insurance rates, a separate policy might be worth considering. Keep in mind that individual policies for teens tend to be pricey.
5. What If My Teen Goes to College Without a Car?
If your teen is heading to college more than 100 miles away and won’t be taking a car, let your insurer know! Some companies offer a “student away at school” discount, which can significantly lower your premium while keeping them covered for occasional driving when they’re home on break.
Ready to Add Your Teen? We Can Help!
Adding a teen driver to your policy doesn’t have to be overwhelming. At Avalue Insurance, we’ll walk you through your options, help you find discounts, and make sure your family is protected without breaking the bank. Give us a call today and let’s get your teen covered — so you can stress a little less while they hit the road!
Give us a call at 303-773-3332, info@avalueinsurance.com, or request a quote right here online!
