Should I Put My Teen Driver on My Policy?

When parents are faced with their teens turning 16 and getting their licenses, the biggest question is: should I put my teen on my car insurance policy or should I get her her own?

The answer will depend on how your insurance company charges for teen drivers. In most cases, it is cheaper to add a teen driver to your policy than to get her a separate policy. By adding her to your policy you are effectively saying that you will bear the financial burden should she get into an accident and incurs out of pocket expenses. Insurance companies tend to look at teen drivers with their own policies as being unlikely to be able to afford those expenses, and so those policies tend to be more expensive.

Some insurance companies automatically consider anyone who lives in your house and is licensed to drive as being covered by your car insurance policy. Check your policy documents or call your car insurance agent to be clear on whether you need to list your teen driver on your policy or whether she is automatically covered.

Some car insurance companies charge more to have your teen on your policy, although this is not often the case. Again, check with your company to see what its policies are to make sure you comply with their rules. It may be a good idea to get a quote for car insurance from other companies that make it more affordable to insure a teen.

If you add your teen to your policy, expect your premium to go up. Teens are the most costly group to insure. However, adding more people to your policy may make you eligible for multiple driver discounts, so that may help offset the cost of your teen coming on to your policy.

If your teen is a good student, check to see if she qualifies for a Good Student discount with your car insurance company. This can also help you save on your teen’s car insurance.