If you’re anxious about your child reaching the legal driving age, you’re not alone. Teen drivers need to secure car insurance from the moment they sit behind the wheel, even when driving with a learner’s permit. Once they obtain their driver’s license, you face the question of adding your child to your current car insurance or purchasing a new one just for them.
Is insurance mandatory for a teen driver?
The age at which a teen can obtain a learner’s permit varies from state to state, but current best practices suggest issuing learner’s permits at age 16 and intermediate licenses at age 17. State laws and insurance company guidelines differ, but in some cases, a parent’s car insurance may extend to cover a teen driver with a learner’s permit.
Insurance for teen drivers is crucial. According to the Insurance Institute for Highway Safety, teen drivers are four times more likely to be involved in car accidents than drivers in their twenties. Reasons for teen accidents include improper driving, distractions while driving with passengers, losing control of the vehicle at high speeds, driving at night, and speeding.
Younger drivers need to gain experience before sitting behind the wheel on their own. Every state in the U.S. has adopted some aspects of graduated licensing, allowing teens to practice driving under supervision before obtaining their driver’s licenses.
“You generally need to have a licensed driver in the car with you if you have a learner’s permit,” said Jake Mathenia, an automobile service specialist at Steve Womack Insurance Agency, a State Farm agency in Memphis, Tennessee, in a phone call with The Balance.
Before allowing your child to drive, even with you in the vehicle, talk to your insurance agent to find out if your policy covers a driver with a learner’s permit. “We like to have them on the insurance policy, in case an accident occurs, so they are covered as an insured driver,” said Mathenia.
Note: All drivers, including teens with learner’s permits, must have the required minimum levels of auto insurance. These requirements vary from state to state, so check with your state’s insurance commissioner website.
Adding a driver to your policy
While state laws and insurance company guidelines vary, parents should consult their insurance agent to find out if they are required to add a teen driver to their policy while driving with a learner’s permit or after the teen has obtained their license. Some states do not require policyholders to list their children on their auto policies until the child gets their driver’s license.
Typically, the process of adding a driver to your auto policy is easy and straightforward. “All we need is their driver’s license number and their demographic information, and we add them to our database and include them on the policy,” according to Mathenia.
Note: When your child applies for their license, they will have to take a driving test. If your child tests in your vehicle, most states require them to provide proof of registration and proof of insurance.
Costs of adding your child to your car insurance policy
According to the American Institute for Highway Safety, young drivers statistically cause more fatal accidents compared to more experienced drivers, with females exhibiting a higher death rate than males. In 2020, nearly 1,900 male drivers aged 16 to 19 died in traffic accidents, compared to over 600 females in the same age group. In the same year, 891 males aged 45 to 49 died in traffic accidents, compared to 442 females in the same age group.
Forms of
Teen drivers pose higher risks for insurance companies, so a rise in car insurance premiums is expected after adding a young driver to your policy. To determine the potential increase in premiums after adding a teen driver to your policy, use The Balance’s premium search tool from the California Department of Insurance.
Location Coverage Listed Drivers Driving Record Car Premiums
Lakewood, California Standard Married Young No Violations Toyota Camry $3680
Lakewood, California Standard Married Couple with Teen No Violations Toyota Camry $5870
(The comparison above is for illustrative purposes only and does not reflect the rates you will pay in your area.)
Factors Affecting Car Insurance Rates
Many factors affect car insurance rates, even if you do not have a teen driver listed on your policy.
- Age: Adult drivers with years of driving experience typically pay less for car insurance than teens and young adults in their twenties.
- Coverages: Adding coverages to your policy increases financial protection but also raises premiums.
- Deductible: Policies with higher deductibles tend to have lower premiums than similar policies with lower deductibles.
- Driving Record: Drivers with accidents or traffic violations on their record typically pay higher premiums.
- Location: Insurers often charge higher premiums for vehicles in areas with high theft rates or in areas prone to severe weather conditions.
- Type of Vehicle: Sports cars, luxury cars, and SUVs tend to have higher insurance premiums.
- Safety and Anti-theft Devices: Many insurers offer discounts for vehicles equipped with safety features like anti-lock brakes and anti-theft devices.
Note: Some insurance companies also use your credit history when determining car insurance rates. Improving your credit may help lower insurance costs.
How to Get a Good Deal on Teen Car Insurance
Parents often feel shocked after adding their children to their car insurance policies. Most major insurance companies offer discounts – some designed for young drivers – that can offset premium increases.
- Bundling Discounts: Some companies offer a discount when bundling car insurance with home or renter’s insurance policies.
- Defensive Driving Discounts: Teens who take
Source: https://www.thebalancemoney.com/how-to-add-your-child-to-your-car-insurance-5536824
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