Should I add my teenager to my auto insurance policy?
You might wonder whether you should add your teenager to your auto insurance policy. You must add a teen to your insurance if they live with you and drive your vehicles, but it's 45% cheaper than teen auto insurance alone. Below, we'll overview whether you need to add a child to car insurance with a permit.
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Laura D. Adams
Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Insurance & Finance Analyst
UPDATED: Nov 27, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 27, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- You’ll need to add your child to auto insurance if they can drive and live with you
- While adding a teenager to your auto insurance policy will cause rates to go up, it’s much cheaper than a separate teen car insurance policy
- When adding a teen to car insurance, see if your company offers any discounts for teens, such as a good student or usage-based discount
Once your child turns 16, you might wonder whether it’s time to add your teenager to your auto insurance policy. While your rates will increase, you’ll get cheap auto insurance if you add a teen to your insurance rather than getting a separate policy. You may even qualify for a multi-vehicle auto insurance discount for insuring more than one car if you buy your teen a vehicle.
Below, we’ll help you learn more about whether you need to add a child to your car insurance with a permit and what happens if you don’t add your teenager to your car insurance. To find the best auto insurance coverage for your teen driver, enter your ZIP code above and to compare quotes from the best auto insurance companies in your area.
Deciding Whether You Should Add Your Teenager to Your Auto Insurance Policy
So, should I add my teen driver to my auto insurance policy?
Yes, it’s usually best to include your teenager on your policy rather than purchase coverage from a different company. The top providers offer significant savings to auto insurance policyholders who bundle multiple policies, and you can see a discount of up to 45% by adding a teen to your auto policy. Read more about how to save money by bundling insurance policies.
Teens have high insurance rates, so adding them to your policy is the best way to maximize savings. In addition, it's easier to manage your policy and pay bills when you add a teen to your insurance rather than get separate coverage.Schimri Yoyo Licensed Agent & Financial Advisor
Some reasons why auto insurance costs more for young drivers is because of their lack of driving experience and higher likelihood of driving distracted.
Take a look at how much you might pay for teen auto insurance coverage by itself:
| Insurance Company | 16-Year-Old Male | 16-Year-Old Female | 18-Year-Old Male | 18-Year-Old Female |
|---|---|---|---|---|
| AAA | $465 | $445 | $378 | $328 |
| Allstate | $638 | $608 | $519 | $448 |
| American Family | $509 | $414 | $414 | $305 |
| Farmers | $773 | $810 | $629 | $597 |
| Geico | $312 | $298 | $254 | $220 |
| Hartford | $577 | $552 | $469 | $407 |
| Liberty Mutual | $785 | $723 | $626 | $522 |
| Nationwide | $476 | $411 | $387 | $303 |
| Progressive | $814 | $801 | $662 | $591 |
| State Farm | $349 | $311 | $284 | $229 |
| Travelers | $910 | $719 | $740 | $530 |
| U.S. Average | $618 | $566 | $501 | $416 |
As you can see, since teen drivers are inexperienced, they have higher rates. So, it’s always best to add teen drivers to a parent’s policy.
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Understanding if You Have to Add Your Child to Car Insurance
While it’s usually best to add a teen to your insurance, you might wonder if you have to add them to your car insurance and what happens if you don’t. Your child must be on your auto insurance policy if they live in the same household and have access to your vehicles.
So, when is the best time to add your teen to your car insurance policy? Generally, you’ll want to add them when they get their permit or driver’s license.
What happens if I don’t add my teenager to my car insurance? Any claims involving your teen could be denied if you don’t add them to your policy or secure coverage elsewhere. Compare rates from the best auto insurance companies for teens to find the lowest cost.
Other Ways to Save on Teen Auto Insurance Rates
If adding a teen to your auto policy isn’t enough to get cheap rates, there are various other factors that affect auto insurance rates, such as discounts. Here are some other ways you can save on car insurance for a teen:
- Add them to your policy. While you don’t have to add your teenager to your own policy, you’d have to get coverage elsewhere, which could be more expensive. Consider adding your child to your auto insurance for the lowest rates.
- Ensure they get good grades. Most top providers offer a good student auto insurance discount to students with a 3.0 GPA (B average) or higher. So, you might save on teen auto insurance if your child has good grades.
- Have them take a driver’s education course. You could also have your teen take a driver’s education course to save on car insurance. Some companies will give teens a driver’s ed auto insurance discount for completion.
- Enroll them in usage-based insurance. Usage-based auto insurance monitors your driving habits and offers a discount based on how well you drive. So, you could get cheap car insurance for a teen if your teen is a safe driver.
- Qualify for discounts. There are various other teen auto insurance discounts to help them save on coverage, such as an anti-theft auto insurance discount or low mileage auto insurance discount.
Don’t feel bound to stay with your insurance company if they won’t give you a good rate to add your teenager to your policy. In most cases, they’ll work with you. They may even offer the same auto insurance discounts you get for bundling insurance policies with them.
However, if your insurance company charges outrageous rates for your coverage because you have a teenage driver, don’t be afraid to shop around for the best auto insurance for teens.
More About Adding a Teen to Your Auto Policy
If you’re helping a teen driver get their first license, adding a teen to your auto insurance policy is the best route to save on coverage, as you could reduce your rates by up to 45%.
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— AutoInsurance.org (@AutoInsurance) June 26, 2023
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Frequently Asked Questions
Should I add my teenager to my policy?
Adding your teenager to your auto insurance policy is generally necessary when they start driving. However, it can significantly increase your insurance rates, especially for high-risk drivers like teenagers. There are ways to minimize the impact, such as choosing the right car and discussing responsible driving habits with your teenager. Additionally, comparing quotes from different insurance providers may help you find a more cost-effective option.
How does age affect auto insurance rates for teenagers?
Teenagers, especially 16-year-olds, are considered high-risk drivers by insurance companies. This is primarily due to their lack of driving experience and higher likelihood of engaging in risky behaviors on the road. As a result, adding a teenager to your policy can lead to increased premiums.
Are there any discounts available for insuring a teenager?
Some insurance companies offer discounts for safety features in the teenager’s car, such as airbags and anti-lock brakes. Additionally, if you bundle your insurance policies with the same company, you may be eligible for discounts. It’s important to shop around and compare rates to find the best coverage at a cost-effective price.
What can I do to encourage responsible driving for my teenager?
Before your teenager starts driving, have an open and honest conversation with them about the responsibilities and potential consequences of driving. Emphasize the importance of safe driving practices, such as following traffic laws, avoiding distractions, and never driving under the influence. Make it clear that any increase in insurance rates caused by their actions will be their responsibility.
Can I switch insurance companies if mine charges high rates for teenage drivers?
Yes, you have the option to switch insurance companies if your current provider charges exorbitant rates for adding a teenage driver to your policy. It’s advisable to explore other insurance providers and obtain quotes from them. Comparing rates from multiple companies can help you find a better deal and acquire cost-effective coverage.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Laura D. Adams
Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Insurance & Finance Analyst
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.