Insuring Your Child: When And How To Add Your Teen To Your Auto Policy

If your child has a driver's license, lives in your household, and drives a car registered to your home, they will need to be added to your car insurance policy. This is true whether or not they are over the age of 18, as anyone living in your household with access to your cars will need to be a listed driver on your car insurance.

If your child has their driver's license but doesn't plan on driving for the foreseeable future, you can likely opt to formally exclude them from your car insurance policy. You may need to sign a form with your insurance company confirming that your child will not drive any of your cars.

When to add your child to your car insurance policy

If your child has a driver's license and lives in your household, they will need to be added to your car insurance policy. This is true whether or not they are over the age of 18, as anyone living in your household with access to your cars will need to be a listed driver on your car insurance.

You should add your child to your car insurance policy when they pass their driving test. However, it is advised to notify your insurer when your teen gets their learner's permit, even though they won't need to be a named driver on your policy. This way, the insurance company is aware that you'll be adding your child to your insurance policy soon, so you can avoid any gaps between your child passing their test and being able to drive your vehicle legally.

There are some situations where you may not have to add a child to your car insurance. If your child has their driver's license but doesn't plan on driving for the foreseeable future, you can likely opt to formally exclude them from your car insurance policy. You may need to sign a form with your insurance company confirming that your child will not drive any of your cars. If they do get behind the wheel and get into an accident, your car insurance company will not cover the damages, and there could be other consequences, like policy cancellation.

Adding a child to your car insurance policy is usually easy and straightforward. Whether you add your child to an existing policy or include them as a driver when you're signing up for new coverage, the process is similar. Most insurance companies will let you add someone new to a policy either online, over the phone, or via the company's mobile app. When you're adding your driving-age child to a policy, you'll probably have to provide the following information about them:

• Their full name and date of birth
• Their Social Security and driver's license number
• Their primary vehicle (if it's different from one that's already insured)

Adding a child to your car insurance makes your insurance more expensive, but it's usually something your provider requires. Typically, all licensed drivers living in your house, including your children, must be listed on your car insurance policy (or be specifically excluded from coverage).

On average, adding your child to your car insurance costs $2,718 each year. If your child got their own policy, it would cost an average annual premium of $5,108. Getting your child their own car insurance policy is 47% more expensive and may also prove to be challenging. For instance, you'll need to co-sign the policy since all states have laws barring minors from legally binding themselves to contracts.

How much does it cost to add your child to your insurance?

Adding a child to your car insurance policy is usually easy and straightforward. However, it can be expensive. The cost of adding a child to your car insurance depends on several factors, including the child's age, gender, driving experience, and location.

Average Cost of Adding a Child to Car Insurance

On average, adding a child to your car insurance policy can cost around $2,718 per year, according to MoneyGeek. Policygenius estimates a higher average cost of $1,588 per year, while CarInsurance.com puts the figure at $3,726 per year. These estimates vary based on the age of the child, with younger drivers typically costing more to insure due to their lack of driving experience.

Factors Affecting the Cost of Adding a Child to Car Insurance

The cost of adding a child to your car insurance can vary depending on several factors:

• Age: The cost of insuring a child decreases as they get older and gain more driving experience. According to CarInsurance.com, the average cost of adding a 16-year-old to a parent's policy is $4,200 per year, while the cost for a 19-year-old is $3,219.
• Gender: In most states, male teen drivers are more expensive to insure than female drivers due to higher accident rates. However, some states, like California, prohibit the use of gender in car insurance ratings.
• Driving Record: A child with a clean driving record may qualify for good driver discounts, which can help lower insurance costs.
• Student Status: Many insurance companies offer discounts for students who maintain good grades or complete driver's education programs. Additionally, if your child attends college away from home and does not have a car, you may be eligible for a "student away" discount.
• Type of Car: Insuring a safer, older vehicle for your child can be cheaper than insuring a new or sports car.
• Location: The cost of car insurance can vary by state due to differences in insurance regulations and rating calculations.

Alternatives to Adding a Child to Your Policy

If you are concerned about the cost of adding a child to your car insurance, there are a few alternatives to consider:

• Exclude the Child from Your Policy: If your child does not drive or only drives occasionally, you may be able to exclude them from your policy, which can result in lower premiums. However, this means they will not be covered if they do drive and get into an accident.
• Increase Deductibles: Increasing your collision and comprehensive deductibles can lower your annual premiums, but it will also increase your out-of-pocket expenses in the event of a claim.
• Shop Around for Quotes: Compare rates from multiple insurance providers to find the most affordable option for your family.

Do you have to add your child to your car insurance?

As a parent, you may be excited and nervous about your child getting their driver's license. But before they start driving, you need to consider adding them to your car insurance policy. Here's a guide to help you understand whether you need to add your child to your car insurance and what to consider when making that decision.

Yes, in most cases, you are legally required to add your child to your car insurance policy once they get their driver's license and live in your household. This is because insurance providers require you to list all licensed drivers residing in your home on your auto insurance policy. Driving without insurance is illegal in most states, and your child needs to be insured to comply with the law.

However, if your child has a driver's license but doesn't plan on driving, you may be able to formally exclude them from your car insurance policy. This would typically involve signing a form confirming that your child will not drive any of your vehicles.

Benefits of Adding Your Child to Your Car Insurance

While adding your child to your car insurance will likely result in higher premiums, there are some benefits to consider:

• Lower premiums for your child: It is generally more affordable for your child to stay on your policy than to purchase their own insurance, especially if they are under 18.
• Qualifying for new discounts: You may be eligible for various car insurance discounts for teen drivers, such as good student discounts, distant student discounts, and teen driving programs.
• Simplified policy management: Having all household members on one policy can make it easier to manage payments, renewals, and claims.
• Establishing insurance history: Keeping your child continuously covered will help them build an insurance history, which can lead to better rates in the future.

Costs of Adding Your Child to Your Car Insurance

Adding a teen driver to your car insurance policy will likely result in higher premiums. This is primarily due to their lack of driving experience and the higher risk associated with young drivers. According to the Insurance Information Institute, adding a young driver can increase your premium by 50% to 100%.

There is no specific age when your child must get their own car insurance policy. As long as they live with you and you have an insurable interest in the vehicle they drive, you can keep them on your policy. However, if any of the following factors apply, it may be time for your child to have their own policy:

• They are married or have children.
• They are the sole owner of the vehicle they drive and do not live in your household.
• They are financially independent.

How to Add Your Child to Your Car Insurance

Adding your child to your car insurance policy is usually a straightforward process:

• Review your current coverage to understand what additional coverage you may need.
• Gather your teen's details, including their driver's license number and issuance date, and any relevant driving history.
• Contact your insurance company to inform them that you are adding a new driver and provide the necessary information. Don't forget to ask about available discounts.
• Discuss with your insurer which car your teen will drive primarily, as this can affect the cost of insurance coverage.
• Explore coverage options with your insurer, considering factors such as the car they're driving, their driving habits, and your budget.
• Request a quote to understand how your premium may change and make any necessary adjustments.
• Finalize the changes to your policy and receive updated insurance cards and policy documents.

In conclusion, while adding your child to your car insurance can be costly, it is a necessary step to ensure they are legally allowed to drive and are adequately covered in case of an accident. Remember to shop around and compare rates from different insurance providers to find the best coverage for your family.

When should your child get their own car insurance?

When your child gets their own car insurance depends on several factors. Firstly, it's important to note that if your child has their driver's license and lives with you, they need to be added to your car insurance policy. This is a legal requirement, and insurance providers will mandate this.

There is no set age at which your child must get their own car insurance, and it is possible to keep them on your policy indefinitely, as long as they live at your address. However, there are some indicators that it might be time for your child to take on their own policy:

• They have moved out and have their own car.
• They are married or have children.
• They are financially independent.

Even if your child has moved out, it is still possible to keep them on your insurance policy, especially if they are a student. Some insurance providers offer discounted rates for college-age children who are away from home and not using the family car regularly.

If your child is still financially dependent on you, it is worth noting that adding them to your policy is usually the cheapest option. Teenagers will get a more affordable rate if listed as a driver on a parent's policy than they would on their own. Plus, you may be eligible for discounts that your child might not qualify for, such as bundling with homeowner's coverage.

How to lower costs when adding a child to your car insurance

Adding a child to your car insurance will increase your rates, but there are several ways to lower the costs. Here are some strategies to help reduce the financial burden:

Take Advantage of Student Discounts

Insurance providers often offer discounts for students who maintain good grades, usually a B average or above. This not only incentivises academic excellence but also helps to lower insurance costs for families. If your child's college is far away and they don't have a car, you may also be eligible for a "student away" discount.

Enrol Them in a Driving Class

Some insurance companies offer discounts for young drivers who complete a driving class or defensive driving course. This not only improves your child's driving skills but also helps to reduce insurance costs.

Choose the Right Car

Opting for a safer, older vehicle for your child can help lower premiums. Sports cars or new models may increase your rates, while vehicles with excellent safety ratings often come with insurance discounts.

Increase Deductibles

Increasing your collision and comprehensive deductibles can lead to lower annual premiums. However, keep in mind that this also means higher out-of-pocket expenses if a claim is made.

Consider Telematics or Tracking Devices

Some insurers offer discounts for using telematics or tracking devices in cars. These devices monitor driving habits, and safe driving can result in lower premiums.

Look for Limited-Usage Discounts

If your child's driving is mostly limited to weekends or certain days, ask about limited-use discounts. This can help reduce the overall cost of insurance.

Bundle Policies and Stick to One Insurer

If you have multiple insurance policies, such as home, boat, or multiple cars, consider bundling them with a single insurer. This can often result in cost savings. Additionally, staying with your current insurer for a longer period may qualify you for loyalty discounts.

Shop Around and Compare Rates

When adding a young driver to your policy, it's a good idea to compare rates from different insurance providers. Rates can vary significantly between companies, so shopping around can help you find the most cost-effective option.

Encourage Safe Driving

Educate your child about the importance of safe driving and maintaining a clean driving record. Accidents or traffic violations can increase insurance premiums.

Ask About Other Discounts

Different insurance companies may offer unique discounts or promotions. It's worth asking your agent or insurer about any additional ways to lower your premium.

Reevaluate Your Coverage

If your child's car is older, consider whether you need comprehensive or collision coverage. Removing these coverages can lower your insurance costs.

Frequently asked questions