Adding Your Child To Geico Auto Insurance: A Step-By-Step Guide

Adding a child to your GEICO auto insurance policy is a straightforward process, but it's important to understand the implications and costs involved. Firstly, it's essential to determine if your child needs to be added to your policy. If they are a minor, live in your household, and have a driver's license or learner's permit, they should be added to your GEICO auto insurance. Teen drivers, in particular, are considered high-risk due to their inexperience, resulting in higher insurance rates. GEICO, however, offers several discounts for teenage drivers, including safe driver, good student, and student away at school discounts. When adding your child, have their full name and driver's license number ready. While adding a child to your policy can increase your premium, it's a necessary step to ensure they are adequately covered in case of any accidents or incidents.

Teen drivers and insurance costs

Teen drivers are likely to be added to their parents' insurance policy, rather than getting their own. This is because it is cheaper to add a teen to a parent's policy than it is for the teen to get their own. However, this will still result in a significant increase in insurance costs.

Cost of adding a teen to a parent's insurance policy

The average cost of adding a teen to a parent's car insurance policy is $278 a month. This can almost double the rate a two-parent household pays for car insurance.

The exact amount that insurance will increase depends on several factors, including the state you live in, the age of the teen, and the driving history of the teen and their parents.

Cost of a teen getting their own insurance policy

The average cost of car insurance for a teen driver is $532 a month for their own policy.

Discounts

There are a number of discounts available for teens that can help to reduce insurance costs. These include:

• Safe driver discount
• Good student discount
• Student away at school discount
• Driver training discount
• Multi-car discount
• Multi-policy discount
• Safety features discount

Insurance costs decrease as teens get older

Car insurance is most expensive for teen drivers and then decreases as they get older. Rates level off between the age groups of 35 and 55, then rise slightly as senior drivers are seen as a bit riskier to insure.

Discounts for young drivers

Young drivers are considered high-risk and can be expensive to insure. However, there are several ways to secure discounts for young drivers to lower the cost of insurance. Here are some of the most common discounts for young drivers:

Good Student Discount

Full-time students who maintain good grades can often get reduced insurance rates. For example, Allstate offers a good student discount for unmarried drivers under 25 who have at least a B- average. Similarly, State Farm offers up to a 25% discount for full-time students with good grades, up to the age of 25 or their last year of school. GEICO also offers a good student discount, requiring at least a B average, and students can save up to 15% as long as they are full-time high school or college students.

Safe Driver Discount

Young drivers with a clean driving record can often get a discount on their insurance. GEICO, for instance, offers a safe driver discount for policyholders who complete state-approved defensive driving classes.

Driver Training Discount

Some insurance companies offer discounts for young drivers who complete approved driver's education courses. GEICO, State Farm, Allstate, and Travelers all offer premium discounts upon completion of required driver safety training courses.

Distant Student Discount

If a young driver attends college away from home and leaves their car behind, they may be eligible for a lower insurance rate. GEICO, for instance, offers savings for students who live at college at least 100 miles away and do not have a vehicle.

Telematics Discount

Telematics devices or apps monitor a young driver's driving habits and can lead to discounts. However, under some insurers, rates could also increase if the telematics device detects poor driving habits.

When to add a teen to your policy

When to add a teen to your GEICO auto insurance policy

As a parent, it is important to ensure your teen driver has the proper amount of car insurance coverage before they get behind the wheel. While the cost of insuring a teen can be high, GEICO offers various discounts and resources to help mitigate expenses and ensure comprehensive coverage for your teen. Here are some key points to consider when deciding when to add your teen to your GEICO auto insurance policy:

• State Laws and Insurance Guidelines: The rules for adding a teen driver to your policy vary depending on state laws and your insurance company's internal guidelines. In most states, you are required to add your teenager to your policy if they are a minor (under 18 years old) and live in your household. However, the specific age requirements may differ based on your state's laws. Contact your insurance provider or review your state's regulations to understand the applicable laws.
• Permits vs. Full Licenses: Some insurance companies allow parents to list a teen with a learner's permit on their policy at no additional charge until they become a fully licensed driver. This is because, during the permit stage, the teen must be supervised by a licensed driver over the age of 21, reducing the risk. However, other insurance companies may require you to add your teen and start paying premiums once they receive their permit. Contact your insurance provider to understand their specific guidelines.
• Cost Considerations: Insuring a teen driver can significantly increase your insurance premiums due to their lack of driving experience and higher accident rates. Adding a teen driver to your existing policy is typically more cost-effective than purchasing a separate policy for them. GEICO offers various discounts, such as the Good Student Discount and the Good Driver Discount, which can help offset the increased cost. It is recommended to get a quote for adding your teen to your policy and explore different insurance providers to find the best rates.
• Safety and Experience: It is important to emphasize safe driving habits and gradually build your teen's driving experience. GEICO's DriveEasy program offers discounts on car insurance premiums by monitoring and rewarding safe driving behaviour through the GEICO mobile app. Additionally, consider limiting your teen's access to the family vehicle until they gain more experience.
• Timing and Notification: Contact your insurance provider as soon as your teen starts driving, even during the learner period. While some companies may not require teens to be added until they have a full license, it is crucial to notify your insurer promptly to avoid any issues or coverage gaps. Insurance companies receive reports listing residents at your address and will be aware if you have a teenage driver.
• Compliance and Consequences: In all states except New Hampshire, all drivers must have insurance coverage when operating a vehicle. Failure to add your teen to your policy could result in coverage denial or increased premiums if they are in an accident. Insurance companies may consider it fraud or material misrepresentation if an unlicensed or unlisted teen driver is involved in an accident.

How to add a teen to your policy

Adding a teen driver to your GEICO insurance policy is a straightforward process, but it's important to understand the implications and costs involved. Here is a step-by-step guide on how to add a teen to your GEICO policy:

• Understand the Requirements: Before adding your teen, it's essential to know the requirements. Teen drivers who have a learner's permit or a valid driver's license and live in your household need to be added to your policy. This ensures compliance with state laws and adequate coverage in case of any accidents.
• Contact GEICO: Reach out to GEICO to inform them about your intention to add a teen driver to your policy. You can do this by logging into your GEICO account or mobile app, or by calling their customer support at 1-800-841-3000. They will guide you through the process and answer any questions you may have.
• Provide Necessary Information: When adding your teen to the policy, make sure you have the following information ready: their full name as it appears on their driver's license, and their driver's license number.
• Consider Additional Costs: Adding a teen driver to your policy will likely result in higher premiums. According to estimates, it costs about $1,538 per year to add a teenager to GEICO car insurance. However, the exact amount will depend on factors such as your state, the age of the teen, and your driving history. Be prepared for this additional cost and consider ways to mitigate the increase, such as taking advantage of discounts.
• Explore Discount Options: GEICO offers several discounts that can help offset the cost of adding a teen driver. These include the safe driver discount, good student discount (for students with a B average or above), student away at school discount, and driver training discount. Ask GEICO about the eligibility criteria and how to apply for these discounts.
• Monitor Driving Behavior: Once your teen is added to your policy, their driving habits will also impact your premiums. Encourage and insist on safe driving practices to keep your insurance rates as low as possible. Consider enrolling your teen in a pay-as-you-drive (PAYD) telematics program, which offers discounts for good driving behavior.
• Regularly Shop for Quotes: It's a good idea to shop for insurance quotes at least once a year. This ensures that you're getting the best rates and allows you to explore new discounts that may become available. Remember to compare quotes from different companies to find the most cost-effective option.

By following these steps, you can successfully add a teen driver to your GEICO policy and manage the associated costs effectively. Remember to be proactive and reach out to GEICO with any questions or concerns you may have along the way.

The risks of not adding your teen to your policy

Teen drivers are among the most dangerous on the road, with higher accident rates and more claims filed compared to the average driver. As a result, not adding your teen to your policy can have serious consequences.

Firstly, it is illegal for your teen to drive without insurance. In all states except New Hampshire, all drivers must have insurance coverage when they are behind the wheel. If your teen is in an accident without insurance, you could face serious legal consequences.

Secondly, if your teen is not added to your policy and gets into an accident, your insurance company could deny coverage, claiming that you committed fraud by not disclosing a licensed driver. Alternatively, your insurer may cover the accident but then require you to pay all the premiums that should have been paid since your child was licensed, which could result in a large, unexpected bill.

Thirdly, by not adding your teen to your policy, you are missing out on potential discounts. Many insurers offer discounts for good grades, safe driving, and participation in approved driving education courses. These discounts can help offset the cost of adding a teen driver to your policy.

Finally, not adding your teen to your policy could result in higher rates in the long run. Insurance companies take into account the driving history and experience of all drivers on the policy when calculating premiums. If your teen is not listed on the policy and gets into an accident, this could be considered a violation, resulting in higher rates for everyone on the policy.

In conclusion, while adding a teen driver to your policy can be costly, the risks of not doing so are significant. Not only are you breaking the law, but you are also risking denial of coverage, unexpected bills, and higher rates in the future. It is always best to speak to your insurance company and ensure your teen is properly covered.

Frequently asked questions