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Should I Add My Teen Driver to My Car Insurance Policy?

A teenage daughter driving next to her father thanks to teen auto insurance.

Your son or daughter’s preferred mode of transportation seemed to change so fast; just a few years ago, it was a scooter, and now it’s a car. With your teen driving, it’s time to think about getting him or her an auto insurance policy. The question is, should you simply add him/her to your current auto insurance policy or is it better for your teen to get started with an auto insurance policy of his or her own?

Get Ready to Pay Up

You’re likely wondering how much getting insurance for teen drivers is going to cost you. Whether your teen gets a policy that’s separate or is added to your policy, know that getting insurance for teens is always going to involve an added cost. The main reason for this is because your teen is a new auto insurance policyholder. Another reason is because teens are considered high-risk drivers by insurance companies (teens make up about 30% of all accidents in the U.S.). That said, continue reading to learn which factors will allow you to save money on insurance for your teen.

Ways to Save Money on Your Teen’s Insurance

Getting car insurance for new drivers means spending more money. However, there are plenty ways to save money on auto insurance for teens. Here are some money-saving options to look into:

  1. Multiple Car Discount
    If your teen has his or her own car, a multiple-car policy is a great discounted option that will help you save money by insuring your vehicle and your teen’s vehicle under the same policy.
  2. Safety Vehicles
    If your teen hasn’t purchased his or her vehicle yet, consider a car that has a high safety rating. These cars cost less to insure and will save you money on your rate as opposed to if you get a less safe car insured under your policy.
  3. Increase Your Deductible
    Ask your agent about increasing your deductible to save money. Selecting a higher deductible will lower your monthly rate.
  4. Pay as You Drive Insurance
    Pay as You Drive (PAYD) insurance is a great option if you want your child’s driving to be monitored and rewarded when he/she drives safely.
  5. Occasional Insurance
    Consider insuring your child as an occasional driver if your child is in high school and only drives to school or if your child is in college without a car.
  6. Good Grades Discount
    Some insurance companies have a good grades discount if your child maintains a consistent 3.0 GPA in high school or as a full-time college student.

Should Your Teen Get His/Her Own Policy or Join Yours?

Know that with most insurance companies, it’s cheaper to have your teen added to your policy, and this might be your best option. The reason for this is because you, as the primary policyholder, have access to bundling discounts like multi-car policy and homeowners insurance. Most teens don’t own a home or another car, which means they won’t have access to these types of discounts. In turn, you won’t have the option of discounts such as a good grades discount which is only applicable for high school and college students.

If you’re looking to pay less, most signs point to insuring your child under your own policy as the cheaper option. One of the only reasons you might consider putting your child on a separate policy is if they’ve gotten a lot of tickets in the short amount of time they’ve been driving. In that case, it may cost less for him or her to get a separate policy.

In many states, insurance premiums increase by 100% – 200% once you add your teen driver! Knowing that, you’ll want to save as much as possible when buying car insurance for your teen. If you’re looking for cheap car insurance for teens, know that Freeway Insurance has been providing insurance for families like yours for over 30 years. Purchase affordable car insurance for teens online or over the phone at (800) 777-5620. We can help you and your new teen driver get an affordable policy that’s right for both of you.

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