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When Does It Make Sense for Teen Drivers to Get Their Own Insurance?

By September 8, 2023September 12th, 2023Personal Insurance

If you have a teen driver in your household, you may be wondering how to insure them and concerned about how much it will cost. Car insurance for teens can be expensive, but luckily, there are many ways to save money and get the best coverage for your young driver.

The first thing you’ll need to know is that there is no such thing as a separate car insurance policy specifically for teens. Teen drivers are expected to meet the same minimum liability requirements as any other driver in their state. As such, they will need to be added to their parent’s policy or get their own policy, depending on their situation.

Adding a Teen Driver to Your Policy

In most cases, it is cheaper and easier to add your teen driver to your own existing car insurance policy. By doing so, they can take advantage of the discounts and savings that you have earned as a long-time driver with good credit and driving history. Your teen driver will also benefit from the same coverages and limits that you have on your policy, which may be higher than the state minimums.

However, adding a teen driver to your policy will also increase your premiums, since teen drivers are considered high-risk by insurers. This is because they are more likely to cause accidents, get tickets, and drive distracted than older drivers. According to Bankrate, parents can expect to see their annual insurance bill increase by $2,168 when adding a 16-year-old driver to their full coverage car insurance policy.

To offset this additional cost, you can look for discounts that apply specifically to young drivers. For example, some insurers offer credits for good grades, completing driver’s education courses, safe driving apps, or low-mileage driving. You can also raise your deductibles, drop unnecessary coverages, or even shop around the market for better rates.

Getting a Separate Policy for Your Teen Driver

There are some situations where it may make sense for your teen driver to get their own car insurance policy instead of being added to yours. For example:

 – If your teen driver has a bad driving record or multiple violations that would raise your rates significantly

 – If your teen driver owns their own car and you don’t want to be liable for any damages or injuries they cause

 – If your teen driver lives away from home for school or work and drives a different car than yours

 – If your teen driver wants to establish their own credit and insurance history

Keep in mind, purchasing a separate policy for your teen driver is usually much more expensive than adding them to yours. That’s because they will have to pay higher rates based on their age, experience, and credit. They will also have to decide on their own coverage limits, which may be lower than what you have on your policy.

If you decide to get a separate policy for your teen driver, you should still compare quotes from different insurers and look for discounts that apply to them. You should also make sure they have adequate liability coverage to protect them from lawsuits and injuries in case of an accident.

The Bottom Line

Car insurance for teens can be costly, but it is necessary to protect them and yourself from financial losses in case of an accident. Whether you add your teen driver to your policy or get them their own policy depends on several factors, such as cost, convenience, liability, and preference. You should weigh the pros and cons of each option and choose the one that suits your situation best. You should also shop around for the best rates and discounts for your teen driver and review your coverage with your agent regularly.