It’s hard to believe, but before you know it, it’s time to start thinking about auto insurance for your kids. 16 is an exciting age, and most teens feel like receiving their driver’s license is the first big step toward independence and adulthood. When looking into insurance for your young driver, it’s important to consider all the options, including policy types, when to add teen drivers to your insurance, and what rates may look like.
Adding Teens to Your Policy vs Purchasing Their Own
It is possible for teens to purchase their own insurance policies, although you will most likely be required to co-sign with them on their plan. There are both benefits and drawbacks to your teens purchasing their own auto insurance policies.
Pros of an Independent Car Insurance Policy for Your Teen:
- Your child will be in a better position to get their own insurance when moving out of your home
- You’ll protect your own insurance premiums should your child get a ticket or get in an accident
Cons of an Independent Car Insurance Policy for Your Teen:
- It’s difficult to get independent insurance for a teen, even with a parent co-signing
- It’s more expensive for teens to get their own policies than it is to add them to your plan
If your child will be using a family car—i.e., a car under your name or jointly titled with you—they will need to be added to your policy as a listed operator. However, if they’ll exclusively be using a car titled solely in their own name, they may be required to take out their own separate insurance policy.
When to Add Your Teen Driver to Your Policy
As soon as your teen is ready to get their learner’s permit, it’s a good idea to notify your insurer. That way your agent can let you know the company’s policy on when to add your teen to your plan. Because they are using your vehicle with your permission (and with a licensed driver in the passenger’s seat), they may be covered under your insurance up until they get their license.
Once they have their license, you must add them to your insurance as a licensed operator if they’ll be using your car.
Things to Know About Rates and Teen Drivers
Because your teen is learning, your insurance premiums will increase when you add them to your policy. In fact, according to the CDC, 16-17 year old drivers are about 1.5 times as likely to get into an accident than their near-peers in the 18-19 year old age group.
Letting your teen use your vehicle is a risk in the eyes of your insurance company, so your rates will increase. However, you can talk to your agent about options for getting a discounted price—for example, your company may offer a discount if your child successfully completes a driver’s ed course, is a good student, or if the car you choose for them has a good safety rating.
Located in North Central Georgia? Contact R&R Insurance Group to Insure Your Teen Driver
If you’re still trying to figure out the best insurance option for your teen driver, contact us today! R&R Insurance Group is an independent broker, which means we can help each individual client get a personalized policy that’s tailored to fit their specific needs.