Your teenager’s first experiences with driving can be a fun and exciting milestone in their life. Even so, there’s no denying that younger drivers tend to have higher accident rates, making insurance companies less inclined to offer cheaper premiums. Here’s what you need to know about adding your teen to your car insurance and how you can find the cheapest rates possible.
Simply put, yes, your teenager will need to be added to your car insurance plan if they are licensed and drives a vehicle registered to your home. This applies to anyone regardless of age since anyone driving your car will need to be listed under your insurance plan. Even so, if your teen is licensed by doesn’t plan to use your vehicle, you can opt them out of your car insurance.
If you and your teen are confident that they won’t drive your vehicle in the foreseeable future, your insurer may ask you to complete forms that confirm this decision. Granted, this can be changed over time so long as you communicate with your insurer. It should be emphasized that if they’re not covered under your car insurance and they get into an accident with your vehicle, these damages won’t be covered.
Generally speaking, there are no definitive rules as to when you need to add your teen to your insurance. You may add them under your car insurance plan the moment they receive their permit, although this isn’t required. Granted, it’s always a good idea to review your state’s specific requirements along with your insurer’s internal guidelines when it comes to your teen and vehicle coverage.
For example, some insurance companies don’t include a fee if you choose to add your teen to your plan after they get their permit. This will eventually change when they turn 18, but in the meantime, it can significantly reduce insurance costs. Even so, this doesn’t apply to every insurance company. You may need to pay premiums as soon as they start driving with a permit.
Being that they’re going to be more inexperienced, accident rates among younger drivers is significantly higher than the rest of the population. Thus, if they’re driving your vehicle, you’ll be assured knowing that damages will be covered in case of an accident. Overall, there are far more benefits to adding a teen to your car insurance plan than otherwise.
For one thing, premiums will be much less expensive for your teen, a major benefit for them once they turn 18. Also, many insurance companies offer specific advantages for younger drivers such as student discounts and teen driving programs. Plus, having your entire family on one plan can be easier for organization and billing purposes.
To add your teen to your current car insurance plan, speak with your company about their specific guidelines while also observing state laws to remain compliant. Get a quote about adding your teen to your current plan while shopping around others' policies to get the best rate. Once you’ve found your preferred payment option, add your teen at the most convenient time, and remember to ask for discounts.
Once you’ve finalized everything with your teen and their place in your car insurance plan, continually monitor your child. Encourage them to drive safely and proficiently to prevent accidents, even if they know you’ll be covered. For every renewal, always shop around to ensure you’re getting the best rates possible while also checking for discounts.
You could unfortunately be accused of committing fraud, specifically material misrepresentation. This means that your knowledge of the fact that an unlicensed driver was behind the wheel of an uncovered vehicle makes you liable for the accident. Plus, the consequences can be extremely expensive since your insurance company won’t cover damage costs.
Another alternative is that your insurance company may fully cover the accident. However, this will come at a cost if they ask you to cover all the premiums that should have been paid upfront. In other words, instead of premiums being spread out over a certain period of time, they’ll all be due at once following the accident, contributing to hefty fees.
Adding your teen driver will probably increase your car insurance rate. More specifically, the average premium costs with a teen driver added to the family plan amount to about $2,000-2,300 per year. This is mostly due to the higher number of accidents associated with younger drivers per year. Plus, most teens don’t have a credit score or history to back up their insurance rates. This makes it difficult for them to qualify for special discounts other than ones made for students.
Are you thinking about adding your teen to your car insurance plan? Our professionals at Worth Insurance are happy to help you with the process! Get a quote from us to learn how we can cover you and your student driver today!