Requirements to Include Kids on Your Auto Insurance

When it comes time to insure your teenager as a new driver, the least expensive option for them is to be added to your plan. It is important to know how to include your kids in the most effective and efficient way.

When to Add Your Teenage Drivers

When your child has a learner’s permit, they are typically automatically insured by your primary auto insurance provider. Because the new driver is not allowed to drive without a parent or supervising driver, you don’t need to take out personalized insurance for your child. However, once your child receives a driver’s license, they must be insured either on your plan or on their own. Regardless of state license programs, when your teen reaches the first stage of the license they must be insured. 

How to Adjust Your Policy to Accommodate Your Children

Unless you are very attached to your auto insurance provider, it is worth your while to shop around a bit and examine the policies of at least three companies in order to compare prices. Two different insurance companies can offer quite different prices on the same coverage, especially where a teenage driver is concerned. If you don’t do this already, check with the insurance company that you use for homeowners insurance. If they also offer auto insurance, you might be able to insure the drivers in your family at a reduced rate. 

Ways to Save When Insuring Young Drivers

Insuring a teenage driver is never cheap but it also doesn’t have to break your wallet.  There are a wide variety of discounts out there that either you or your teenager might qualify for that can help reduce your costs. For your teenager, the most basic discount may come from their good grades in school. In many states and through many insurance providers, making a B grade average or above can lead to savings.  Another simple way to save is to drive older, less expensive cars; the more expensive the car the more expensive the car insurance, and when it comes to young drivers the price of car insurance will be even higher than normal. Some other ways to save money on your auto insurance include:

  • The drivers’ education discount – most car insurance providers will lower the cost of your policy if your teenager has successfully completed drivers education course
  • Find out which driver is insured on which car – if you have a luxury vehicle that you won’t allow your teenager to driver, there’s no need to spend the extra money insuring them to use that car.
  • Raise your deductibles – you will save a lot on monthly premiums but pay more in case of an accident.