Since teenagers are the riskiest drivers out on the road, it makes sense that your auto insurance rates are going to rise when you add one to your policy. While you might have been paying $200 per month for you and your significant other on your policy, you end up getting hit with a bill for almost double just because you added your teenager to your policy.
Until you actually add your teen, there is no way to know what your rates are going to be, but you can definitely expect them to rise. To help you along the way, here are a few questions you need to ask about insuring your teenager.
When do you have to add your teen to the insurance policy?
- Every insurance company is going to have different guidelines that determine when you have to add your teen to your current policy.
- Some insurance policies require your teen to be added as soon as they have their learner’s permit, while others don’t require them to be added until they have their actual driver’s license.
- Depending on what state you live in, your teen might qualify for a good driving discount in just three years. That could save you as much as 20 percent on the cost of insurance.
Can the insurance company force you to add your teen even though they aren’t allowed to drive yet?
- Just because you might not be letting your teen drive your vehicle, that doesn’t mean you don’t have to add them to your insurance policy. Most carriers require you to list anyone who is old enough to drive.
- Rules can vary from one state to the next, so you will need to ask your insurance agent for the specifics where you live.
Is it cheaper to have a separate policy for my teen or put them on the family policy?
When adding a teen to your insurance policy, there is a good chance that your insurance rates are going to end up doubling, if not tripling. It often ends up saving you money by adding your teen to your policy than it does to end up getting them their own policy.
Is the damage covered if a teen crashes the car and they aren’t on the policy?
While your vehicle might still be covered even if your uninsured teenager ends up crashing it, there are going to be ramifications. You could end up with a higher premium or the insurance company might refuse to renew your policy because you didn’t report your teen as a driver. Policies where the teen was specifically excluded are another story. Your insurance company doesn’t have to pay anything in those situations.
Does the type of vehicle the teen drives affect the premium amounts?
If you don’t want to get stuck paying an arm and a leg, you need to stick with a sedan or minivan for your teen driver. Sports cars or newer vehicles in general are going to cost the most amount of money per month. Look for different safety features such as daytime running lights and automatic seat belts. Even though your teen might have done exceptionally well in school, you are better off going with a decent used car than you are a new one, especially when it comes to your insurance pocketbook.
By going through the tips above, you can save yourself a lot of hassles and headaches along the way. Having a teenage driver doesn’t have to be as stressful as you might think. It just takes proper planning and a little extra precaution to make sure you get what you need at a price you can afford.
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