Adding a Teenager to Your Car Insurance Policy
Your new driver will most likely change your insurance rates. While you can’t avoid it, you can take out some of the sting.
Your teen is excited to get behind the wheel, and now you need to get your teen auto insurance. You, however, may be worried, and wondering how this new driver will affect your auto insurance premium. While your premium will likely rise, there are many ways to lessen the impact of adding a teen driver to your auto policy.
Why car insurance is so expensive for teenagers
According to the Insurance Institute for Highway Safety (IIHS), teenage drivers have crash rates nearly four times those of drivers 20 and older per mile driven.1 Younger age can mean inexperience and immaturity, which can lead to speeding and other risky habits. Young drivers tend to overestimate their driving abilities while also underestimating the dangers of the road. All these factors make the insurance cost for teenage drivers higher than an adult driver.
Insurance companies often use statistics like these in combination with internal loss data as a basis for their premium rates.
How much does your insurance go up when you add a teenage driver?
You can expect your auto insurance premium to rise when you add a teenage driver. Exactly how much can depend on several factors. Two things that could make adding your teen extra costly are them driving or purchasing an expensive car, and receiving speeding tickets or getting in accidents.
However, there are several options that are within your control to lessen the impact on your auto insurance premium.
Good student discounts –
Fortunately, you may be able to reduce your premiums if your child performs well in high school or college. Some insurers, including Amica, will offer a discount when a full-time student maintains at least a B average (3.0 grade point average), or is on the honor roll or dean’s list. Written proof of grades is required. If you homeschool your child, check with your insurer to see if other proof can be provided. With most policies, drivers between the ages of 15 and 25 are eligible for this discount.
Car safety features –
Keep in mind that vehicles with the highest safety ratings likely will have newer, pricier features. However, they may help you save on your car insurance premium. The IIHS offers a list of top safety picks by year, along with a searchable database of safety ratings for specific makes and models.
Young driver training discounts –
Some insurers, like Amica, have discounts for drivers under 21 who complete an accredited driver training program. Exact program requirements and discount availability vary by state, so check with your insurer to see what’s needed for your teen to qualify.
Student away at school discounts –
If you have a teen driver who’s been on your policy but is now headed off to college without a car and will be returning home, check to see if your insurer has a “student away at school” discount.2
Increase your deductibles –
Regardless of adding a driver, you can always consult with your insurance company to discuss increasing your deductibles to reduce your bill. Just remember, if you or your teen have an accident, your out-of-pocket expenses will be higher. It’s important to never make your deductible higher than what you could afford out-of-pocket.
There may be other ways to lower your premium when adding a teen. Check out Amica’s car insurance discounts page to find out more.
Should a teen get their own policy or go on a parent’s policy?
Whether a teen should get their own auto policy depends on a few things. Generally, if a teenager gets their own car, they’ll need to get their own auto insurance policy. This is because the owner of an insurance policy needs to match the owner of the vehicle so that someone can’t get a payout from an insurance policy for a vehicle they don’t own. So if your child is driving a vehicle that you own, they’ll typically need to be listed as a driver on your policy. However, each situation is different and Amica’s representatives are happy to discuss your unique case.
How much coverage do you need for teen drivers?
When thinking about car insurance for teenagers, adding a teenage driver isn’t the time to cut corners with coverage. It’s important to understand that if your teen driver is in an accident, the parents’ assets can be at risk in the event of a liability claim. Amica recommends the following liability coverages, especially when there’s a teen driver on the policy: $250,000 bodily injury per person, $500,000 bodily injury per occurrence, $250,000 property damage per occurrence. An umbrella policy can provide even more liability coverage should you need it.
How to add a teenage driver to your auto insurance policy
If you’re wondering how much adding your teenage driver will cost, you may be able to get an estimated quote on Amica.com. Log in to your Amica.com account to learn more. You can also call your insurer to get a quote and discuss opportunities for savings with your unique situation. To add your teen, you’ll need their driver’s license number, required documentation for discounts, and if you’re adding a new vehicle, you’ll need the VIN as well.
Your car insurance costs can change
As your teen drives, gains experience and shows that they’re a good driver, your insurance company may charge you less by the time your child turns 19. You can also save when your child is away at school full time and without a vehicle, depending on the distance. Again, be proactive. Keep in touch with your insurer to make sure you’re saving as much as you and your family are eligible for.
1 Teenagers, Insurance Institute for Highway Safety, 2022.
2 Discount not available in all states.
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