- Do you have to add a teenage driver to your insurance?
- What happens if I don't add my teenager to my car insurance?
- Can a teenager get their own car insurance policy?
- Should a teenager be listed as a primary driver?
- How much do rates increase with a teen as a primary driver?
- Car insurance calculator for teens: Estimate car insurance cost
- Car insurance calculator for teens
- How to get cheaper car insurance for a teenage driver
- FAQ
Do you have to add a teenage driver to your insurance?
If the teen driver lives in your home and doesn’t have their own insurance policy, you will need to add them to yours. Insurance companies require that all drivers in the household be added to the policy unless you can show that they are insured elsewhere.
Once a teenager has a driver's license, they must follow the state’s insurance laws. They need at least minimum coverage, either by being added to a parent’s policy or acquiring their own, an option not available to minors unless a parent cosigns.
Where you live dictates when you must add a teen driver to your insurance policy. Some states allow the parent’s policy to cover teens until they get their license without officially adding them. However, other states require parents to add a permitted driver for coverage as they practice.
Speak with your insurance company before your teen gets a driver's permit. This proactive step will ensure you clearly understand the insurance requirements and any necessary policy adjustments. The representative or agent can tell you if the teen needs to be added to your policy before they get their license, providing you with expert guidance and support.
What happens if I don't add my teenager to my car insurance?
Most states require all drivers, including teens, to have at least a minimum amount of car insurance. Failing to meet this requirement can lead to serious legal and financial repercussions.
First, if your teen causes an accident and doesn’t have insurance, your carrierAn insurance carrier is the company that provides your car insurance policy and pays claims. could refuse to pay the claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing. and even cancel your coverage. When you find coverage again, rates will be higher due to your insurance history.
Second, your teenager could be ticketed for failure to have insurance, which could result in fines and a suspension of their license.
Although car insurance for your teenager is expensive, the negative consequences of allowing them to drive without coverage exceed the cost. Failing to add your teen to your car insurance policy can have serious legal and financial ramifications.
Can a teenager get their own car insurance policy?
If your teen driver is 18, they can get their own insurance policy. Younger drivers may be eligible for their own policy if they have an adult cosigner. However, it's important to note that car insurance rates are much higher for teen drivers on their own policy.
Insurance discounts and the parent’s insurance history can help lower rates when teens are added to a parent's policy. Without these, teenage drivers face significantly higher premiums.
PEOPLE ASK
How old do you have to be to get car insurance?
In most states, you need to be at least 18 years old to get your own car insurance policy. However, an adult may be able to cosign for a policy if you are still a minor.
Should a teenager be listed as a primary driver?
Since teenagers lack experience behind the wheel, insurers charge them much higher insurance rates. So, if a teenager is the primary driver for a vehicle, that vehicle's insurance rates will be much higher.
Your insurance company assigns a primary driver to each vehicle on your policy. Then, factors such as their age, driving record, and gender are used to calculate the rates for that vehicle.
If you have more cars than drivers, it may be possible to avoid having a teen listed as the primary driver. Listing a teen driver as secondary will help lower insurance rates since their factors aren’t being used as heavily in rate calculations.
If you can’t avoid having your teenager listed as a primary driver, consider assigning them to the least expensive vehicle on your policy to keep insurance rates as low as possible.
How much do rates increase with a teen as a primary driver?
Adding a teen as a primary driver on your auto insurance policy will substantially increase your premiumThe payment required for an insurance policy to remain in force. Auto insurance premiums are quoted for either 6-month or annual policy periods..
At age 16, added to a parent's policy, the average annual rate for a 16-year-old female is $4,294; for a male, it's $4,606.
On an individual policy where the teen is the primary driver, average car insurance rates are $6,757 for a 16-year-old female driver and $7,541 for a 16-year-old male driver.
Here's what it looks like to add a teen to a parent's policy as a secondary driver vs. the teen having an individual policy by the company.
| Company | Average annual premium female (solo policy) | Parent's premium when adding a teen female | Average annual premium male (solo policy) | Parent's premium when adding a teen male |
|---|---|---|---|---|
| Travelers | $4,516 | $3,427 | $5,155 | $3,810 |
| Geico | $4,783 | $2,473 | $5,315 | $2,622 |
| Nationwide | $4,885 | $2,372 | $5,685 | $2,510 |
| State Farm | $4,886 | $2,893 | $5,851 | $3,200 |
| Progressive | $6,870 | $3,722 | $7,480 | $3,992 |
| Allstate | $7,105 | $3,878 | $7,766 | $4,195 |
| Farmers | $8,024 | $4,822 | $8,668 | $4,921 |
| USAA* | $4,296 | $2,346 | $4,473 | $2,491 |
Car insurance calculator for teens: Estimate car insurance cost
Many factors affect car insurance rates, such as age, location, gender and coverage. Use the calculator below to estimate the cost of car insurance for your teenage driver.
Car insurance calculator for teens
| Company | Average annual premium |
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People ask
When do you have to add a child to your car insurance?
While many states don’t require teen drivers to be added until they receive their license, others require teens to be added when they get a permit and start practicing. Your insurer will have its own rules, so be sure to ask.
How to get cheaper car insurance for a teenage driver
Teenage car insurance is significantly more expensive than for older drivers. However, there are ways you can reduce rates to a more manageable cost, including:
- Avoid adding the teenager as a primary driver. If you have more cars than drivers, consider adding the teen as a secondary driver.
- Add the teen to the cheapest car. Putting a teen as the primary driver on a less expensive vehicle lowers overall costs.
- Look for discounts. Many insurers offer savings that may be applicable, such as good student, away student, multi-car, and defensive driving discounts.
- Shop around. Insurers offer different rates, so compare multiple companies to find the best deal.
FAQ
Does my teenager need insurance to drive my car?
Yes, a teenager must be insured like every licensed driver in your state or risk legal penalties and denied claims. However, if your teenager only has a learner's permit, your state may not require them to be added to your insurance policy until they receive a full license.
Does the primary driver on insurance matter?
Yes, the primary driver listed on an insurance policy matters. Insurance companies partially base rates on a vehicle's primary driver. The driver’s age, driving record, gender and marital status can significantly affect car insurance rates.
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