How to Add a Teen to Your Driver Policy

One of the most frequently asked questions by parents of younger teens is whether they should add their children to their insurance policies. In most cases, it’s a personal decision, but you’ll want to weigh a few crucial factors.

In this guide, learn when to add your teen to your existing auto insurance coverage, tips to help you save money, the steps for adding your teen to the policy and essential considerations for getting coverage that suits your family’s needs.

Importance of Adding Teenagers to Your Auto Insurance Policy

Adding teens to your existing policy rather than creating a separate policy can help you reduce overall insurance costs.

Car insurance costs for older drivers are typically less expensive because they have spent enough time on the road for insurance providers to evaluate the type of safe drivers they are. In contrast, teen drivers and beginner drivers may receive higher auto insurance premiums due to their lack of driving experience.

Companies demand these higher insurance premiums to protect themselves from financial loss in case a teen gets involved in costly accidents or has bad driving behavior.

When Should You Add a Teen to the Driver Policy?

Timing is crucial when deciding when to include a teen in your auto insurance policy. You want to add them only when it’s necessary. In Pennsylvania, there is no requirement for a driver’s permit insurance if the teen is driving with an insured adult’s supervision. It becomes mandatory when they start driving on their own. Then, you may add them to your existing coverage or purchase a new driver insurance policy.

Failing to comply with the law can result in legal sanctions. Also, you may have to cover all accident-related expenses, including medical bills, injury liability and property damage.

Auto Insurance Coverage Options

According to Pennsylvania law, any auto insurance plan you choose should cover medical bills, property damage and injury liability. Still, you may want to consider including additional coverage when adding your child to your insurance plan. Here are some worthwhile considerations:

• Uninsured motorist and underinsured motorist coverage: This can be valuable coverage if your teen is involved in an accident with another driver whose coverage is not enough to cover the accident or does not have insurance to cover it. This gives you the security of knowing most medical bills and liability costs may still be covered in these situations.
• Roadside assistance: What if your child needs help with car issues on the road? You may want to include roadside assistance to help ensure your teen is protected and receives the help needed when family members are unavailable. This coverage can help with issues like the car overheating, dead batteries, flat tires, locking keys in the car and towing.
• Collision coverage: If you live in a state that does not offer uninsured/underinsured motorist coverage, collision coverage can be a great alternative. This option pays for the repair costs for the vehicle if it gets into a collision. This may apply even when colliding with a pole, pothole or animal.
• Comprehensive coverage: If your car is damaged by a natural disaster, vandalism or theft, a comprehensive coverage policy covers the damage to the vehicle in certain instances if it isn’t caused by an accident.
• Gap coverage: Gap stands for guaranteed asset protection. What if you still owe a loan on a car that was in an accident, and the coverage you receive is lower than what you owe? If you suspect there will be liability limits, you may want to add gap coverage. It covers the difference between how much the car is currently worth and how much you owe on the car. This makes it critical to think carefully about the car you let your teen use.

How to Add a Teen to Your Driver Policy

Here’s a step-by-step guide for adding a teen to your driver policy:

1. Speak With Your Insurance Agent

Contact your Strock Insurance agent to help you find the ideal coverage. While it’s generally less expensive to add a teen to your existing policy, it might be cheaper to get a separate teenager policy. Obtain quotes to help you decide. You can also see if they can be added to your policy as an “occasional” driver, meaning they won’t drive the car as much as the main driver of a specific car.

You may minimize the premium increase by assigning your teen to the least expensive car on your policy. It helps to ask what cars the insurance company prefers to insure if they are safer car models. You should also check for any potential car insurance discounts your teen may qualify for.

2. Gather All the Necessary Paperwork

Ask your insurance provider what documents you should provide when adding your teen to your policy or creating a separate one for them. These may include your teen’s driver’s license and other identification documents.

3. Carefully Review the Contract

Review the insurance contract for a more comprehensive understanding of your child’s coverage and its impact on your premium. If you have any questions, call your agent for clarification. You must understand all the terms and conditions before signing. Once you have a thorough understanding of the insurance contract, you can sign it. Make sure to attach all relevant documents and send them to the agent for processing. You will receive confirmation of the complete process — it’s that simple!

Tips for Adding a Teen to Your Insurance Coverage

Here are five helpful tips when adding a teen to your insurance policy.

Ask Your Insurance Carrier About Insurance Requirements

Call your insurance policy carrier or local independent auto insurance policy agent. Insurance requirements change frequently, so it’s best to learn what’s new. Ask when the policy carrier requires you to add your teen to your policy, such as when the teen gets their learner’s permit.

Review the State Teen-Driving Law

Each state has different requirements for teen drivers and teen driving insurance policies. For instance, do you need insurance with a learner’s permit? As we mentioned earlier, teens in Pennsylvania with learner’s permits who drive supervised by insured adults do not need separate insurance policies. However, car insurance is necessary when driving solo and without guidance. Again, laws vary nationwide, so ensure you understand your responsibilities.

Research Teen-Driver Insurance Options

Though adding your teenager to your driving policy might make sense, it’s worth seeing if a limited policy is a better alternative. For instance, will your teen drive rarely, such as when home from college? You might qualify for a reduced rate from a different carrier. Plus, if your teen drives a “clunker,” a higher deductible than you have on your insurance policy could be a better bet.

Search Annually for Better Auto Insurance Rates

Every year after your teen gets their driver’s license and keeps a solid driving record, shop around for a better rate on car insurance. Don’t be afraid to contact your local insurance agent to see if you can get a lower amount. Even a few dollars a month adds up in a year. Every 12 months of safe driving could mean more money in your pockets.

Let Your Child Contribute

One last piece of advice on teen car insurance is to have your teen pay at least part of the premiums with earnings from a part-time job or birthday money. Teenagers who have some “skin in the game,” so to speak, tend to take their roles as drivers more seriously.

Financial Considerations When Adding a Teen to Your Insurance Policy

Getting auto insurance for your teenage child can impact you financially, so it’s best to consider the following.

• Understand insurance rate changes: Insurance premiums can rise due to changes in interest rates, inflation and risk levels. Review your policy to know your rights.
• Determine how much coverage you need: You can purchase different types of coverage, each with different rates. Assess your needs and choose a suitable policy. You can seek help from a professional to determine how much coverage to purchase.
• Consider the teen’s gender: There are disparities in premiums based on the teen’s gender. Typically, male teens attract higher premiums than females, but it’s vital to research. Some states, such as Pennsylvania, ban such comparisons.
• Add the teen to your policy: Purchasing separate coverage for your child is usually more expensive. Plus, you may still have financial responsibilities for a child under 18, even if they have an individual policy. You only need separate coverage if your child has already racked up tickets, been involved in accidents or is raising the rates on your family policy.

What Insurers Consider When Adding Teens to Insurance Policy

Here are six crucial things insurance providers consider when adding teens to their parents’ existing auto insurance policy:

1. The teen’s age
2. The teen’s safety record
3. The teen’s driving record
4. The vehicle type, age and overall condition
5. Driving duration and distance
6. Primary driving location

How Can You Save on Your Car Insurance Policy?

Here are five ways you can save on your teen’s auto insurance policy:

1. Delay getting the insurance: Only add your teen when necessary, like when they start driving independently.
2. Get the right car: Check with the insurer to know how much it will cost to insure different vehicles before purchasing one for your teen.
3. Look for discounts: Some insurers offer car insurance discounts for good students, safe drivers, low-mileage drivers, trainees and families. These can lower your premiums.
4. Consider usage-based insurance: If your teen is unlikely to drive frequently, purchase a usage-based policy like pay-per-mile insurance.
5. Alter your insurance policy: Remove nonessential coverage to reduce costs.

Get Teen Auto Insurance With Strock Insurance

Strock Insurance provides the best coverage by prioritizing our clients’ needs. We help families in Central Pennsylvania understand the available options and how they can benefit from each. Do you need auto insurance for your teen? Contact us now to speak with an agent about finding the best rates for your new driver.

Updated on December 26, 2024