What You Need to Know About Adding a Teen to Your Auto Insurance Policy

When your child gets their driver’s license, it’s an exciting milestone. It also comes with additional responsibilities, including making sure they’re properly insured. Whether they’ll be driving your car or one of their own, here’s what you need to know about adding a teen to your auto insurance policy and keeping them (and your wallet) protected.

Adding a Teen to an Auto Insurance Policy

Once your child gets their license, they need to be listed on an auto insurance policy. This means you will have two main options:

Adding your teen to your auto policy
Adding your teen to their own auto policy (at Unruh, we recommend this option)

If your teen will mostly drive a car you already own, one option is to add them to your existing policy. Yes, this will raise your premiums (teen drivers are seen as higher risk). But it may also be a more affordable solution, depending on your situation.

When Teens Need Their Own Policy

If your teen owns a car titled in their name, they must have their own auto insurance policy. This setup keeps their policy separate from yours. At Unruh, we recommend this approach because it ensures that an accident involving your child won’t impact your policy

Keep in mind that stand-alone policies for young drivers can be pricey. If you’re after the best pricing, the best coverage, or somewhere in between, an independent agent can help. They will shop the policy for you!

What Happens If You Don’t Add Your Teen to an Auto Policy?

Not adding a licensed teen to your policy might seem like a way to save money, but it can lead to serious consequences, including:

Coverage Denial: If your teen gets into an accident and isn’t listed on your policy, your insurance company could deny the claim. That could leave you on the hook for all repair, medical, or legal expenses.
Policy Violation: Insurance companies expect all licensed drivers in the household to be disclosed. If they find out your teen wasn’t added, they might cancel your policy or refuse to renew it.
Uninsured Driving Penalties: If your teen drives without being properly insured, they could face legal consequences like fines or even license suspension, depending on your state’s laws.
Financial Headaches: Any accident your uninsured teen causes could result in out-of-pocket costs for vehicle damage, medical bills, or lawsuits.

Adding a teen to your auto insurance policy (or their own) might feel like a hit to your budget, but it’s the safest way to ensure they’re covered and your family is protected from unnecessary risks.

Tips for Managing the Costs

There are ways to ease the financial impact of adding a teen to your auto insurance policy:

Encourage good grades: Many insurers offer discounts for students with a high GPA.
Consider driver safety courses: Teens who complete approved safe-driving programs may qualify for lower premiums.
Pick the right car: If your teen will be driving a specific vehicle, choosing one with good safety ratings can help reduce costs.
Review your coverage: Make sure your liability limits are high enough to protect your family’s finances, especially with an inexperienced driver behind the wheel. And if you review your coverage with your agent, they may be able to give you extra premium-saving tips.
Look into safe driving rewards programs: Example – Erie’s YourTurn app rewards safe driving with gift cards to your favorite places.

Why Proper Coverage Matters

Having your teen properly insured isn’t just about following the law; it’s about protecting your family. Whether they’re driving your car or their own, adequate coverage can provide peace of mind and financial security in case of an accident.

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