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Should You get Separate Car Insurance for Teen Drivers?

While most parents choose to simply add their teenage drivers to the family insurance plan, that simply may not be the best strategy. Instead, you should get your teenager a separate insurance plan as soon as they get their license — that’s our insider tip.  *Please note that we are licensed in Pennsylvania. 

Establishing a separate insurance policy for teen drivers has two big benefits — one for the parents and one for the new teen driver. Check it out:

  • You’ll protect your healthy car insurance premiums from the possibility of a surcharge caused by your teen getting into an accident or getting a ticket.
  • They’ll be in a good position for when they are required to get their own plan, like when they move out of your home.

Get the insider strategy on why establishing separate insurance for teens is the best bet long term — for both of you. Plus, you’ll also get the scoop on what every teenage insurance plan needs to include.

Navigating Insurance for Teens

As a teenager, earning your driver’s license is a thrill. In many ways, it’s the first big step into adulthood. Along with it, though, comes the first foray into the complex world of auto insurance.

Generally, if a teenager owns their own car, they will need their own insurance plan — although some companies allow the teenager’s car to be added to the parents’ policy, provided they live at the same address.

However, if a teenager lives at home and uses their parents’ car, they have the option to stay on their parents’ insurance plan, as a separate licensed driver. Keeping your children on the family insurance plan will be cheaper right away, but can be dramatically more expensive down the road. In addition, your son or daughter’s plan CAN benefit from having a bundle discount with Unruh Insurance.

Let’s break down the benefits of separate car insurance for teens.

Why to get Your Teen His or Her Own Policy: It Helps You

Brand new drivers are more expensive to insure because they are new to driving — and thus more likely to get into accidents or get tickets. If you have a teenage driver on your family policy and they get into an accident, everyone else on the policy can see their rates skyrocket, too.

father with teen son who has his own car insurance policy

Think about it like this: you’ve driven safely for years, and you’re enjoying favorable premiums as a result, yet one or two accidents your teen has can undo all those years of your good driving. While the accident is tied to your teen’s driving record, your insurance policy made the payout. So you and everyone else on the plan will see their premiums skyrocket.

We’ve seen one inexperienced driver cause the family rates for four or five people to jump. Paying one high insurance premium is bad enough – any more than that is miserable. This is the first big reason getting separate car insurance for teens is so important.

Learn more about how much accidents can affect insurance rates.

Why to Get Your Teen Their Own Policy: It Helps Them

As a parent, you’d do anything to help your child succeed — even pay crazy-high teen car insurance premiums.

However, in addition to helping you protect your insurance rate, getting your son or daughter their own insurance sets them up for success.

The best strategy is to set up a solo auto insurance plan for them as soon as they have their license. This gets them their first rate while their record is clean. This way they will already be covered when they want to buy their own car or move out of the house.

mother with young daughter on her own auto insurance plan

Failing to do this can set them up for crazy expensive premiums — or the inability to find good coverage at all. While a young driver’s issues can affect the family’s plan, the incidents are tied squarely to the individual driving record. If a young driver has a tarnished record when they go to get their own insurance (as in, separate from their family’s insurance plan), they’ll find many companies won’t write them plans at all — and the ones they do get offered can be expensive. Setting them up on their own insurance plan early protects them from this possibility because they likely won’t need to search for new insurance in the future.

On the plus side, if they turn out to be safe new drivers, they will be already setting the foundation for a lifetime of saving money on car insurance.

Importance of Accident Forgiveness for Teen Car Insurance

Nothing causes car insurance rates to skyrocket like accidents — traffic and speeding tickets don’t help either, but they don’t even come close.

As we’ve mentioned, since they are new to driving, teenage drivers are much, much more likely to find themselves in a fender-bender or another type of accident.

Another strategy we at Unruh Insurance also recommend is that young drivers take safe driver training courses. Not only does this help young people learn crucial defensive driving skills, but it can also lead to a discount on insurance premiums.

young driver taking safe driver training course

That’s why it’s EXTREMELY important that your young driver’s plan includes all the discounts allowed. First time drivers can qualify for a safe driver discount when you work with the right company. This ensures that the young driver receives the best premium possible.

Partner with Unruh Insurance, Your Local Agent

Interested in finding a great insurance plan for your new driver? You’re in the right place.

Not only do you want your teen driver to lock in a great insurance rate, you also want them to work with a local company that provides A+ customer service. At Unruh Insurance, we have over 40 years of dedicating ourselves to doing those things and more.

In addition, we offer car insurance from three separate companies which provides you and your teen driver fantastic insurance rates.

Want to get a car insurance quote for you or your young driver? Contact us for your free and fast quote!

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