When your teen has reached that monumental milestone of receiving their driver’s license, you may be wondering how to add them to your insurance and if there are any other considerations for having a teenaged driver in your household.
Our team at Holly McMillin Insurance Group provides parents the opportunity to cover their teenaged driver in the event of an accident and every newly-driving teenager will need car insurance.
Parents of teen drivers have the option to either add them to their existing policy or purchase a separate, individual plan if the child isn’t a minor. A child who is a minor, living in their parent’s household, and driving a car owned by their parents cannot purchase their own plan. They are considered financially dependent and will need to be added to their parent’s current plan.
What to expect when adding your teenage driver to your insurance plan
Operating a motor vehicle comes with tremendous responsibility and part of that newly found independence is the need for car insurance. If your teenage driver has a license to operate a vehicle, they must be insured. It is important to set the expectation upfront that your car insurance bill is going to increase. Your rates will most likely double because young drivers are more likely to be in an accident due to reasons such as distracted driving, not wearing a seatbelt, or driver inexperience. Recent surveys have concluded that there is an average increase of about $2,000 a year for adding teen drivers to their parent’s current plan. This is because more risks require more money to cover those risks. The good news is that rates typically decrease as the driver gets older. In addition, most insurance companies offer a variety of discounts for teen drivers.
What kind of discounts are available for teenage drivers?
Even though your car insurance bill is going to increase when adding a teenage driver, there are a variety of opportunities for discounts. If your child is a student, enrolled in school full-time, then they are eligible for student driver discounts. If a student maintains good grades (usually a B average), accomplishes academic achievements such as Honor Roll or Dean’s list, they can submit proof from school administration or showing their report card to receive discounts on their car insurance. Discounts for good students can save 10%-25% on car insurance rates! In addition to being a good student academically, if the teenage driver completes an approved driver’s education course, they may be eligible to qualify for discounts.
Another opportunity for discounts is having multiple vehicles on your car insurance plan or bundling your home and auto insurance. Some insurance agencies even provide discounts for loyal customers. One of the most important reasons to qualify for insurance discounts is keeping a clean driving record. This means that your teenage driver shouldn’t be involved in at-fault accidents and hasn’t received any traffic violations. If your teenager goes off to college and doesn’t take their car to school, discounts may be available as well. The team at Holly McMillin can provide available discount options for parents adding their teenage drivers to their plan.
How do I add my teengager to my car insurance plan?
The proper time to add a teenage driver to your car insurance plan is the moment that they receive their driver’s license. Some parents may even decide to add their child when they receive their temporary driving permit. When a teenager is driving with a permit, they are protected under the parent’s insurance. When the teenage driver obtains their driver’s license, they will need to be added to the insurance plan. If the child lives with you and is driving a vehicle that you own, they will need to be on your plan.
Unlike health insurance, there is no age limit for your child to be removed from your plan. However, if they are financially independent, typically they will need their own policy. This includes adult children who are married, own a home, or own the vehicle. A college student who is away at school isn’t necessarily considered financially independent. There are varying criteria for students, so be sure to confirm with your insurance provider. Parents will want to inquire for information regarding how to properly add their child to their plan.
The team at Holly McMillin Group can help parents decide when to add their child, rates for adding a teenage driver, and available discounts. A team member will provide a quote and assist parents in deciding the proper time to make the addition.