6 Things to Consider Before Adding Your Teen to Your Car Insurance

Sep 18, 2021

When your child is old enough to drive, you’re likely experiencing a range of emotions, from pride to worry. But in addition to your feelings about the change, you’ll need to deal with some logistics too. While you’ll hopefully never have to deal with a car accident doctor or insurance, you do need to make sure your child is covered just in case. Before you start adding to your policy, below are some things to consider and prepare for during this new stage of life.

1. Your Rates Will Go Up

There’s really no way around this one. Adding anyone to your policy can increase your premium, and teenagers are in what’s considered a particularly risky category of drivers. Annual car premiums generally go up between 55 and 80 percent whenever a teenager is added to your policy- not a small amount.

There’s a good reason for this price change, however. Teenagers are statistically the riskiest drivers, with accidents among 16- to 19-year-olds higher than any other age group. For your insurer, that means a much higher chance of a claim coming in and an insurance payout being necessary. The extra charge is to cover that payout if the time comes.

You’ll want to work out with your teenager whether you or they are responsible for this price change and ensure all of your paperwork is updated before they take off.

2. You May Want More Liability Insurance

While you’re adding your teen, you may want to find out exactly what kind of coverage you have. If you currently have a low liability limit, this could be the time to increase it. While this can also raise rates, it ensures better coverage in case something does happen requiring you to use your insurance rather than the bare-bones minimum some plans carry.

Experts recommend liability limits of at least 100 bodily injury/300 total injury/100 property when a teenager is added to your policy. In the best-case scenario, you’ll never touch this, but you can be comforted knowing it’s there.

3. You May Not Need It Yet

Each state mandates car insurance, but these rules can vary when it comes to newly licensed drivers. Some states require insurance as soon as a learner’s permit is issued, while others don’t mandate insurance until a person has a driver’s license.

In addition to these state guidelines, different insurance providers may also have different rules. A teen with a permit may be covered for free, or they may immediately increase your premium. Before your child takes their permit test, call your insurer to find out the right timeline.

4. You May Need To Make Changes When They Go To College

Many insurance companies will offer a discount for covering a “student away at college” if your child is more than 100 miles from home and will rarely be using the family car. Let your insurer know if your child lives on campus and keep them updated about their driving habits. If you can prove that your teen uses the car very little or none, your rate could dip accordingly.

5. You Should Consistently Help Them Improve Their Driving Skills

Just because you have a good insurance plan doesn’t mean you want to risk anything with your child behind the wheel. A newly licensed driver is still inexperienced, so it’s important to work with your teenager to improve their skills on an ongoing basis. Plus, the longer they drive without any accidents or issues, the more likely it is your rates will drop over time. In case you are wondering about some commonly broken bones during a car accident we have listed some safety precautions to ease your life.

6. You Should Pay Attention To What Car They Drive

Whether they have their own car or use yours, the car your teenager is driving will have an impact on their premium. Every year that your car gets older, you should see a drop in insurance premiums by about 3-4%. But with a brand new luxury car, it will continue to be more expensive over time. Not to mention the risk of letting a new driver behind the wheel of a luxury car!

You’ll need to disclose to your provider what car(s) your teen has access to, so letting them use older cars while they learn to be responsible drivers is usually your best bet.

If you or your child are in an accident, AICA Lithia Springs is here to help you recover. Our team of car accident doctors, chiropractors, and specialists will provide customized treatment plans, as well as work with your insurance company to make the claims process as smooth as possible.


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