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Adding a Teenager to Our Auto Insurance

By Compuquotes Team on March 27th, 2008

Auto Insurance

When your little one grows up and learns how to drive, you've entered a whole new realm of parenthood. It can really throw you for a loop, especially when you find out how much it costs to add your teenager to your auto insurance. Most people will find that insuring their teenager as a driver can be very costly and that their premiums rise significantly.

However, regardless of how expensive it is to include your teenager on your insurance policy it is imperative that you do so. If you do not list your teenager on your insurance policy, you could face having the insurance cancelled, not renewed or surcharged with fees. Some of the insurance companies will cancel your policy for misrepresentation for not having your teenage driver included on your insurance. Many people ask why they need to have their teenager listed as a driver of their vehicle, and there are many reasons. If your teenager drives your vehicle or any vehicle in your home, listing them as a driver on your insurance policy will do a few things for you, including:

Ensuring that your vehicle and your teenager are insured by the policy if there is an accident or collision while the teenager is driving.
Your teenager will gain some valuable insurance experience, which will help save them some money on their own insurance when they purchase their own vehicle.

Every insurance policy is defined differently and some of those policies state that the insured people on a vehicle are anyone who is related by marriage, adoption or blood and resides in your household.

The insurance companies on the whole are concerned about teenage drivers and for a good reason - statistics show that teenage drivers are a high risk for insurance companies. The US National Highway Traffic Safety Commission states one statistic that the collision rate for 16 and 17 year old drivers is three times higher than for 18 and 19 year old drivers. Statistics also show that teenage drivers are at a much higher risk for collisions than an older and more experienced driver is. These reasons all compile to the insurance companies as the reason they charge so much more for insuring a teenage driver. Parents can expect to pay between 50 and 100 per cent more for their insurance with their teenage driver listed on the policy.

There are ways though, parents, that you can save some money on your insurance even with your teenager listed as a driver:
Good student discounts - this discount can be used if your teenager has an average of �B� or higher in school.
Driving courses - A discount if your teenager has taken a driving course.

The type of vehicle your teenager is allowed to drive. More expensive and newer vehicles will mean a higher premium, but having your teenager listed as a driver on an older vehicle that is less expensive can save you quite a bit of money.

See average annual insurance rates for more than 2,000 vehicles

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