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Adding Your Teenager to Your Auto Insurance Policy?

By Compuquotes Team on March 27th, 2008
Auto Insurance

Adding your teenager to your insurance policy can really throw you for a loop, especially when you find out the cost of it. Insuring your teenage driver can be a costly proposition and you could see a significant rise in your premiums.

It is important however that you list your teenage driver on your insurance policy, regardless of the fact that it is going to cost you some extra cash. If you fail to list your teenager on your vehicle you could face having your policy canceled or not renewed and possible surcharges on your policy. Some insurance companies can and will cancel your insurance policy for misrepresentation if you don't list your teenager on your policy.

If your teenager regularly drives your vehicle or any vehicle in your home, listing them on your insurance policy does a few things:

Firstly, it ensures that your vehicle is covered by your insurance in the event that there is an incident while he or she is driving. Secondly, it also means that your teenager will gain some valuable insurance experience. This experience will translate to some savings for your teenager when he or she gets their own vehicle and insurance.

It's important to also note that some insurance policies are defined differently - some insurance policies have the insured people on a vehicle labeled as anyone who is related to the primary driver by blood, marriage or adoption and is a resident of your household.

Insurance companies are obviously concerned about teenage drivers, but are there really valid reasons for it, or are they just trying to gouge you for more money? Actually, there are statistics that show that teenage drivers are a high risk. One of the statistics from the US National Highway Traffic Safety Commission states that the collision rate is three times greater for 16 and 17 year old drivers than it is for 18 and 19 year old teenagers.

Teenagers pose a much greater risk for accidents than older, more experienced drivers, which is why the insurance rates for teenage drivers is so much higher. A parent can expect to pay between 50 and 100 per cent more for their insurance when they have a teenager listed on their insurance.

There is a break for parents through-many insurance companies offer a discount for 'good students'. This discount can be applied to teenagers who have an average of a B in school or higher. Some insurance companies will also offer a discount for teenagers who have taken driving courses.

The type of vehicle you drive and allow your teenager to drive will also impact the cost of your insurance. More expensive vehicles obviously mean a more expensive premium, but adding your teenager onto an expensive vehicle will mean an even higher increase in your insurance rates. It may be wiser to get your teenager their own car that is less expensive and older, as these vehicles pose less of a risk to the insurance companies.

As a parent of a teenager, your best option is to call your insurance company and find out how much your insurance rate will be if you add your teenager. It's also a good idea to check around with some other insurance companies to find out if they can offer you a better deal. If you use an insurance agent, he or she may be able to offer you help by looking for better rates with different insurance companies that they have a market with.

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