How to Choose Auto Insurance for Teens

Do Teenage Drivers Need Car Insurance?

In almost every state in the US, every driver, including teenage drivers, needs to have insurance. Virginia and New Hampshire are the only states that don’t require car insurance.

You have two options for getting auto insurance for a teen. You can set up a new policy or add them to yours.

While you can buy a new policy, adding your teenager to your existing policy offers several advantages:

• Retain more control
• Enjoy greater flexibility
• Manage the policy more easily

Adding your teenager to your policy gives you more control. You can easily update your policy to include your child. Creating a new policy involves more steps and more work.

You also have the flexibility to choose coverage options that suit your needs. This includes adding your child to the policy for specific vehicles, which is great for households with multiple vehicles.

Adding your teenager to your policy saves time. To put it simply, managing a single policy is more convenient compared to dealing with separate ones.

How Does Car Insurance Coverage Work for Teens?

Coverage for teens works the same as coverage for other drivers. You add coverage for specific situations, such as collisions or liability claims. Each coverage option has a limit, which is the maximum amount that the insurer will pay for those claims.

Adding teens to your insurance policy is like adding a spouse or other family member. All drivers receive access to the same coverage options and limits.

If your policy includes optional coverages, such as roadside assistance, your teen will have access to the same coverage. They also receive the same limits, including the same limit for liability insurance.

However, many parents choose to update their policies when adding teenagers. For example, you may want to choose a higher liability limit to give your family more financial protection in the event of a serious accident.

How Much Does it Cost to Insure a Teenage Driver?

The cost of adding a teen to an auto insurance policy is one of the main concerns for parents, along with the safety of their teen on the road. Unfortunately, as teens have a higher risk of getting into an accident, they cost more to insure.

The average cost of adding a teen to a parent’s auto insurance policy is about $250 to $315 per month. Yet, getting a separate policy is likely to cost much more. In some states, a teen may pay over $500 per month for their own car insurance.

Keep in mind that prices vary depending on a variety of factors. Your child’s current age, ZIP code, vehicle type, mileage, and other details all influence your auto insurance premiums.

Rates May Drop as Your Child Ages

The cost of insuring a teen tends to drop as they age, assuming they maintain a safe driving record. Adding a 16-year-old first-time driver costs more compared to insuring a 19-year-old.

Each year, your teen gains more driving experience and becomes less of a risk to insure. This allows you to get a lower rate as your teen ages.

Tips for Saving on Car Insurance for Teenagers

Waiting for your child to age isn’t the only way to get a lower rate. You may also save by following these simple tips:

• Add your teen to your policy
• Maintain good grades
• Add multiple vehicles
• Ask for discounts for good drivers
• Get quotes each year

It costs more to insure a teen driver compared to an adult with a clean driving record. However, adding a teen to your existing policy is still cheaper compared to giving them a separate one.

Some insurance companies also offer discounts to students with good grades or who meet other criteria. If you qualify for one of these discounts, you may shave a good chunk off the cost of insuring your teen.

You can also try to get a lower rate by adding multiple vehicles. Many insurance companies offer lower rates when you have multiple vehicles covered under a single policy.

Discounts for good drivers are also quite common. If your child avoids tickets and doesn’t get into any accidents, you may receive a discount from your insurer.

You should also shop around for insurance each year. Get new quotes to see if you qualify for lower rates due to your child’s increasing age or any other factors.

Conclusion

Getting auto insurance for a teen involves either buying a new policy or adding them to your existing policy. You’ll typically save by adding to your policy, which can increase your monthly costs by $250 or more.

Teen drivers added to a parent’s policy receive the same coverage and limits. This makes it easy to continue managing your auto insurance policy, as no major changes occur, other than the extra cost.