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  • Writer's picturejoseph retcho

Teens In Your Auto Insurance

Updated: Jan 25

teen driver

Adding your teen to your auto insurance policy is a frightening milestone for any parent. Not only is it frightening to send your child out on the road alone, but the increase in your premiums can be terrifying!

Before adding your teen to your auto insurance policy, make sure you understand the process, including how you can save money on coverage.

How Much Does It Cost to Add Teen Drivers to Your Policy?

Adding your teen to your existing car insurance policy will cost an average of $1200/year, or roughly 44% of the current cost of your policy. While this may appear to be a significant increase, it is significantly less than getting your teen driver their own policy, which can cost more than $6000 per year, depending on coverage options. Note that many insurance carriers will not insure new teenage drivers by themselves.

Due to the higher incidence of reckless driving or drinking and driving in males under the age of 20, adding a teenage boy to your car insurance policy may be more expensive in some states or with some insurance companies. Before adding your teen to your policy, consult with your insurance agent to better understand your coverage requirements.

Remember to add your teen to your insurance policy as soon as they get their driver's license. While you should check with your insurance company about covering your teen while they have a learner's permit—some will not require that addition until your teen is officially a licensed driver—you should be careful to follow any rules and regulations imposed by your insurance company.

How to Save Money When Adding Teens to Your Automobile Insurance Policy

Let's face it: Adding a teen to your auto insurance policy is an expensive proposition that you'd prefer to avoid if at all possible. Some of these strategies will help you save money when your teen gets their driver's license.

Make Your Teen Attend Driver's Ed

Most schools still offer this course. If your teen's school does not provide it, look online for a nearby location that does. Many insurance companies will provide a discount on insurance to a teen who has completed a driver's education course. Insurance companies will require driver training certificate that shows behind-the-wheel training.

Encourage Students to Get Good Grades

Teens who are responsible with their homework are more likely to be responsible in other aspects of their lives, and car insurance companies reward that behavior. Many businesses will provide discounts to teenagers with a "B" average or higher.

Choose a Low-Cost First Car

Teens are more likely than adults to be involved in car accidents, and insuring an expensive SUV or flashy sports car can quickly add up. Instead, opt for a low-cost vehicle that is less likely to raise your insurance premiums.

Teach and Promote Safe Driving Techniques

Adding a teen to your insurance policy is costly. Adding a few tickets or a wreck to your record, on the other hand, will quickly send it skyrocketing. Before allowing your teen to drive alone, make sure they are a safe and competent driver.

Reduce your teen's mileage.

Teens who drive infrequently—for example, only to and from a nearby school or workplace—frequently pay less for insurance than teens who drive frequently. You should also notify your insurer when your teen leaves for college, especially if they are not driving.

Teen Driver Safety Tips

You're doing everything you can to teach your teen to drive safely, but these simple tips will make it easier to ensure safe driving and keep your insurance premiums as low as possible once your teen gets behind the wheel.

  • When driving, keep cell phones turned off and in an inaccessible location. This will assist in reducing distractions.

  • Before allowing passengers in the car, make sure your teen is ready. Passengers are a major source of distraction and/or reckless driving, particularly among teenage boys.

  • Driving defensively should be practiced. Defensive driving can go a long way toward preventing road accidents.

  • Always let your teen know that they can call you to come get them if they've had too much to drink (hint: anything to drink, even accidentally, is enough reason to stay off the road!) or the current weather conditions are making them uncomfortable.

  • Remind your teen not to drive while distracted. When the car is not in motion, you can change the radio, eat, and even adjust the heat and air conditioning.

Allowing your teen driver to drive may be frightening, but it does not have to break the bank. If you have a new teen driver who needs to be added to your insurance policy, contact the Retcho Insurance Agency today to find out how we can help.

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