New Guidelines & How To Navigate As A Parent
Adding a teen driver to your auto insurance policy can feel overwhelming, but timing and strategy can help manage costs while ensuring proper coverage. Here’s what you need to know.
When to Add Your Teen
Most insurers require you to add your teen as soon as they receive their learner’s permit—though some allow you to wait until they have a full license. Check with your carrier to avoid coverage gaps.
How Insurance Companies Rate Teen Drivers
Insurers now rate risk by household, meaning you can no longer place your teen on a separate policy unless:
- The teen owns and titles the car in their name
- They live at a separate address
Otherwise, they must be listed on your policy. However, if your teen doesn’t drive, you can sign an exclusion form to remove them entirely. Keep in mind: You can’t exclude them on a per-vehicle basis—it’s all or nothing.
How to Manage Costs
Teen drivers are expensive to insure, but these tips can help:
✔ Opt for a safe, used sedan – Avoid buying them an EV—they cost more to insure due to high repair costs.
✔ Encourage good grades – Many insurers offer good student discounts.
✔ Consider telematics – Usage-based programs can reward safe driving habits with lower rates.
Final Takeaway
Adding a teen driver isn’t optional, but understanding how insurers rate risk can save you money. Review your policy, explore discounts, and choose the right vehicle to keep costs manageable. Need guidance? Contact us to discuss your options!
