Adding a new juvenile driver to your auto insurance coverage may result in some sticker shock, but it is critical for protecting your family’s finances. Fortunately, there are a few things you can do to aid with the premium increase. Here’s everything you need to know about adding car insurance for kids to your auto insurance policy in your family. Let’s follow us to find out about car insurance for kids in this post!
Adding car insurance for kids
If your child has a driver’s license, lives in your home, and uses a car registered to you, they must be added to your auto insurance policy. This is true regardless of their age because everyone residing in your household who has access to your vehicles must be included as a driver on your auto insurance.
If your child has a driver’s license but does not intend to drive in the near future, you can formally omit them from your vehicle insurance coverage. Your insurance company may require you to sign a form guaranteeing that your youngster will not drive any of your vehicles. If they do get behind the wheel and crash, your vehicle insurance company will not cover the losses. Once you and your child have decided to resume driving, you can contact your insurance carrier to add your child as a driver to your coverage.
Benefits of adding car insurance for kids
Although adding your child to your policy will most likely result in a premium hike, there are some advantages. Some of the most popular benefits of including your child as a driver on your auto insurance policy are:
Reduced premiums for your child: If your teen is 18 or older, they can get coverage in their own name (assuming they own, lease or finance their own car). Car insurance for 18-year-olds on their own, on the other hand, is typically quite pricey. If your teen lives with you and has your name on their vehicle, they will almost certainly save money by continuing on your coverage.
Qualifying for new savings: Teen drivers are eligible for a variety of auto insurance discounts. By taking advantage of good student discounts, distant student discounts, and teen driving programs, you may be able to offset some of the expense of adding your teen driver.
Policy management is simplified: Having your complete household on one policy may make it easier to make changes, pay bills, and maintain track of your insurance documentation.
Obtaining coverage for your adolescent: Adding your adolescent driver helps to give coverage in the event of an accident. If your child is not listed as a driver on your policy but routinely drives one of your vehicles, coverage may be rejected in the event of an accident.
Adding your teen to your vehicle insurance policy may also present a learning opportunity. You may teach your youngster about auto insurance, explain why it’s necessary, and show them how to pay bills.
Cost of adding a young driver to your auto insurance policy
Adding a minor driver to your vehicle insurance coverage would almost certainly raise your premium. According to a new Bankrate analysis on inexpensive car insurance for minors, 16-year-old drivers suffer some of the highest auto insurance costs of any age group. When they were added to their parent’s policy, the overall premium cost climbed by $2,000 to $2,300 per year for a full coverage policy.
The greater cost of insuring juvenile drivers is due in part to their lack of driving experience, but other variables may also be at play. Teens, in most situations, do not have a credit history or credit score, which are used to calculate vehicle insurance prices in some jurisdictions. They are also unable to obtain discounts such as loyalty, bundling, or multiple vehicle discounts. Teens, on the other hand, can take advantage of special student auto insurance discounts to help offset part of the rate rise.
When should you add your teen or young adult to your vehicle insurance policy?
As soon as your teen or young adult child has their driver’s license, you should add them to your insurance. To be safe, you should contact your insurance provider before your child begins driving. Some states, such as Florida, offer “risk alert” reports to insurance firms. These reports notify them of any licensed operators who have the address of the insured on their driver’s licenses.
Utility bills, rental agreements, and deeds are examples of formal papers that are commonly recognized as proof of residence. Failure to demonstrate that the unlisted operator is covered elsewhere or resides abroad necessitates their inclusion in the policy. Furthermore, failure to provide the necessary information to allow the unlisted operator to be included in the policy may result in the termination or non-renewal of the vehicle policy in the middle of the term.
Frequently asked questions
Is it necessary for my child to own a car in order to obtain insurance?
No. Most younger teenagers do not own the vehicles they drive, and their names are not likely to be on a lease or loan. If your child is driving a car owned by you or another member of your household, they must still be included as a driver on your policy.
What information do I need to provide in order to add my child to my policy?
You’ll most likely need your child’s name, birth date, and driver’s license number. You may need their Social Security number as well. If your child is eligible for a good student or remote student discount, you may be required to provide proof of their grades (such as a recent grade card) or documentation of the school they attend if they do not have a car (like an admissions letter with the school name on it).
How can I save money on teen auto insurance?
Adding a teen to your policy provides an excellent opportunity to compare vehicle insurance quotes from other companies. You may discover that the business that was the cheapest before you added your adolescent is no longer the lowest option. Taking advantage of discounts is another great way to save money, as is teaching your child safe driving behaviors so that they keep a clean driving record.