Most parents of teen drivers wonder if their car insurance premiums will go up, and the short answer is yes. Not only will you have to worry about your kid driving safely and learning how to be defensive, but you will also worry about what happens if they’re involved in an accident. Setting up car insurance is necessary because not adding a driver to your insurance is a sure way to face denied claims.

What is the cost of adding kids to your car insurance?

Adding an inexperienced teen driver to your auto insurance will increase your premium regardless of where you live.

The cost to add a young driver to your car insurance policy depends on a few things: your resident state, the insurance company, the covered cars, and whether you qualify for other discounts. For example, the average cost per year to add a student driver is $1,100 with Erie Insurance and $1,221 with Nationwide.

Fortunately, insurance gets cheaper each year that the teen driver gains experience and keeps a clean driving record. At first, you’ll feel sticker shock, but it becomes more manageable after a couple of years. Also, you can request quotes from multiple insurance companies to compare rates.

Benefits of naming your child on your auto insurance policy

It can be hard to imagine the benefits of adding a teen driver to your car insurance, but there are. 

First, you may qualify for extra discounts like a good student, college student (not at home using the car), and defensive driving course.

Second, having all drivers on one policy makes it easier to manage insurance and finances. Putting your child on a separate policy can be more expensive and complicated. Finally, suppose your teen is involved in an accident in your car. Consequently, the insurance company may deny a claim if your child is not named on the policy.

Most of all, it’s an opportunity to teach your child a lifelong lesson about how to buy, amend, and use car insurance. Eventually, they will have to get an individual policy and should be prepared on how to shop for it.

When should you add your child to car insurance?

The best time to add your child to your auto insurance policy is when they receive their driver’s license. But, first, check with your state DMV and insurance agent to find out if you are required to add them when they receive their learner’s permit.

Before your teen begins learning to drive, review your policy and ensure your coverage reflects your needs. For example, suppose you haven’t reviewed your coverage limits in five or ten years, but your assets have grown. Then, it’s worth checking if your policy’s limits sufficiently protect you from loss.

At Winstead Insurance, we are committed to helping you get the right protection at the right price. Regardless of your driving history or risk factors, we work hard to find insurance that meets your needs.

Call us today at 410.398.6700 (text 410.205.9355) for a no-obligation quote.