Teenager Auto Insurance Policy – Who Is Covered?
Reader’s Question:
Why do I still have to add my teenage child that is living with me to my auto insurance if the car is covered no matter who use it?
Helen
Kansas City, KS
Most insurance providers require all licensed household members be listed on your car insurance policy. Since this individual has access to the cars of the house they are a risk factor that insurance providers are allowed to include in their rating calculations.
Not all insurance policies provide coverage to anyone that operates the vehicle. Policies can have motorist exclusions. These exclusions can apply to those under a certain age (teens or under 21 or 25 for instance), those driving under the influence and unlicensed drivers to name a few.
Insurance providers therefore require you list your teen since he or she resides in your household and is a risk factor to them. Most state laws allow an insurance companies to consider all resident operators of an insured car in rating of an car insurance policy. This includes your teenage child, even if he or she has only a learner’s permit and especially when they have a full driver’s license.
Teen Driver With Learners Permit Insurance Rate Quote
Reader question:
My son just turned fifteen and is studying to get his learner permit. Do I have to add him to my policy when he gets it? Isn’t a teen driver insurance rate so much higher?
Gabby
Thanks for asking, Gabby.
Yes, you do have to add him, and yes, a teen driver insurance rate will be higher than the one you currently have. You gotta do what you gotta do, though, and if you do it right, then your teen driver insurance rate does not have to be exorbitant. Here are a few steps to follow when insuring your teen driver.
- Keep it in the family.
A teenager should not have his own car insurance policy, even if they have a job to pay the premium. While adding a teen driver insurance rate to your own policy may seem undesirable, it will come out cheaper than two separate policies. Your teen being on your policy will lower his risk rate, and give him cheaper rates. Not so great for you, but since you’ll probably be helping out with the payments, it’s best to have a lower total than one lower and one very high.
- Keep the grades up.
When your son starts driving, he can get a good teen driver insurance rate if he makes good grades in school. Make an ultimatum. Good grades, you drive; bad grades, you walk. You’re killing two birds with one stone, there.
- Keep looking.
Anytime you’re about to make a major change in your policy, you need to look at what other companies have to offer. Your teen driver insurance rate from one company may be much better than the teen driver insurance rate you have with the company you already own a policy with, because at your current company teens might file more claims.
- Keep it crash worthy.
If you buy the right car, not only can you get a discount on your teen driver insurance rate, but you can also be sure that your teen is more protected while on the road.
- Keep it safe.
Don’t just buy your teen the car and let him loose. Make sure that he understands driving safety, and enroll him in a driving course or two to enforce that understanding. Keep on top of his driving habits and correct him when he is out of line. If he ever wants to get a cheap teen driver insurance rate, then he needs to start his good driving record ASAP.
- Keep it real.
You can’t just tell your son to drive safe, you have to lead by example. Drive well, follow the laws, and try to drive a safe car to show him what should be done. Point out how you drive to him, and use it as a conversation starter on driving safety.
- Keep it innovative.
Many states have adopted a graduated driver’s license program which restricts teen’s driving priveleges while they are younger, and as they get older allows them more freedom, until they reach the age of eighteen. Even if your state does not have this law, you can ensure driver safety by creating a system of your own just for you and your son.
Cheers,
Fashun Guadarrama.
Loading ...