When a teenager gets their driver’s license, it’s an incredibly important milestone in his or her life. In many cases, parents like to add their teenager to their existing insurance policy, and that can cause the rates to increase. At Truly Insurance, you can find the information needed to help you obtain cheap car insurance for teens without compromising their safety.
Parent’s Policy vs. Separate Policy
The question of whether to add a teen to their parent’s current policy or to get one of their own is always complicated to answer. Since insurance companies have different rules and prices, it’s usually challenging to determine which the best route is.
In many cases, adding a teenage driver to their parent’s insurance policy is a cheap way to go. Usually, parents receive a significant discount for bundling insurance, and having multi-policy and multi-car insurance enables you to qualify for those discounts if you’re a parent adding a teen.
There are insurance companies that need to rate a teenage driver on all vehicles included in the policy and not just the specific car that the teen is driving. That factor alone is one reason that might cause a parent to reconsider adding a teenager to their policy and opting for separate insurance.
If the parent has multiple vehicles on their plan and they all have full coverage, adding a teenager can automatically cause the rate to increase. If the young driver has a separate policy, the insurance company provides a price that is based solely on the vehicle that they are driving. However, it is possible for a teen driver to receive discounts for living in the same house as another policyholder.
Pros and Cons of Adding a Teen to Parental Policies
Whether it’s your child or not, to keep you informed, here are some pros and cons when adding a teenager in your insurance policy:
- Child Enjoys Coverage Options
There is major peace of mind that usually comes with a parent adding their teen to their own insurance policy. As a parent, it enables you to feel safe that your teenager is driving with the same deductibles, limitations, and coverage as you do. In the majority of situations, you can customize to have more coverage on a specific vehicle.
- Discount Qualifications
There’s no way around it: adding another person and even more vehicles to your policy is going to cost you more. However, if it’s your teen that you add, it’s possible you can end up qualifying for a discount. You can even benefit from your own teen’s extended driving courses.
- It Doesn’t Take Much
Adding a teenager to your policy doesn’t take a lot of time. You can typically contact your insurer by phone, provide them with some information, and you might not even have to go to the office. In some instances, it’s possible to make the change online.
- Higher Insurance Rates
Since younger drivers have limited experience behind the wheel, they have a more substantial risk than more experienced drivers. By adding more risk to your insurance policy, it’s likely to cause you to pay more. It’s also important to remember that your rate can increase if your teen consistently racks up multiple moving violations.
- Paying for Accidents
Teens are more likely to get into accidents, and those accidents might be more than what your coverage limits are. In these cases, you may need to pay out of pocket to cover any injuries or damages.
This is also true for any accidents that are your fault, but with more experience, you’re less of a risk. Hence, if you add your teen to your policy, it’s best to raise your limits.
Saving on Car Insurance
There are a few ways that can help teens save on their insurance as well as save on your insurance if you’re a parent looking to add your teen to your policy. While shopping around for different quotes is still one of the most suggested and primary ways to find the best quotes, it’s always a good idea to know of other ways you can save.
Many teens get “hand-me-down” vehicles from family members. Sometimes these cars can be old, and while it might save money on the vehicle itself, it can cost more for insurance. Try consulting with various insurance agencies to find out which vehicles have the highest and lowest claim costs if you, or your teen, is looking for a vehicle.
If it’s an old “beater” that’s getting insured, you can choose to skip collision and comprehensive coverage on it. That is especially true if it’s an experience-building car and not one that’s going to be a severe write-off in the case of an accident. If the amount you might get for a write-off is less than your deductible, it’s likely not worth the higher premiums for additional coverage.
It’s possible that raising your deductibles can significantly cut down on your monthly insurance premium. However, keep in mind that higher deductibles can be something you end up regretting.
If your teen gets into an accident, you do end up having to pay more out-of-pocket expenses. If the teen is a very cautious or an infrequent driver, it can be one of the ways to get cheap car insurance for teens.
Disclosing Teen Drivers
It becomes exceptionally tempting to parents with young drivers to refrain from telling their insurer because of the extra cost. If you are a parent considering that, it is not a path that you want to take. In addition to being a breach of your insurance policy, other key elements cause it to be an awful idea.
If you don’t disclose your teen driver to your insurer, you won’t receive any coverage in the case of any property damage or injuries caused by your teen. That means all of the expenses are going to come from your wallet, and they are nowhere near as cheap as what your insurance rates are.
What’s even more relevant is that you are keeping your teenager from developing their own driving and insurance records. That puts them at an extreme disadvantage when they look for separate insurance in the future.
No parent wants to pay more for auto insurance, and if you’re a teen looking for a separate policy, the rates might seem incredibly high for you. It’s crucial to take some time to contact various insurance agencies to find out quotes on different policies as well as quotes on adding a teen to your plan as a parent. Truly Insurance is available to provide you with information that can build your knowledge base and help you know what questions to ask your future insurer.