When to Add a Teenager to a Car Insurance Policy
Most drivers start out getting behind the wheel in their mid to late teens, since most states allow you to get a license at age 16 or 17. Because teenage drivers are inexperienced, insurance companies routinely jack up insurance rates if you add a teen driver to your auto insurance policy. Knowing when it's best to add a teen driver may save you hundreds of dollars a year in insurance costs.
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When They Get Their License
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Teens legally can drive before they have a full license as long as they've met the requirements for getting a permit. Having a permit doesn't always mean you immediately have to add a teen to your insurance policy. Insurance follows a vehicle, not the driver, and in some cases, insurance companies extend coverage to those with permits as long as you've provided permission to drive the vehicle -- some companies give coverage only to licensed drivers. Wait until the teen has a full license to add him to your policy if you can. It's at this point that he can drive without you and therefore can get into more serious situations.
When Required by Law
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Nine states require you to add teen drivers to your policy when they have a permit, as the Insure website points out. In these states, you can't wait until the teen has a full license to get them covered. These states include West Virginia, Illinois, Indiana, Virginia, Maryland, Pennsylvania, New York, Ohio and North Carolina.
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When They Are a Primary Driver for You
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You should add a teen driver to your insurance policy any time they do most of your driving for you. A good example is if you cannot drive yourself for health reasons and the teen routinely drives you for errands, work, medical appointments and pleasure events. Under this circumstance, the teen need not be a relative. You simply need to show the insurance company why you want to add the teen as a driver -- that is, you must demonstrate your insurable interest.
Considerations
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Although adding a teen to your insurance policy is the cheapest way to go in most cases, it isn't the only option. You also can have the teen get her own policy, although this usually requires that the teen be on the title for the insured car, says Baron Insurance Group. Additionally, in some circumstances, it isn't truly necessary to add a teen to your insurance. For instance, if you live in a very urban area where there are subways, taxis, trolleys and trains available, your teen may not really need to drive and be on your policy. In this case, it makes more sense to rely on the lender and permission clauses in your policy and let the teen be an occasional driver.
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References
- Insure: When to Add Your Teen to Your Car Insurance Policy; July 2009
- Car Insurance: Is It Necessary to Add a New Teen Driver to My Insurance Policy?
- Insurance.com; If Someone Borrows My Car, Are They Covered Under My Auto Insurance?; September 2009
- Baron Insurance Group: 3 Common Car Insurance Questions About Teens
- Photo Credit Jupiterimages/Brand X Pictures/Getty Images
