One of the most frequently asked questions by parents of younger teens is whether they should add their children to their insurance policies. In most cases, it’s a personal decision, but you’ll want to weigh a few crucial factors.
In this guide, learn when to add your teen to your existing auto insurance coverage, tips to help you save money, the steps for adding your teen to the policy and essential considerations for getting coverage that suits your family’s needs.
When Should You Add a Teen to the Driver Policy?
Timing is crucial when deciding when to include a teen in your auto insurance policy. You want to add them only when it’s necessary. In Pennsylvania, there is no requirement for a driver’s permit insurance if the teen is driving with an insured adult’s supervision. It becomes mandatory when they start driving on their own. Then, you may add them to your existing coverage or purchase a new driver insurance policy.
Failing to comply with the law can result in legal sanctions. Also, you may have to cover all accident-related expenses, including medical bills, injury liability and property damage.
Step-by-Step Guide to Adding a Teen to Your Driver Policy
Here’s how to add a teen to your driver policy:
- Contact your Strock Insurance agent to help you find the ideal coverage.
- Gather all the necessary paperwork to start the process. These may include your teen’s driver’s license and other identification documents.
- Carefully review the contract. If you have any questions, call your agent for clarification. You must understand all the terms conditions before signing.
- Sign the insurance contract, attach all relevant documents and send them to the agent for processing.
- You will receive confirmation of the complete process — it’s that simple!
Tips for Adding a Teen to Your Insurance Coverage
Here are five helpful tips when adding a teen to your insurance policy.
1. Ask Your Insurance Carrier About Insurance Requirements
Call your insurance policy carrier or local independent auto insurance policy agent. Insurance requirements change frequently, so it’s best to learn what’s new. Ask when the policy carrier requires you to add your teen to your policy, such as when the teen gets their learner’s permit.
2. Review the State Teen-Driving Law
Each state has different requirements for teen drivers and teen driving insurance policies. For instance, do you need insurance with a learner’s permit? As we mentioned earlier, teens in PA with learner’s permits who drive supervised by insured adults do not need separate insurance policies. However, car insurance is necessary when driving solo and without guidance. Again, laws vary nationwide, so ensure you understand your responsibilities.
3. Research Teen-Driver Insurance Options
Though adding your teenager to your driving policy might make sense, it’s worth seeing if a limited policy is a better alternative. For instance, will your teen drive rarely, such as when home from college? You might qualify for a reduced rate from a different carrier. Plus, if your teen drives a “clunker,” a higher deductible than you have on your insurance policy could be a better bet.
4. Search Annually for Better Insurance Rates
Every year after your teen gets their driver’s license and keeps a solid driving record, shop around for a better rate on car insurance. Don’t be afraid to contact your local insurance agent to see if you can get a lower amount. Even a few dollars a month adds up in a year. Every 12 months of safe driving could mean more money in your pockets.
5. Let Your Child Contribute
One last piece of advice on teen car insurance is to have your teen pay at least part of the premiums with earnings from a part-time job or birthday money. Teenagers who have some “skin in the game,” so to speak, tend to take their roles as drivers more seriously.
Financial Considerations When Adding a Teen to Your Insurance Policy
Getting auto insurance for your teenage child can impact you financially, so it’s best to consider the following.
- Understand insurance rate changes: Insurance premiums can rise due to changes in interest rates, inflation and risk levels. Review your policy to know your rights.
- Determine how much coverage you need: You can purchase different types of coverage, each with different rates. Assess your needs and choose a suitable policy. You can seek help from a professional to determine how much coverage to purchase.
- Consider the teen’s gender: There are disparities in premiums based on the teen’s gender. Typically, male teens attract higher premiums than females, but it’s vital to research. Some states, such as PA, ban such comparisons.
- Add the teen to your policy: Purchasing separate coverage for your child is usually more expensive. Plus, you may still have financial responsibilities for a child under 18, even if they have an individual policy. You only need separate coverage if your child has already racked up tickets, been involved in accidents or is raising the rates on your family policy.
What Insurers Consider When Adding Teens to Insurance Policy
Here are six crucial things insurance providers consider when adding teens to their parents’ existing auto insurance policy:
- The teen’s age
- The teen’s safety record
- The teen’s driving experience
- The vehicle type, age and overall condition
- Driving duration and distance
- Primary driving location
How Can You Save on Your Car Insurance Policy?
Here are five ways you can save on your teen’s auto insurance policy:
- Delay getting the insurance: Only add your teen when necessary, like when they start driving independently.
- Get the right car: Check with the insurer to know how much it will cost to insure different vehicles before purchasing one for your teen.
- Look for discounts: Some insurers offer discounts for good students, safe drivers, low-mileage drivers, trainees and families. These can lower your premiums.
- Consider usage-based insurance: If your teen is unlikely to drive frequently, purchase a usage-based policy like pay-per-mile insurance.
- Alter your insurance policy: Remove non-essential coverage to reduce costs.
Get Teen Auto Insurance With Strock Insurance
Strock Insurance provides the best coverage by prioritizing our clients’ needs. We help families in Central Pennsylvania understand the available options and how they can benefit from each. Do you need auto insurance for your teen? Contact us now to speak with an agent about finding the best rates for your new driver.
