As parents, watching your child get behind the wheel for the first time can feel exciting and nerve-racking. But while your teen learns to become a responsible driver, it’s important for you to understand how your auto insurance will be affected. Adding a teen driver to your auto insurance policy may lead to an increased premium; however, it’s necessary to protect your family financially. For your teen, it’ll also likely be the most affordable option.
Teen Driver Auto Insurance
At 15 ½, teens may begin the process of obtaining an instructional permit in California. During this stage, they may be covered as a “permit driver” under your current auto policy. This is because your child’s permit requires them to drive with a licensed supervising driver and prohibits them from driving alone. However, as with any insurance coverage, it’s best not to assume coverage is automatically applied. Instead, be sure to speak with your insurance agent or provider to learn of any requirements they may have.
After your child passes their driving exam and receives their license, they’ll no longer be covered as a permit driver. At this stage, you’ll need to add them to your current policy as a “listed driver,” or they’ll need to purchase their own auto policy. To add your teen driver to your auto insurance, you’ll typically have to call your insurance provider and have the following available:
- Your child’s name
- Their date of birth
- Their driver’s license information
California requires all licensed drivers to have bodily injury liability coverage ($15,000 per person / $30,000 per accident) and property damage liability coverage ($5,000).
Should Teen Drivers Purchase Their Own Auto Insurance?
Your rates will likely increase when adding a driver to your auto policy. To prevent this, it’s understandable why some parents may elect to have their children purchase a separate policy. However, driving experience is a rating factor in California, meaning teen auto insurance is often more expensive than for other groups. Because of this, it’s unlikely they’ll find a more inexpensive stand-alone policy.
There are some benefits of adding a teen driver to your auto insurance. Common advantages include:
- Multiple-vehicle discount
- Good student discount
- Simplified policy management
- Ensuring they are covered when driving household vehicles
Why Is Teen Auto Insurance So Expensive?
According to the CDC, motor vehicle crashes are the second leading cause of death for U.S. teens. Due to their lack of driving experience and the likelihood of being involved in an accident, teen drivers experience higher insurance premiums. However, not only is auto insurance legally required, but it will also help prevent financial strain after an accident. Luckily, there are ways to save when adding a new driver to your policy.
How to Save When Adding a Teen Driver to Your Auto Policy
Although adding your child to your policy will increase your rates, there are ways to offset the price change. Taking advantage of any auto insurance discounts available is highly recommended to help you save. Here are a few ways to potentially save when adding a new driver to your policy:
- Good student discount: Most insurance companies have a good student discount for young drivers performing well in their studies. Discounts tend to apply to students with at least a B average.
- Away for school discount: Depending on your carrier, your young driver may be eligible for a student away discount. This applies to students away at school who won’t be routinely operating a household vehicle.
- Promote safe driving: It’s essential always to practice safe driving, as accidents and infractions could lead to increased rates. Young drivers can also receive a good driver discount if eligible.
- Multi-vehicle discount: By adding additional vehicles under your policy, you could receive a multi-vehicle discount from your provider.
Auto Insurance Tailored for Californians
At Orion Indemnity, we pride ourselves on being designed for Californian drivers. We offer a wide range of personal auto insurance coverages for you and your family’s needs. No matter the topic, our highly knowledgeable agents can assist you by answering any questions you may have. To learn more about how Orion Indemnity can help you and your teen driver be safe on the road, give us a call today at (833) 336-7466.
The information in this article is obtained from various sources and offered for educational purposes only. Furthermore, it should not replace the advice of a qualified professional. The definitions, terms, and coverage in a given policy may be different than those suggested here. No warranty or appropriateness for a specific purpose is expressed or implied.
