What Happens If I Don't Add My Teenager To My Car Insurance?
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The 16th birthday is cause for celebration, mainly because it means your teen can start driving themselves around. But now you are probably wondering about the costs of adding your teen to your insurance policy, and asking questions like “what happens if I don’t add my teenager to my car insurance?”
You can both get into a lot of trouble if they drive your car or drive without insurance. In this article, we’ll discuss what happens if you don’t add your teen, and how to save on plans when you do.
Key Takeaways
Teens over 18 (or 19 in three states) can get their own policy but otherwise, they need to be added to a parental policy or be emancipated.
Adding a teen to an existing policy is cheaper than them taking out a new policy.
Adding a teen driver to your policy can increase premiums between 50% and 100%.
Do I Have To Add My Teen To My Car Insurance?
Most states require that you add a teen to your insurance policy when they become a new driver.
Tip: Check with your insurance provider about whether you need to add them when they have a learner’s permit or a full license.
Teenagers must have auto insurance whether they are driving their own vehicle or that of a family member. But there are two options:
- First they can be added to an existing family policy.
- Second they can get their own policy*
*Each state has a minimum age to get a car insurance policy. For all but three (where the minimum is higher) teens must be 18 to get a policy themselves. Barring that, younger teens must be legally emancipated.
If neither of those apply, you must add your teen to your policy for them to drive.
Adding A Teen Driver To Your Policy
When your teenager gets their license, they are not automatically covered by your existing policy even if they drive your car and live at home. However, adding a teen driver to your policy is a simple process that enables teens to safely and legally drive.
The table below offers some basic pros and cons to this option:
Pros | Cons |
Adding a teenager is easier than taking out a new policy | Driving behavior of teens can impact the cost of the family policy |
Adding teens is less expensive compared to taking out a new policy | Teenagers are not incentivized financially to reduce risky driving |
There are several discounts available | Teenagers cannot customize their policy separately |
Getting Your Teen Their Own Policy
Getting your teen their own policy is a useful way for someone who meets the age or other eligibility requirements to be independent and cut strings to other family members. However, it comes with pros and cons.
The table below offers some basic pros and cons to this option:
Pros | Cons |
Parents are protected against the driving behaviors of their teens | Not available to all teenagers |
Teens can learn how insurance works and build independence | Teenagers are not able to capitalize on things like multi-driver discounts |
It helps build a credit score | Insurers may not allow teens to purchase separate policies |
Teens are more personally incentivized to drive safely because it reduces their costs | Is more challenging and costly to set up |
The Cost Of Teen Car Insurance
The cost of teen car insurance depends on whether teens are included on the family policy or whether they’re on their own policy.
Consider this: in most states, prices for a 17-year-old male average 9% higher than prices for a 17-year-old female even if they are added to a policy.
This means the average car insurance rates for a 17-year-old male are over $7,000 annually but only $6,400 for a female.
Insurance companies calculate the cost of premiums based on the risk analysis for each driver which includes the likelihood of the insurance company having to pay a claim. The risk of having to pay a claim goes up when a driver has:
- A long commute
- A history of accidents
- Is young
- Has a poor credit score
- Is in a big city
All of these things can influence the premiums on any policy whether a teen is added to your policy or they take out their own. But given that teenagers have statistically high rates of accidents and limited other metrics that would otherwise counter the high rates of accidents, their premiums will be at the highest point when a teenager is 16 and slowly decrease until they reach 25.
Some of this cost can be modified with things like multi-person or multi-vehicle discounts, as well as insurance-company-specific discounts on safe driving habits for your teen or good grades.
Cost To Add Your Teen To Your Insurance Policy
According to the Insurance Information Institute, adding a teen driver to your policy can increase premiums between 50% and 100%.
The cost of adding a teen depends on several factors. For example: If you add a teen to your family policy, with full coverage for one year averages $5,455 in Colorado but only $2,810 in Idaho.
The cost of adding your teen to your policy depends on several factors such as:
- Their driving history (if any)
- Their age
- The type of coverage you want
- The state in which you live
- Their gender
- Their grades
Below is a table showing some average costs of a adding a teen to your policy based on age and state:
Age/State | Cost of Adding to a Parent Policy
(per year) |
16/Florida | $3,483 |
17/Florida | $3,169 |
18/Florida | $2,752 |
19/Florida | $2,143 |
16/California | $3,146 |
17/California | $2,832 |
18/California | $2,437 |
19/California | $1,628 |
16/Texas | $2,346 |
17/Texas | $2,073 |
18/Texas | $1,797 |
19/Texas | $1,528 |
Tip: Ask your insurance agent for quotes before adding your teen driver. Compare it to other companies. It might be cheaper to get a new family plan altogether.
Cost To Getting Your Teen A Separate Policy
The cost of getting your teen a separate policy depends on several factors such as:
- Their driving history (if any)
- Their credit score (if any)
- Their age
- The type of coverage
- The state in which you live
- Their gender
Below is a table showing some average costs of a teen getting their own policy based on age and state:
Age/State | Cost for an Independent Policy (per year) |
16/Florida | $9,456 |
17/Florida | $8,938 |
18/Florida | $7,778 |
19/Florida | $5,605 |
16/California | $8,398 |
17/California | $7,806 |
18/California | $7,007 |
19/California | $5,156 |
16/Texas | $7,965 |
17/Texas | $6,843 |
18/Texas | $6,159 |
19/Texas | $5,259 |
Why Is Teen Car Insurance So Expensive?
Teen car insurance is expensive because teenagers are new drivers and are considered risky drivers because they are statistically responsible for a disproportionate number of accidents and minor infractions such as speeding tickets. This makes them more costly to insure.
Accidents
According to the Insurance Information Institute, teen drivers represent only 5% of the number of licensed drivers on the road but they account for almost 9% of fatal car accidents.
Tip: Check with your insurance on discounts for “low mileage” for students who don’t drive often or when they go to college.
Alcohol
Alcohol risks are heavily associated with underage children which means that teen insurance policies are typically higher because of this.
According to the Insurance Information Institute, teen drivers between 16 and 25 account for 43% of fatal car accidents impaired by alcohol.
Gender
If you have a male teenager in your home, the cost will be higher for them compared to a female because male teenagers are more likely to utilize unsafe driving tactics or get involved in car accidents.
Male drivers account for 66% of teen crash fatality rates compared to females.
How To Add A Teenager To Your Car Insurance Policy
Adding a teenager to your car insurance policy is a fairly simple process that does not take more than a few days. Once it is complete, and the new premium has been paid, your teenager is insured.
Step 1
Contact your insurance agent or provider. Some companies let you add a new driver online but others require you call or visit your agent in person.
Step 2
You will need specific information about the teen, including
- Name
- Birth date
- Social security number
- Occupation
- Information about their license and history of accidents or tickets
Step 3
Your insurance agent will give you a quote but feel free to request quotes from other companies too.
Step 4
Once added to an existing policy, you and your teen will need to sign paperwork. You should see an adjusted price on your premiums immediately.
Tip: You can increase your deductible to reduce the premiums after adding your teen driver to your insurance policy.
How To Save Money On Car Insurance For A Teen
There are several ways to save money on car insurance for a teen.
Good Student Discounts
One of the most common is a discount based on academic performance. Teenagers who are still in high school can get slightly reduced insurance coverage based on the GPA they maintain.
Safe Driving Discounts
There are several safe driving discounts available for students depending on the company which usually require participation in a safe driving course and an app or device that plugs into the phone to monitor driving behaviors.
- Nationwide’s Smart Ride Program offers instant savings of 10% off your policy for a teenager and up to 25% off if your teenager only drives their vehicle on a limited basis.
- Progressive’s Snapshot Program provides discounts for teen drivers who avoid driving on weekends between 12 a.m. and 4 a.m., as well as those who utilize safe driving tactics.
- State Farm’s Steer Clear Program offers discounts for teens who don’t get moving violations or accidents for three years.
What Happens If I Don’t Add My Teenager To My Car Insurance?
If you have a teenager in your house who operates your vehicle, they legally must be listed on your auto policy.
If you do not add your teen to your car insurance, and they get in an accident using your car, your insurance company could cancel your coverage and deny you future coverage. In other cases insurance companies might consider this insurance fraud if they believe you failed to add your teenager on purpose.
As for your team, if they are caught driving without proper insurance they can have their license suspended or revoked. they might also be designated a high risk driver which could cause insurance rates to increase and insurance companies to deny coverage altogether.
FAQs
How long do you have to add a new driver to your insurance policy?
A new driver cannot drive your car until they are added to your policy. Your teenager cannot drive a car of their own until they are insured either.
Who has the cheapest car insurance for teens?
State Farm is considered one of the top car insurance companies for teens, with rates 30% below the national premiums. But Geico has several discounts too.
Can an insurance company force me to be added to an insurance policy?
Each state has minimum age requirements for teenagers, at which point they can legally take out their own policy. Below that age, teens must be legally emancipated. However, you won’t be forced to be added but without insurance you cannot legally drive.
Sources
⇅- State Farm – Steer Clear
- Nationwide – SmartRide
- Progressive – Snapshot
- Insurance Information Institute – Facts & Statistics: Teen Drivers