The day has come; your baby is growing up. You knew this dreaded day would arrive. Now the time has come to let your child behind the wheel of your automobile and teach them to drive.

So many questions fill your mind about their safety, ability, and how they will handle the responsibilities of driving. One of the most important things you must consider before you hand over the keys is whether they will be covered under your insurance policy or not. The answer is a bit confusing and can cost you if you do not act according to the laws that exist.

 

When do I add my teen driver to my policy?

 

The easy answer is as soon as they start to drive. The more complicated answer is that it varies depending on which state you live in. In North Carolina, you don’t need to add your teenager to your policy until they are issued their license; while they have their learner’s permit, they are covered under your policy. In other states like Illinois, New York, and Virginia a driver with a learner’s permit must be added to the policy before the teen can legally drive that vehicle.

 

The smart solution is to talk to your insurance agent. They will be aware of state laws as well as their company’s requirements when it comes to insurance when you are teaching your teenager to drive. It is to your benefit that you make your insurance company aware you have a teen behind the wheel. If you do not notify them, and you were required to, then any accident or violation your teen has, falls on you, because they will not be covered under your policy.

 

How much should I expect to pay for adding my teen?

 

The most expensive drivers on the road are over the age of 65 and teenage drivers. For the teenager, they are three times more likely to be involved in an accident than a 20-year-old driver is. This scary statistic results in increased premiums. Parents, prepare yourself, this increase will be astronomical. In many states, your increase can be 150-200% over what you pay without your teen on the policy.

 

Getting your teen their own policy isn’t any better. In fact, they could pay even more than if you added them to your policy. This is due to the discounts you have on your policy that bring your premium down. Discounts like:

• Multi-car.
• Bundling with your Home or Renter’s insurance.
• Your safe driving record.
• Customer loyalty.

There are ways insurance companies help teens to lower their rates. Your teen does have to do their part. Most companies offer these discounts to teen drivers:

Good student. -If your child maintains a B average in school. Insurance companies require regular verification. If they fall below the standard, the discount will no longer apply.

Clean record. -If your teen receives no moving violations and remains accident-free.

Driver’s education course. -These courses are offered through various sources; even some insurance companies offer them.

 

When do I remove my teen driver from my policy?

 

There is no magic age when you should take your child off your policy. Some believe the benchmark is 25, but as long as the child lives in the same household, they can be kept on the policy indefinitely. Even if they are away at college. If they are living on campus, you can keep them on your insurance policy.

It is the judgment call of the parent and the child. When the child, who is now an adult, is independent then you may choose to have his or her purchase his or her own policy. It is really a financial decision. If they live in the same house and it is cheaper to keep them on your policy, then there is no law forbidding that.

 

A final word of caution; don’t try and hide your teen from your insurance company. Failure to notify them that you have someone driving the vehicle they are insuring could cost you dearly. Yes, adding a teen to your policy will be expensive, but consider the alternative. If they are in an at-fault accident, then you may pay out more to the other party in the accident and to repair your car than you would have if you added them in the first place.

 

To learn more about automobile insurance solutions for your teen, or additional insurance options, contact the experienced folks at Protective Agency at (877) 739-9367. Our licensed, trained and non-pushy insurance team will be happy to answer any questions you have.