Adding Your Child to Your Car Insurance: Do You Have to Do It?

When your teen becomes a licensed driver, they must have auto insurance — and it’s generally cheapest to add them to your auto policy.

Emily Guy Birken
Emily Guy Birken
  • Plutus Award winner

  • 12+ years writing about insurance and personal finance

Emily is a widely recognized expert on personal finance and has authored several personal finance books. She’s a frequent guest on national and regional media.

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Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

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Konstantin Halachev
Data reviewed byKonstantin Halachev
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVP of Engineering & Data Science
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

Updated November 20, 2024

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Cheapest recent rates

Drivers have found policies from Mile Auto, Anchor, Kemper RSVP, and more, for rates as low as $37/mo. through Insurify

*Quotes generated for Insurify users within the last 10 days. Last updated on November 20, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from November 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

*Quotes generated for Insurify users within the last 10 days. Last updated on November 20, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from November 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

Teens need more than just driving lessons and a license before getting behind the wheel — they also require auto insurance in most states. In most cases, this means adding your child to your policy.

Adding any driver to a car insurance policy will increase your rates, but this is especially true with a teen driver since they have less experience on the road and are more likely to engage in risky driving behavior. But you may be able to qualify for some discounts that can help keep costs down.

Here’s what you need to know about adding your child to your car insurance.

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Why you should add your teen to your policy

Every state but New Hampshire requires drivers to carry a minimum amount of liability coverage before getting behind the wheel. While it may be possible for your teenager to get their own policy, premiums are typically cheaper if you add them to your policy instead.

If your teen is still learning to drive and not yet licensed, you may still need coverage. Check with your state laws about when it’s recommended to add a teen driver. And before letting your teen get behind the wheel, be sure to let your insurer know. Neglecting to do so could put you at financial risk if your teen causes an accident.

Pros and cons of adding a teen driver

Before adding a teen to your policy, be sure to weigh some of the benefits and drawbacks.

Pros
  • Lower premiums than if your teen has their own policy

  • Multi-vehicle discount if your teen driver has a separate car

  • Discounts for teen students with good grades

Cons
  • Increased premiums due to high risk

  • Teen driving violations can raise your rates

  • Out-of-pocket costs if your teen causes an at-fault accident with damages exceeding your liability limits

Cost of adding a teen to your policy

Adding a teen driver to your car insurance can increase your premiums significantly since age is one of the most important factors that affect auto insurance rates.

Not only are young drivers typically more likely to cause car accidents than their older counterparts, but they’re also more likely to be involved in fatal traffic accidents. If your teen gets any traffic violations on their driving record, your insurer may raise your premiums.[1]

The type of car your teenager drives can affect your rates, too. Choosing a safe car will protect them on the road and help reduce insurance premium costs.[2]

Unfortunately, there’s no way around some of these extra costs when you add a teen driver to your policy. But shopping around to find the best rates for families with young drivers and asking about discounts can help.

Consider these insurance companies as you start to compare rates:

Insurance Company
Average Quote: Without Teen
Average Quote: With Teen
Root$98$196
USAA$100$216
Erie$95$230
GEICO$119$243
State Farm$116$260
Metromile$120$268
Mile Auto$107$274
Safeco$126$298
CSAA$142$312
Allstate$138$319
Progressive$143$337
Clearcover$144$341
Mercury$154$377
Elephant$178$385
American Family$174$389
Nationwide$186$417
National General$172$438
Shelter$199$448
Liberty Mutual$205$455
State Auto$196$464
Travelers$197$470
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

How to add a teen driver to your policy

If your child is about to get their driver’s license, here’s how to add them to your policy:

  • illustration card https://a.storyblok.com/f/162273/150x150/8329623678/money-96x96-blue_025-online-money.svg

    1. Request quotes

    Your current insurer may or may not be the best option for coverage with a teen driver. Shop around to find the right insurance at a price you can afford.

  • illustration card https://a.storyblok.com/f/162273/150x150/6e8574d854/insurify-icons-auto-gold-96x96_013-family.svg

    2. Determine your insurance coverage needs

    Adding a new driver is a good time to consider increasing liability coverage levels or other coverage options to protect your teen and your wallet.

  • illustration card https://a.storyblok.com/f/162273/150x150/91ba6cf35a/insurify-icons-auto-orange-96x96_045-document.svg

    3. Gather necessary information

    You’ll need to provide your teen driver’s name, date of birth, Social Security number, and vehicle information to add them to your policy. If your teen lives away at school, you may also need to provide the address where they keep their car temporarily.

  • illustration card https://a.storyblok.com/f/162273/x/7955361cf0/customer-support-1.svg

    4. Contact your insurer

    Once you’ve chosen an insurer, get in touch with your insurance agent or go on your insurer’s website to add your teen driver. If you’re switching insurers, make sure your new policy is active before you cancel your old one to avoid a lapse in coverage.

  • illustration card https://a.storyblok.com/f/162273/150x150/1d8803fded/credit-and-loan-96x96-blue_019-calendar.svg

    5. Pay your new premium

    If you pay your premiums monthly, you’ll notice your next month’s premium could be higher to account for the new driver on your policy. But if you pay your premiums up front or switch insurers, you may need to pay right before coverage begins.

  • illustration card https://a.storyblok.com/f/162273/100x100/8fc5f44bef/drivers-license.svg

    6. Get proof of insurance for your teen

    Every state except New Hampshire requires drivers to carry car insurance, and your teen will need proof of coverage in case they get pulled over. Make sure they either have a digital or paper copy of their insurance card.

When should your child get their own car insurance policy?

Insurance companies generally require all drivers insured on a policy to live in the same household. While some insurers offer exceptions for a college student who is away at school, once your child moves out of your house, they’ll typically need their own policy.

Car insurance companies may also require your child to get their own policy if they have a car registered and titled in their own name. Some insurers require the primary name on the insurance policy to match the name on the vehicle.

But even if your child still lives with you or drives a car titled in your name, you may still choose to remove them from your insurance policy if they’ve shown they can’t drive safely. A driver on your policy who has caused accidents or moving violations could increase your insurance premiums significantly or even cause you to lose your coverage altogether.[3]

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How to lower your car insurance rates with a child on your policy

Though adding a teen to your insurance policy may increase your rates, parents have options for reducing insurance costs with a teen driver.

Shop for a better rate

Auto insurance companies use a number of factors to set your rate, including driving history, age, marital status, credit history, and ZIP code. Shopping around and getting multiple quotes is the best way to find the cheapest rates with a teen driver.

Look for discounts

Many insurers offer discounts geared toward teen drivers. Good student discounts lower rates for teen drivers who maintain a certain GPA, while student-away-at-school discounts help you save when your teen is living away from home during the school term.

Adjust your deductibles

Your deductible is the amount you pay before your insurer kicks in any payment for a claim. Raising your deductible lowers your premium costs, which can make coverage more affordable. Just remember that you’ll have to pay the increased deductible if you make a claim. Those additional out-of-pocket costs could hurt your budget after an accident or other claim.

Buy a safe car

Safer cars are cheaper to insure than cars without certain safety features. Your insurer may even offer discounts for certain safety features, such as anti-lock brakes or blind-spot detection.

When shopping for a safe car for your teen driver, the Insurance Institute for Highway Safety (IIHS) recommends that parents look for the following qualities:

  • Larger than 2,750 pounds (light vehicles may not provide enough protection in crashes with other vehicles)

  • Appropriate horsepower relative to weight

  • Standard automatic emergency braking

  • Dry braking distances of less than 145 feet from 60 mph

The IIHS also offers a list of recommended safe cars for teens.

Safe driving practices

Driving safely is one of the most effective ways to get and keep low auto insurance rates. Safe driving practices help prevent accidents and citations for traffic violations.

In addition to teaching your teen how to drive safely, you may also want to enroll them in a driver training course or defensive driving program. Many insurers offer discounts to teens who have successfully completed these types of classes.

Telematics programs

Telematics programs use plug-ins or mobile apps to measure risky driving behavior, like speeding and sudden braking. Many insurers offer an initial discount to policyholders for signing up for a telematics program. Safe driving is generally rewarded, but reckless driving, like speeding, could raise rates.

Adding a child to your insurance FAQs

Before your teen gets their license, make sure you consider the following common questions about adding a child to your auto insurance.

  • Do your parents have to add you to their car insurance?

    A parent’s insurance doesn’t automatically cover you as a newly licensed teen driver, which means they must either add you to their policy or you must purchase your own policy to legally get behind the wheel. But it’s typically much cheaper for your parents to add you than for you to get your own policy.

  • Can someone not on your insurance drive your car?

    You can give someone permission to drive your car, but if the driver is a teen who lives in your household, you may not be covered if they’re not on your policy. If your child uses your car and isn’t covered under your policy, your insurance company may deny a claim if they’re in an accident.

  • Do you need to add your child to your car insurance if they have a permit?

    Yes, you need to add your child to your insurance once they have a learner’s permit. This is something you should discuss with your insurance agent or insurer before your teen applies for the permit. It’s also a good idea to check your state laws.

  • What is the cheapest insurance for a 16-year-old?

    COUNTRY Financial is generally the cheapest car insurance company for 16-year-olds, with monthly liability rates averaging $19. But the cheapest insurance for your 16-year-old driver will depend on a number of factors, including where you live, what kind of car your teen drives, and even their grade point average. To find the cheapest option, make sure you shop around and compare quotes.

Methodology

Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.

Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).

Liability-only premium averages correspond to policies with the following coverage limits:

  • Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
  • Property damage limits between $10,000 and $50,000
  • No additional coverage
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
  • Comprehensive coverage with a $1,000 deductible
  • Collision coverage with a $1,000 deductible

Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.

Sources

  1. Insurance Institute for Highway Safety. "Teenagers."
  2. Insurance Institute for Highway Safety. "Safe vehicles for teens."
  3. Insurance Information Institute. "Do auto insurance premiums go up after a claim?."
Emily Guy Birken
Emily Guy Birken

Emily Guy Birken is a former educator, lifelong money nerd, and a Plutus Award-winning freelance writer who specializes in the scientific research behind irrational money behaviors. Her background in education allows her to make complex financial topics relatable and easily understood by the layperson.

Her work has appeared on The Huffington Post, Business Insider, Kiplinger's, MSN Money, and The Washington Post online.

She is the author of several books, including The 5 Years Before You Retire, End Financial Stress Now, and the brand new book Stacked: Your Super Serious Guide to Modern Money Management, written with Joe Saul-Sehy.

Emily lives in Milwaukee with her family.

Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

Featured in

media logomedia logo
Konstantin Halachev
Data reviewed byKonstantin HalachevVP of Engineering & Data Science
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVP of Engineering & Data Science
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

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