Kids and Driving: What Parents Need to Know About Auto Insurance

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Kids and Driving: What Parents Need to Know About Auto Insurance

A teenager earning their driver’s license is a rite of passage into adulthood, but it also means an increase in insurance premiums to receive adequate coverage. While this may seem stressful, being prepared and learning your auto insurance options can help make a difference in what you pay.

Do I have to add my child to my car insurance?

If your child obtains a driver’s license and lives in your household, they will need to receive auto coverage. Since minors cannot get their own car insurance policy, parents or legal guardians are responsible for adding the child to the family car insurance policy.

Adding a teenage driver to your policy will raise your policy’s premiums. Younger drivers are often considered to have a higher risk of getting into accidents or causing property damage, which results in a higher premium. As they get older, the premium rate will go down. In the meantime, parents should prepare for the higher insurance costs and learn about what discounts are available.

For example, some car insurance companies offer good student discounts, which provide a lower rate to students with high grades. It’s always worth asking an insurance agent what options are available to you and the young drivers on your policy.

Is it cheaper to be on your parent’s car insurance?

As a minor, teens don’t have many other options besides being on their parent’s insurance. However, once a student goes off to college, they might consider getting their own car insurance policy.

Sometimes staying on a parent’s insurance policy can lead to better premium rates. If the student moves away for college and doesn’t take any family vehicles, there is also the possibility of getting a distant student discount.

However, if a student has regular access to a family vehicle, they should receive adequate coverage from their parent’s insurance policy. Otherwise, the family risks being denied coverage if the unlisted driver gets into an accident.

When should your child get their own car insurance?

There are a few factors to consider when deciding it’s time for your child to get their own car insurance. Here are some aspects to think about:

  • Who owns the vehicle: If the student is the sole owner of their vehicle, they can purchase a car insurance policy since parents can’t insure a vehicle they don’t at least part-own.
  • After graduation: High school and college graduation is an excellent time to review who is going to use the family cars and who needs to stay on the insurance policy.
  • Child’s financial situation: Sometimes, parents decide to continue insuring their child until they get employment. This could also give the student time to build a credit score, leading to better premium rates.
  • Parent’s financial situation: Parents should consider their financial plans for the future. It may not make sense to pay for your child to be on your insurance policy, especially if they can afford it by themselves.

The right time to remove a child from the family car insurance policy is different for everyone. Families should consider sitting down to discuss their insurance options to determine what is best for the future. It may be helpful to get in touch with your insurance agent to find the best course of action.

Ask an independent insurance agency

Independent insurance agents can assist your family by discussing available insurance options, comparing terms, and finding the best value. They are a valuable resource when adding or removing drivers from your car insurance policy.

If you are looking for an independent insurance agency near Stuart, FL, look no further than Gambale Insurance Group. We’re dedicated to helping you find the right auto insurance coverage for your situation. If you want to discuss your auto insurance needs, contact us at 772-223-6007 or request a quote online.