It’s a fact of life that the highest car insurance rates in the U.S. are charged to drivers over the age of 65 and those under the age of 20. The reason for this is simply because drivers in these two age groups are involved in more accidents and file more car insurance claims than anyone else.

When it comes time for your teen driver to get insurance, you have a choice of two ways to do this:

  1. Have your teen get an insurance policy of their own
  2. Add your teen driver to your car insurance policy

With either of the two above choices, you’ll find that insuring a teen driver is expensive because of the heightened risk the insurance company is taking. In most cases, putting your teen driver on your policy will be less expensive than having them get their own policy. Let’s go through some things to know about the process.

Adding Your Teen to Your Car Insurance Policy

  1. Each US state has its own requirement as to when a teen driver is required to get car insurance. In North Carolina, those driving while on a learner’s permit are automatically covered by their parents’ policy until such time as they are issued a provisional license. In order to qualify for a license they must have insurance, either their own or being added to their parents’ policy.
  2. While it typically costs less to add a teen to your policy than for them to get a policy of their own, be prepared for a significant price increase on your policy price. Sometimes this may be as much of an increase as 100% or more.
  3. A number of student driver discounts may be available for your teen driver such as one for maintaining a high average in school grades or completing a driver’s safety/defensive driving course. You’ll also save by sharing a vehicle with your teen driver rather than getting him or her their own vehicle.
  4. Some insurers may have less expensive insurance for teen drivers than your current carrier. Check options with other insurers to make sure you’re getting the best deal.
  5. Your teen can stay on your car insurance even after they are no longer a teen as long as they reside in your household. Even when away at college they can be on your policy.
  6. Make sure your insurer knows you have a teen driving your vehicle.