Adding your child to your car insurance is a wise decision and is a legal obligation. Your child needs insurance if they reside with you and will be operating a car that is registered to you or another family member. In essence, the least expensive choice is to add your child to your car insurance policy.
Insurance companies mandate that all licensed drivers in your household must be included in your vehicle insurance policy upon their license test. Moreover, most states prohibit driving without insurance, and anybody found in violation faces severe legal repercussions. Most teenagers cannot afford separate car insurance, so the best course of action is to designate them as a named driver on your policy.
However, if you don’t want to allow them to drive your cars, you may add them as an excluded driver instead. Make sure you abide by the written agreement you sign, which states that they will not be operating any of your covered cars. Furthermore, you may then add them as a named driver to your insurance if you decide later on that they can drive one of your cars.
Benefits of Adding Your Child to Your Car Insurance
There are a lot of benefits to adding your child to your car insurance, even though your premiums will definitely go up. The following are some typical benefits of adding your child as a driver on your car insurance policy:
Reduced rates for your adolescent
If your teen is eighteen or older and owns, leases, or finances a car of their own, they may be able to get a policy in their own name. However, 18-year-olds’ solo auto insurance is typically somewhat pricey. Your adolescent will probably save money by continuing on your coverage if they reside with you and if your name is also on their car.
Becoming eligible for new savings
Teen drivers can take advantage of many auto insurance reductions. By utilizing good student discounts, remote student discounts, and teen driving programs, you may be able to partially defray the expense of enrolling your teen driver.
Streamlined policy administration
Having a single policy for the whole home may simplify modifications, bill payment, and insurance document management.
Adding your child to your car insurance coverage may also offer educational opportunities. You might instruct your youngster about bill-paying techniques, automobile insurance, and the importance of making this purchase.
Disadvantages of Adding Your Child to Your Car Insurance
Rate increase
If you include your child in your policy, the cost of your auto insurance will go up significantly. You will be responsible for paying for them yourself if your kid is unable to pay the bills.
Liability
You may be held accountable, and your insurance premiums may go up if your child causes an accident while driving.
How Much Does Adding Your Child to Your Car Insurance Cost?
Generally, adding a child to your car insurance costs $2,718 annually. Moreover, your child’s premium would average $5,108 per year if they had their own coverage. It might be difficult and 47% more costly to get your youngster their own auto insurance coverage. For example, since many jurisdictions have laws prohibiting minors from entering into formal contracts, you will need to co-sign the insurance.
Factors That Affect Adding Your Child to Your Car Insurance Rates
Even if there are no specified child drivers on your policy, there are still a number of factors that might impact your rates for car insurance.
- Age: Compared to teens and those 20 and above, adult drivers with years of driving experience usually pay less for vehicle insurance.
- Coverage: Increasing the coverage on your insurance will protect you financially, but the cost will go up as well.
- Deductible: Compared to similar insurance with low deductibles, policies with large deductibles have cheaper rates.
- Driving history: Those with a history of collisions or moving infractions typically have higher insurance rates.
- Location: Cars located in areas with high theft rates or in places vulnerable to severe weather conditions typically have higher insurance prices.
- Car type: Luxury cars, SUVs, and convertibles frequently have expensive insurance rates.
- Safety and anti-theft devices: A lot of suppliers give discounts to cars with anti-theft devices and safety features like anti-lock brakes.
When calculating prices for vehicle insurance, some providers also take your credit history into account. Increasing your credit score might result in cheaper insurance premiums.
When Should You Add Your Child to Your Car Insurance
As soon as your child passes their driving exam, you should add them to your coverage. Your child does not need to be listed as a named driver on your policy, but it is still advisable to let your insurer know when they obtain their learner’s permit. By adding your child to your car insurance, you can avoid gaps between their test results and legal driving, ensuring a smooth transition for both parties.
How to Add Your Child to Your Car Insurance
When your child approaches driving age, it’s a good idea to take the initiative and look into insurance choices. When the time comes to add your child to your car insurance, make sure to follow these procedures.
Contact your insurance
Inform your insurance provider that your child is obtaining their license by contacting them. Notifying your insurance company about your adolescent’s permit status can help minimize coverage gaps between their driving test and policy coverage.
Obtain a price
To find out how much it will cost to add your child to your vehicle insurance coverage, ask your insurer for an estimate. Moreover, verify that the quote is for high liability limit coverage.
Shop around
To choose the best solution for your needs and budget, compare the rates and coverage offered by several insurers by getting quotations.
Add your child in the coverage
As soon as your child takes their driving test, contact your insurance provider to add them to your coverage. However, don’t forget to inquire about any reductions that might lower your insurance premiums.
Do a yearly re-shop
When it’s time to renew your policy, get rate estimates from many insurance companies each year. By doing this, you can keep your rates as low as possible while still getting enough coverage for you and your child.
In addition, your child needs car insurance coverage if they are using a motor vehicle. Many newly licensed drivers use their parents’ vehicles after passing their test, as they may not have the funds to buy a car of their own.
