Auto
What Should I Know About Adding a Teen Driver to My Policy?
The short answer
Adding a teen driver to your auto policy typically increases your premium, and you generally need to notify your insurer once they're licensed, not just when they start driving your car regularly.
Adding a teen driver to your auto policy typically increases your premium, and you generally need to notify your insurer once they’re licensed, not just when they start driving your car regularly.
Why it matters
Insurers price risk in part based on driving experience, and a newly licensed teen represents more risk than an experienced driver. That usually means a premium increase once they’re added to your policy. Some households wait to make that change until a teen is driving daily, but most policies require notification once a household member is licensed, whether or not they’re already behind the wheel of your car.
What affects the answer
- Which car they’ll primarily drive. Some insurers price based on which vehicle in the household a teen driver is most likely to use.
- Driver’s education and good student discounts. Many companies offer discounts for completed driver’s education courses or maintained grades, which can offset some of the increase.
- Whether they’re added as a listed driver or excluded. In some cases a household member can be formally excluded from coverage, though that also means no coverage for them if they do drive.
In Missouri
Missouri requires drivers to carry at least the state’s minimum auto liability limits. When a teen is added to a policy, it’s worth reviewing whether those minimum limits still make sense for the household or whether higher limits are worth considering given the added driver.
An example
A family in Independence added their newly licensed 16-year-old to their policy and saw a noticeable premium increase. Comparing discounts for driver’s education and good grades across a few available options helped offset part of the change.
Questions worth asking
- When exactly do I need to notify my insurer once my teen is licensed?
- Are there discounts available for driver’s education or good grades?
- Does it matter which car in the household my teen primarily drives?
- Should my liability limits change now that there’s an additional driver?
Information on this website is general in nature and is not a complete description of any insurance policy or every coverage option that may be available. Coverage availability, terms, conditions, limits and exclusions vary by insurer, policy and individual circumstances. The issued insurance policy and applicable endorsements control coverage. Beacon Point Insurance Group may provide information regarding available insurance options and discuss coverage considerations based on information you provide, but customers are responsible for selecting the carrier, coverages, limits and deductibles they wish to purchase. No insurance coverage is bound, changed, or canceled through this website unless confirmed by Beacon Point Insurance Group or the applicable insurer.
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