When Do You Add Your Child To Car Insurance

If your child has a driver's license and lives in your home, they will almost certainly need to be added as a driver to your policy.

3 min read
By Prerna
When Do You Add Your Child To Car Insurance
Photo by Collins Lesulie / Unsplash

If your child has a driver's license and lives in your home, they will almost certainly need to be added as a driver to your policy. As a minor, your child will be unable to obtain their policy. If your child lives in the household and drives a vehicle you own, they must remain on your policy regardless of age. Still, it is also financially beneficial in many cases due to discounts you may be eligible for. When your child moves out on their own, they may be able to remain on your policy or must obtain their policy, depending on the criteria of your state and insurance provider.

While some people are concerned about the rising costs of insuring a young driver, the price increase is for a reason. Drivers aged 16 to 24 are more likely to be involved in a fatal car accident, skip the seatbelt, and get behind the wheel after using substances, so insurance companies charge higher rates to account for this risk. On the other hand, Premiums tend to fall as drivers get older.

Advantages of including your child on your car insurance policy

Although you will most likely see an increase in your premiums when you add your child to your policy, there are advantages. The following are some of the most common benefits of including your child as a driver on your auto insurance policy:

Lower premiums for your child

If your teen is 18 or older, they can buy a policy in their name (assuming they own, lease or finance their car). Car insurance for 18-year-olds on their own, on the other hand, is typically quite expensive. If your teen lives with you and has your name on their vehicle, they will most likely save money by staying on your policy.

Qualifying for new discounts

Teen drivers can take advantage of a variety of car insurance discounts. By taking advantage of good student discounts, distant student discounts, and teen driving programmes, you may offset some of the cost of adding your teen driver.

Simplified policy management

Having your entire household covered by a single policy may make it easier to make changes, pay bills, and keep track of your insurance documents.

Gaining coverage for your teen

Adding your teen driver helps to provide coverage in an accident. If your child is not listed as a driver on your policy but regularly drives one of your vehicles, coverage may be denied in the event of an accident.

Adding your teen to your car insurance policy may also present a learning opportunity. You could teach your child about car insurance, why it's essential to buy it, and how to pay bills.

When do you add your adolescent or young adult to your car insurance policy?

You should add your teen or young adult child to your policy as soon as they obtain a driver's licence. You should contact your insurance provider before your child begins driving to be safe. Some employers may require your child to be added when they obtain their learner's permit rather than their driver's licence.

Some states, such as Florida, provide "risk alert" reports to insurance carriers. These reports notify them of any licenced operators who have the insured's address on their driver's licence. Following receipt of risk alert reports, pages typically contact policyholders and request one of the following:

  • That the unlisted operator is added to the policy.
  • Proof that the unlisted operator is insured elsewhere.
  • Evidence that the unlisted operator resides elsewhere.

Utility bills, rental agreements, and deeds are official documents commonly accepted as proof of residence. Failure to demonstrate that the unlisted operator is insured elsewhere or resides elsewhere necessitates adding them to the policy. Furthermore, failure to provide the necessary information to allow the unlisted operator to be added to the policy may result in the cancellation or non-renewal of the auto policy in the middle of the term.