Adding a teenager to your car insurance policy

It takes time for teens to learn how to drive safely. Ensuring they have the proper insurance coverage is critical. That’s why it’s important to know how to add a teen to an insurance policy and what factors will affect what you pay.

When to add a teen driver to auto insurance

At Nationwide, the ideal time to insure teen drivers is as soon as they get their driver’s license. It’s advisable to speak with your insurance agent before your teen receives their learner’s permit in order to begin the process of adding them to your policy.

Preparing a teen driver for the road

Driving may feel like a rite of passage for every teen, but it should always be treated as a privilege. Start talking to your kids about the potential dangers of driving early so they develop an appropriate respect for the road. Emphasize the importance of avoiding drugs and alcohol, as well as the dangers of distracted driving, in particular. It’s also a good idea to have your teen take a driver’s education course, even if not legally required.

Educating yourself is equally important. Read up on your state’s Graduated Driver Licensing (GDL) laws so you’re familiar with your teen’s restrictions from learner’s permit to full license. 

Don’t forget about the example you set. Show by example what it means to be a safe, considerate driver on the road.

Adding a teenage driver to car insurance

Not all states have the same laws, and internal guidelines for insurance companies may vary.  That’s why it’s important to check with your agent to find out what laws apply to your situation. The best time to talk to your insurance provider is before your new driver gets their permit. That’s also a good time to find out what it will cost to add a teen to your policy.

What is the average cost of car insurance for a new driver? 

Insurance rates can vary by numerous factors and who is the driver, among other factors. New drivers like teens tend to carry more risk on the road than more experienced drivers. Because of this, adding a teen to your policy may be expensive, but you might see rates drop lower with the same protection as they gain more experience. They can also help contribute to lower rates or savings with things like safe driving habits, good grades, and safe driving classes.

Getting a good deal on car insurance for teens

When you add someone to your insurance, particularly if that person is a teen driver, your insurance premiums may increase to cover the additional risk. But there are still plenty of ways to save while getting reliable protection.

There are things your teen can do to qualify for insurance discounts. Some involve proving to your insurance company that they can be responsible. For example, a good student discount can be earned simply by getting good grades in school.

Demonstrating safe habits on the road can also garner rewards or savings. The Nationwide Focused Driving Rewards® program rewards drivers for avoiding their phone and avoiding phone distractions, while programs like SmartRide® use telematics devices to offer discounted rates for safe driving habits.

Even if your teen doesn’t currently qualify for certain discounts, you may be able to earn discounts by bundling home and auto insurance.

Other ways to save money on car insurance for teens

There are plenty of ways to lower your premiums in addition to insurer discounts. Here are some ideas to consider:

• Pick the right car – The characteristics of vehicle you drive is a factor in determining your insurance premium. Vehicles such as sports cars with more power and fewer safety features tend to cost more to insure than something like a basic sedan equipped with modern safety features. Sedans, minivans and SUVs may have better rates for teens.
• Share a car - Instead of adding another car to the policy, share one that is already on the policy and make your teen the secondary driver. It may cost less than if the teen were the primary driver.
• Consider postponing getting a license - Consider postponing getting a license – Younger drivers can mean higher car insurance costs, so if a car is a "want" and not a "need" at the moment, you could save by delaying getting a license and giving your driver more time to build confidence and skills on the road.
• Raise your collision deductible - Increasing your comprehensive or collision deductible from $500 to $1,000 could save money on your monthly premium. Although you’ll want to keep in mind, in the event of an accident your out-of-pocket costs will be higher. Some carriers, including Nationwide, have an accident forgiveness coverage option. At Nationwide, Accident Forgiveness potentially helps you avoid a rate increase after your first at-fault accident. Others on your policy can also benefit from Accident Forgiveness. But it can only be used once per policy.  And it’s available in select states.  Check with your agent for more information.

Frequently asked questions about adding a teenager to car insurance

What are the consequences of not adding my teen driver to my policy?

Not adding a teen driver of your vehicles to your insurance policy can create the risk of an uncovered loss. Once your teen obtains their driver’s license, it’s critical to ask your agent to add them to your insurance policy or a policy of their own.

The most important thing is to ensure your teen has the proper insurance coverage regardless of whose policy they’re on. If adding them to your existing policy, you may want to consider reviewing your liability limits or adding an umbrella policy to mitigate the potential increased risk of covering a less experienced driver.

Not sure what to do? That’s exactly why your independent agent is there to help.

What is the difference between sharing a policy or adding a driver to car insurance?

Sharing a policy means you and another person have both insured your vehicles under the same policy. Adding a driver to your policy means you have listed them as someone who sometimes drives your car, thus protecting them under the policy.

Can you add someone to your car insurance policy who doesn’t live with you?

Yes, you can. If someone uses your car with any regularity, you can list them as a driver on your policy. It is usually a good idea to do so.

Unsure what to do in your situation? Have a conversation with your insurance agent to learn about your options for adding your teen to your insurance policy.