A hallmark of a teenager’s life (not to mention their parents’) is obtaining that magical ticket to freedom – the driver’s license. Unless they are just planning to frame it and put it on their bedroom wall, get ready for some additional mileage on your vehicle. With another driver in the house, you will not only need to fill the gas tank more often, you will need to make an adjustment on your auto insurance policy.
Nearly all insurance companies require that all members of your household that are licensed drivers be added to your auto policy. If you have several vehicles, you can add drivers to individual vehicles, ideally those that are the least expensive to insure. You can also exclude drivers, but that means they are specifically not covered for anything that happens while driving your vehicle. This could also be cause for cancellation should something occur.
As far as your teen drivers go, you’ll want to let your insurance professional know when he or she gets their learner’s permit. They won’t necessarily need to be listed on your policy until they are fully licensed. If you do not have primary custody of your teen, you may not need to add them as a household driver. You should check with your insurance professional to be sure.
Another option is for your teen driver to have their own vehicle. Just bear in mind that premiums for teen drivers are high as it is. Insuring a separate vehicle may cost more than adding the vehicle (and driver) to your policy. Also check to see what sort of discounts (good student, driver’s education, etc.) there may be available.
There are systems available for monitoring driving behaviors — speeding, seat belt usage, hard braking and cornering – that can send you a notification if your teen does something he or she is not supposed to do. Technology is available that blocks cell phone calls and text messages when a vehicle is in motion. Installation of any of these systems could mean a premium reduction.
As with any other insurance questions, the best move is to talk with your insurance professional about what you need to do about this particular change in status. They will direct you towards the coverage that make both the best sense, economically and for your family’s protection.