Car Insurance and Teen Drivers

Your teen driver is not automatically covered. Once your teenager has reached the eligible age to drive and has obtained his permit, you can add him to your auto insurance policy. Your policy may not change significantly until your teen receives his valid driver’s license, but the insurance company needs to know that your teen is now driving. Any other teen relatives would not be automatically covered on your policy. Your policy premium will most likely increase.

Keep in mind that whatever rights your teen has in driving your car, she will have the same or similar rights in driving someone else’s car, as long as she has been given the explicit permission to drive that car by the owner of that car. Remember though that if your teen drives someone else's car, insurance complexities kick in so that there are primary and secondary insurance coverages in the mix.

If you are divorced, your child may be on your policy or your spouse’s policy. Compare rates and coverage options to determine which policy is a better fit for your teen driver. Take into consideration the overall financial provision of the divorce settlement, child support, and other financial aspects of your economic situation.

Once your teen leaves the home and goes away to school, many experts recommend keeping her on your auto insurance policy so that she can continue to drive legally. Do not remove your child from your policy until she completes her schooling, gets a decent job, and can afford her own insurance policy. Typically this does not occur until after the age of 21.