Updated: April 14, 2025
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Most states require your child, whether a provisional or newly licensed driver, to have car insurance coverage.
Since teens are too young to sign contracts or buy insurance, adding them to your policy is the best way to cover them.
Adding a new or high-risk driver to your car insurance may increase premiums, but discounts and a clean record can help reduce costs.
Driving without insurance isn't an option for new drivers. Add your teen to your car insurance policy when they receive their learner's permit. Even those with provisional licenses need insurance protection.
Adding them to your policy ensures they meet legal requirements and begin building their insurance history, which helps when they get their own policy later.
Adding your teen to the family car insurance plan is fairly straightforward. Here are the most crucial steps to securing coverage for them:
Before adding your child to your policy, review your current terms to understand what additional coverage you might need.
Your insurer will need specifics about your teen, including:
Call your insurer or agent to add your new driver. Provide the necessary information and ask about discounts for good grades or driver's education courses.
Your insurer will likely ask which car your teen will drive most often, as this affects your insurance cost. Research the cheapest cars to insure for teens before making this decision. If your teen has their own vehicle, have details ready, including the vehicle identification number.
Talk to your insurer about the best coverage for your teen. Consider their car, driving habits and your budget. Adjusting deductibles can help balance higher premiums.
Before locking anything in, request a quote to see how your premium might change and if you need to make tweaks.
If the price seems too high, ask about ways to lower it or consider adjusting your coverage levels.
After you finalize everything, your insurer should send you new insurance cards and an updated policy document showing your teen as a covered driver.
As your teen gains driving experience, your insurance costs will likely decrease. Check your policy regularly to ensure it meets your financial and coverage needs.
Adding your teen to your car insurance is legally required in most states. Because children under 18 can't legally sign insurance contracts, parents must ensure teens have coverage that meets state minimums. Only New Hampshire and Virginia don't require drivers to carry car insurance.
If your child has a learner's permit, your insurance might already cover them. However, not all companies extend full coverage to permitted drivers. Some insurers require even provisional drivers to be added as listed drivers.
When deciding whether to add your child to your car insurance policy, you must weigh the pros and cons against your family's situation and needs.
Cost savings: Young drivers usually face higher rates. Adding your teen typically costs less than getting them a separate policy.
Multi-car discounts: If your teen has their own car, you might qualify for a multi-car discount to offset the premium increase.
Insurance history: Keeping your teen continuously covered builds their insurance history, leading to better rates later.
Easier management: Having family members on one policy simplifies payments, renewals and claims.
Available discounts: Look for additional savings through good student discounts, driver's education completion or young driver safety programs.
Higher premiums: Teens have a higher accident risk, increasing insurance costs.
Policy rate impacts: If your teen has an accident or violation, it could raise rates for your entire policy.
Increased claim likelihood: Young, inexperienced drivers are more prone to accidents, potentially leading to significant claims that might affect your future premiums or policy status.
Coverage limitations: Your teen's driving habits might limit your coverage options, possibly forcing you to choose more expensive coverage.
Adding your teen to your car insurance costs an average of $2,718 per year. If they got their own policy, it would cost about $5,108 annually — 47% more expensive. Getting a separate policy is also challenging since you'll need to co-sign it, as minors can't legally sign contracts in any state.
Nationwide offers the most affordable rates for adding young drivers of most ages. GEICO provides the best rates for 18-year-olds.
The length of time a child can remain on their parent's car insurance policy depends on several factors, including the insurer's rules, state regulations and the child's situation. Here's what typically affects this:
Child's Situation | Explanation |
|---|---|
Age | Many insurance companies let young drivers stay on their parents' policy until about age 25, though this limit can vary by state and insurer. |
Residency | If the child lives with their parents, they can usually stay on their family policy. However, moving out and establishing a permanent residence may require them to get their own policy. |
Vehicle ownership | If the car is registered in the child's name, some insurance companies may require them to have their own policy. If the vehicle is registered in the parents' name, staying on their policy is easier. |
Marital status | Getting married might require a separate auto insurance policy, even if the child is still within the age limit and lives with their parents. |
Student status | Some insurers let full-time students stay on their parent’s policy even if they live on a college campus. However, students who drive regularly while living away from home may need their own policy. |
State regulations | Insurance is regulated at the state level, so rules vary. Some states have specific requirements for when a driver must get their own policy. |
Insurer's policies | Even if state regulations allow staying on a parent’s policy, some insurance companies may have stricter rules. |
Cost considerations | Staying on a parent's policy can be cheaper for young drivers, but it may raise the parents' premium. In some cases, it might be more cost-effective for the young driver to get their own policy, especially if they qualify for discounts. |
Coverage needs | If the child has certain coverage needs that differ from their parents', getting their own policy may make sense. |
Talk to your insurance agent or company about your child's situation. They can offer guidance based on your circumstances and the rules of your state and insurer.
Car insurance costs for your child will drop as they gain driving experience and keep a clean record. You can take several steps now to lower your premiums and find cheaper quotes for your family policy.
Many insurers offer good student discounts to students with a B average or higher. This rewards academic achievement and helps save on coverage. If your child’s college is far away and they leave their car at home, a student away discount may also be available.
A driver’s education or defensive driving course improves your teen’s driving skills and could earn an insurance discount.
Selecting a safer, older vehicle for your child can be a smart choice. Sports cars or new models might increase premiums, while vehicles with high safety ratings often come with discounts.
Raising your collision and comprehensive deductibles can lower your premiums, but it means higher out-of-pocket costs during claims.
Some insurers offer discounts for using telematics or tracking devices. These devices monitor driving habits, and safe driving can lead to lower premiums.
If your teen drives mainly on weekends or certain days, check for limited-use discounts.
Bundling home, car and other policies with one insurer can lower costs. Long-term customers or those with multiple cars on the same policy might qualify for loyalty or multi-car discounts.
Encourage safe driving. A clean driving record without accidents or violations helps keep premiums low.
Premiums vary significantly between insurers. When adding a young driver, take the opportunity to compare rates.
Different insurers offer unique discounts. Ask your agent about any other ways to lower your premium.
If your child's car is older, it might be time to reassess whether comprehensive or collision coverage is necessary.
Adding your child to your existing car insurance policy is often the smartest financial choice. But they might benefit from their own policy if they live independently, own a car or can afford their coverage.
Child's Situation | Coverage Solution |
|---|---|
Moved out of the house for college and is still driving | If your child has moved out to attend college and is driving there, they typically need their own car insurance policy. |
Studying abroad | Consider pausing your child's coverage if they study or travel abroad and won't drive their car. You can temporarily add them back if they plan to drive during short visits home. |
Has a car registered under their name | When a vehicle is registered to your child, they're usually required to insure it under their own policy. |
Can afford to pay for their own coverage | If your child is financially independent and can easily afford insurance, they might be ready for their own policy. |
Has a bad driving record | A child with a poor driving record can increase your premiums. In these cases, they might be better off getting their own insurance. |
Joins the military | When a child joins the military and gets stationed elsewhere without their vehicle, consider revising their status on your policy. |
Has stopped driving | If your child stops driving permanently, you can remove them from your policy. |
Regardless of age, every driver must have car insurance, including teens with provisional and full licenses. Since minors can't sign insurance contracts, parents must secure their coverage. You can cover teen drivers by adding them to your family policy or getting them a separate policy.
This article explains how to add your child to your car insurance, including its impact on rates. You can reduce costs by using discounts, maintaining a clean record and comparing offers.
MoneyGeek answered frequently asked questions about adding children to car insurance policies below:
A child can stay on their parent's policy if they live at the same address and don't have a car registered in their name. There's no age limit for car insurance coverage.
If your child has permission to drive your car, your insurance may cover your teen driver under the permissive use provision. Check with your provider to confirm your policy includes permissive use.
Most insurers require all household members to be listed as drivers on car insurance policies.
Drivers under 18 can get auto insurance, but it's difficult. Few companies insure minors, and those that do require a parent or guardian to co-sign. Premiums will be very high. The best option is adding teens to their parent's policy.
Teens can get a learner's permit between 14 and 18, but the minimum age varies by state.
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About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
