What Happens if I Don’t Add My Teenager to My Car Insurance

Michelle Wilson - September 10, 2023

Adding a teenager to your auto insurance policy sounds relatively daunting for parents, especially when rates jump up. As teenagers approach driving age, many enlist in driver’s education, getting a few lessons behind the wheel, and getting their learner’s permit. Eventually, they get their driver’s license. If your teen is going to drive a vehicle regularly, they’ll need insurance.

Any teenager living under your roof and operating a vehicle must always have auto insurance. If not, there could be severe consequences. Insurance companies could deny coverage, may not cover losses, or try to recoup costs over time. Additionally, uninsured teens could have their license suspended or revoked if caught.

What Happens if You Don’t Add Your Teenager to Your Car Insurance?

Any teenager driving a vehicle should always follow the rules and regulations of the road. Holding active auto insurance is the law, which has severe consequences if police catch them. Should an uninsured teen get into an accident and not be included in your policy, the company may deny coverage or treat the circumstance as an insurance fraud attempt (if they believe the teen was purposely left off the policy).

Car insurance for a teenager is costly enough without legal ramifications. A teenager caught driving without proper coverage could end up with a suspended or revoked license, landing as a high-risk driver. High-risk drivers statistically pay even higher premiums or have an insurance company refuse to provide coverage altogether.

When Should Someone Add a Teenager to a Car Insurance Policy?

No standard rule about adding a teenager to the auto policy exists, as every state and insurance company differs. Whether parents should add the children to the policy when they first get the learner’s permit or when they get the license will depend on the specific insurance company and state laws.

One insurance company may require a policyholder to add the teenager to the policy when they get their permit. In contrast, others might have you wait until the teenager is fully licensed. Contact your insurance specialist to determine when to add the child to your policy. Talking directly to the specialist will keep your family protected without paying increased premiums.

How Much Does It Cost to Add Your Teenager to Your Car Insurance Policy?

Young drivers are among the riskiest age groups for driving, making them expensive to insure. Recent estimates show that individuals can expect premiums to increase by 50 to 100 percent. These premiums will depend on the current company and your rates. The premium rate accounts for your new driver’s inexperience behind the wheel.

An insurance company will take into account the driver’s probability of being involved in a crash, speeding, or other factors when setting rates. A teenage driver between the ages of 16 and 17 is three times more likely to be involved in a fatal car accident than a driver over 20. Police data indicates the young age group is four times as likely to be involved in incidents of all severities.

Saving Money on Car Insurance with Teenagers

Although trying to secure car insurance for your teen is costly, you can do a few things to lower the insurance premiums overall.

Add the Teen to Your Policy

As a new driver, it’s never cheaper to register your teen’s first vehicle in their name. Should your child own the car, they’ll need to get a separate policy in their name. If you list dependants on your policy, they’ll probably enjoy the same benefits at a fraction of the cost. One significant benefit is a lower premium on their insurance compared to individual policies.

Enroll in Driving School

Driving schools teach your teenager how to be an assertive and defensive driver, offering in-class lessons and in-car sessions. Look for a reputable company that provides a certificate upon completion. When finished, contact your insurance company to let them know. A few different companies will give new drivers a premium discount for completing a defensive driving course.

Choose the Right Car

A safe vehicle will make all the difference in your insurance premium. Safety features like anti-theft systems, winter tires, airbags, and anti-lock brake systems help keep your teenage driver safe, lowering the annual premiums overall.

As for the Student Away Discount, if They Don’t Live at Home

When your teenager attends a boarding school or has enrolled in college, they’re going to stay on campus. For a teen living away from the principal address, contact your insurance company and let them know the driver won’t have access to the vehicles as often. A few companies will discount the policy premiums for students away at school.

Look for Student Discounts

Several insurance companies will offer teenagers a better premium rate for responsible individuals. If your child holds a decent average overall (like a B or higher), they may be eligible for a student discount. A few insurance companies may request a copy of the school report card to be sent over as proof.

Ask for Alumni Discounts

Several insurance companies will offer significant discounts for policyholders affiliated with various clubs, schools, or businesses. When talking to your agent, always ask them about any alumni or affiliate discounts available. If your teenager recently graduated high school or university, check if they offer lower rates. Likewise, please speak with your agent about any club or business affiliation they might offer.

Purchase Roadside Assistance

If the cost is lower than the new insurance premium, look for assistance services. For several insurance companies, investing in third-party roadside assistance can reduce household premiums by ten percent or more.

Conclusion

The easiest way to add your teenager to a car insurance policy is to contact your insurance agent or company directly. Have all information available, including your teen’s birthday and the date they received their license. Your agent can navigate when it’s time to add them to your policy and can help you look for any applicable discounts in the process.

Failing to add your teenager to your car insurance is a potentially risky move. If your teen is involved in an accident, you run the risk of your insurance company refusing the claim or trying to recoup the insurance claim over a specific period. Your teen may also face legal ramifications if caught driving without proper insurance. They may face having their driver’s license suspended or revoked, ultimately putting them in the high-risk category. High-risk drivers will often require specialty insurance brokers, which costs far more than average insurance premiums for other teenagers in this category. By keeping your teenager insured, you’re safeguarding them, your vehicle, and others on the road.