So, you have willfully granted permission to your child to drive your cars?   A tough pill to swallow, we knowTeen Driving! The even bigger pill to swallow is to see your auto premium nearly double after adding them to the policy!

Adding your child to your auto policy, does not come at a low cost! Here are some tips that will help you cut the cost of adding your teen driver to the policy.

First things first, lets just put a kabosh on the thought running through your mind: yes, you do need to add your newly licensed child to the policy! Although “resident relatives” are insureds on your policy without being listed; they must be added when they become a principal or part-time operator of a vehicle insured on your policy.  If you do not add them and a claim should arise, companies will investigate and can charge back for premium that should have been collected.
Inevitably, your teen will have to be added to the policy, so here are some quick tips on how to “soften the blow”

1. Don’t buy a new car!

We know that you want your children to drive the safest cars, especially when they are new drivers, but the same safe cars can be found that are not brand new.  Newer cars are much more expensive to insure as parts are newer and much more limited.  Respectively, the more expensive the vehicle, the more expensive it will be to get the same parts to fix the vehicle if it were to be damaged.  Additionally, most of the premium comes from comprehensive coverage and collision coverage so the advantage to buying an older, less expensive vehicle is that it may not be worth carrying collision coverage which will keep the premium a lot lower.

2.Don’t report the “fender bender”

Consider paying small claims out of your pocket and saving your insurance for     the more expensive claims that arise.  Why, you ask? Insurance companies will hold accidents against a driver for up to five years.  This means becoming ineligible for safe driver discounts and exposing you to surcharges.  Your child will also become a high-risk as a young driver with accidents.

3.Jack-up your deductible

If you are going to be paying small claims that you can handle out of your pocket- you should be increasing your deductibles to $1,000 or even $2,000 if you think that is do-able.  Increasing your deductible by that amount can save you up to 35% on your overall premium. If you are a safe driver to begin with, it may be a good idea to start saving some money because of that!

4. Take advantage of discounts!

Have your teen driver enroll in the driver training program offered through most schools.  This can give up to 10% off the premium for that vehicle.  Defensive driving, which can be taken online ( will give another 10% off, good for 3 years, which can also remove points for tickets.  Many companies also offer “away at school” discounts for students that leave their vehicle at home while away at college.  Young driver discounts and safe driver discounts are also available for households with no claims. Most companies also offer a good student discount.

Take advantage of these tips as a way to keep the premium low when adding your teen driver to the policy.  You may also consider getting your child on their own policy.  The advantage here is keeping the liability away from you, while also preserving your driving record.  If your child gets ticketed or into an accident it is your policy that will suffer, and ultimately your wallet that will absorb the blow!

 We represent companies that offer all these discounts, for more information give us a call! 518-389-2455