Car Insurance: Adding Your Teen

Car Insurance: Adding Your Teen

Having a new driver in the house is exciting, but also nerve-wracking. Your teen gets their permit, a car, and then their license. So what do you do about insurance? Here’s what you need to know:

When do you get it?

This is important; you do not need to get your teen their own insurance while they still have their permit. It’s only required when they receive their license. But remember to notify your insurance company that you have a new permit driver so they know if anything happens.

Be prepared for higher rates.

New drivers are much more of a liability than experienced drivers. And unfortunately according to insurance companies, male teen driver rates can be a tad higher than females.


Yes, it’s more expensive to insure a teen/new driver, but look for ways to knock the price down. If you’re adding another car, you can qualify for a multiple car discount, and sometimes auto insurance companies offer discounts for your student having good grades (another way to make sure they study).

Pro Tip:

TruStage offers insurance discounts to members of the Credit Union, see if you can get a lower price!

Determine which type of insurance.

See what type of insurance your new driver needs. Do you want to spend more and go all out with full-coverage? Or do you want to go cheaper with collision/comprehensive coverage. Also, the type of vehicle you buy plays a place in which type of insurance you need. This is something to think about whenever purchasing insurance for your teen.

Don’t forget about Driver’s Ed!

While your teen might not appreciate it as much, “graduating” from Drivers Education class looks really good to the insurance company and they may even offer a discount for it! Also, they will learn extra beneficial things about. You really can’t go wrong!

Enforce Driving Regulations.

This is something you should do just because you have a curious teen on your hands, but enforcing driving regulations can help with safety while driving. Talk to your teen about when and where they can drive. For example, driving late on a Friday night can result in more accidents because of potential drunk drivers. Make sure you’re setting boundaries and rules to keep your loved ones safe while on the road.


Do you know of any more ways to set up a teen driver with insurance? We’d love to hear – let us know in the comments!

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