Sharing Your Vehicle?

person driving a car

Making the decision to allow your teen to drive your vehicle is a big decision. If your child lives with you and will drive your vehicle, you need to inform your insurance company.

Even if your teen does not plan to drive your car every day, it is important that they have an insurance policy in place. This will help safeguard other drivers and your child from financial loss after an accident. But, what happens when your teen gets insurance?

Putting Them on Your Plan

It is very common for all drivers within the same home to share a car insurance policy. The benefit here is cost savings. When multiple drivers bundle their car insurance into one plan, it often costs less. Most importantly, this makes it possible for your teen driver to get a more affordable plan.

Without a parent or other experienced driver on the auto insurance policy, your teen's policy may cost significantly more.
With a bundled plan, the teen will still pay more than most drivers. This is due to the teen's relatively high risks compared to seasoned drivers. Overall, however, they may pay significantly less.
Bundling does not necessarily increase the rates of other drivers on your plan. However, the addition of the teen may drive up the overall cost of the plan to a degree.

If your teen lives with you, consider the benefit of placing them on your policy. You may see the policy's costs rise somewhat, but it is unlikely to be as much as most drivers think.

Should Your Teen Have His or Her Own Policy?

A common question has to do with ownership. If the teen owns the car, should he or she have a separate policy? The answer is generally no. First, your teen's vehicle can often be a part of your bundled policy within your home. Second, many parents find it is much less expensive for the teen to maintain this policy within the household. However, if your teen does not live with you, that individual should have a separate policy in place.

To see the actual figures, contact your provider. You can get a car insurance quote for various options for your teen driver. You may wish to consider policies that help to reduce your teen's risk of financial loss. Most importantly, be honest and upfront with your insurer. You need to be sure that individual has the coverage necessary.

We've got you covered. Contact us for more information about a fast, free car insurance quote.

Sharing Your Vehicle?

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