Adding a Teen to Your Auto Insurance Affects Your Policy

If you’re the parent of a new teen driver, you probably have a few questions about your teen’s car insurance and how it will affect your existing car insurance policy. While your teen can take out his or her own car insurance policy independently, here’s how your policy will be affected if you add your teen to it.

Your Rate Will Be Affected

One of the most obvious ways that adding a teen will affect your policy is in the monthly/yearly rate that you pay. Usually, adding your teen is cheaper than having your teen get his or her own policy, especially if you add another vehicle because you may qualify for a multi-car discount.

However, keep in mind that your teen’s driving record will have an effect on your rate. If your teen has been in an accident or received a ticket, your premiums likely will increase.

You May Need to Change the Specifics of Your Policy

Of course, you and all the drivers in your family, including your teen, need to be covered under Pennsylvania’s basic car insurance laws — $15,000 in bodily injury per person, $30,000 in bodily injury per accident and $5,000 in property damage liability. However, you may want to consider purchasing more than the mandatory insurance types with a new teen driver. Teen drivers are much more prone to collisions than are their older counterparts. Other types of insurance to consider include uninsured/underinsured motorist coverage, collision coverage, comprehensive coverage, towing and labor coverage, and higher coverage amounts for bodily injury and property damage liability.

You May Pay More for a Teenage Son than a Teenage Daughter

On average, teenage boys are much more expensive to insure than girls because teenage boys have a higher risk of getting into an accident than girls. In fact, a July 2013 New York Times article stated that insuring a teenage boy results in a 96 percent increase in cost of a car insurance policy, compared to a 72 percent increase for teenage girls.

If Your Teen Gets in a Car Accident

If your teen gets in a car accident, it’s likely that your car insurance premiums will go way up. However, your monthly premium amount may be the least of your concerns. Read more about car accidents and what to do after a car accident happens in North East Philly on Cordisco & Saile LLC’s blog today.