Do you have to add a teenage driver to your car insurance policy?

Why you can trust Insure.com

Quality Verified

At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry.

When your teenager starts driving, there’s more to consider than just their safety — you’ll also face the added cost of insuring a young driver.

Teen licensing and insurance laws require that, as your child starts driving, you need to add them to your car insurance policy. In most states, this isn’t optional — insurance companies expect all household drivers to be listed, even if your teen only drives occasionally or uses a family car. Failing to add them could result in denied claims or even policy cancellation. While adding a young driver usually raises your premium, it also ensures your teen has proper coverage if they’re involved in an accident, protecting both them and your family financially.

Once your teen turns 18 (or reaches the age of majority in your state), they can get their own insurance policy without your help. However, teens who purchase their own insurance typically face very high rates due to their inexperience on the road and higher risk of accidents.

“It’s usually cheaper to add a teenager to their parent’s car insurance policy,” says Carole Walker, executive director of the Rocky Mountain Insurance Association, a nonprofit representing property and casualty insurers.

Key Takeaways

Adding your teen to your policy may increase car insurance rates by 70% to 150%.
Adding a teenager to a car insurance policy is less expensive than buying them an individual policy.
If you don’t add your teenager to your insurance policy, your insurer may deny coverage for accidents they are in, leading to higher premiums or policy cancellation.

Our advice to parents of novice drivers

There are several things you should keep in mind when insuring a teen. They include:

Make sure your teen is properly insured. Except in New Hampshire, every driver on the road must carry car insurance. That means before your teen ever gets behind the wheel — even with a learner’s permit — you should notify your insurer. Adding them early ensures your whole family is protected if something happens
Plan for higher costs. There’s no sugarcoating it: teen drivers are expensive to insure. Premiums rise sharply when you add a young driver, so it’s smart to plan ahead and build the extra cost into your budget.
Why boys often cost more than girls. Statistically, teen boys are involved in more crashes — and more serious ones — than girls. As a result, insurers typically charge more to cover them. That said, some states, including California, ban gender as a factor in setting car insurance rates.
Look for ways to save. The good news is plenty of discounts can help offset the higher costs. Many insurers reward teens with good grades, safe driving habits, or completion of driver’s education courses. Ask your insurer which discounts your family qualifies for so you don’t leave money on the table.

What happens if I don’t add my teenager to my car insurance?

If you don’t add your teen to your car insurance policy and they’re in an accident, your car insurance company could deny coverage, stating you committed fraud, specifically material misrepresentation, by not informing it of the licensed driver.

“Deliberate concealment could impact coverage,” Walker says.

Alternatively, your insurer may cover the accident but then require you to pay all premiums that should have been paid since your child was licensed. Instead of having their premium spread out during all the months they were licensed, it will be due all at once.

How to add a teenager to your car insurance policy

Take the following steps to add your teen driver to your policy:

Talk to your current insurance company about when you must add your teen, whether at the permit stage or when the license is obtained.
Get a quote for adding your teen to your existing policy with higher liability limits — we recommend 100/300/100. This means up to $100,000 for one person’s injuries, $300,000 for all injuries in an accident, and $100,000 for property damage you cause.
Shop for quotes from other car insurance companies to find the best rates.
When the time comes, add your child to your current policy — or shop around for a new insurer with better rates. Be sure to ask about available discounts either way.
Keep an eye on your teen’s driving and encourage safe habits — it protects them on the road and helps keep insurance costs down.
Shop at least once a year to ensure your rates are as low as possible by comparing quotes from the top car insurance companies. Also, check if new discounts are available, such as if your child has raised their grades and would now qualify for a good student discount.

When to add a teen driver to your car insurance policy

Most insurers let you list a teen with a learner’s permit for free until they get a full license. At that stage, you’ll need to add them and start paying higher premiums. Some companies, though, require you to add a teen as soon as they get a permit. That’s why it’s best to check with your insurer before your child gets behind the wheel.

Even if your teen delays getting a license, your insurer will usually know there’s a new driver in the household. They may list your child as “unlicensed” on the policy, which doesn’t affect your rate. But once your teen starts driving, your premium will go up.

The good news: discounts can help offset the cost. Ask about good student, safe driver, or low-mileage programs to keep premiums in check.

Bottom line

In every state except New Hampshire, anyone driving must be insured. Since insurance follows the car, not the driver, coverage is generally in place when your vehicle is insured. Still, if someone drives your car regularly, they need to be listed on the policy. Always confirm with your insurer so there are no gaps.

How much does it cost to add a teen driver to your car insurance policy?

Adding a teen driver to your car insurance policy can raise your premium by 70% to 150%, largely because insurers see inexperienced drivers as high-risk. However, the cost of coverage depends on your state and how heavily your insurer factors age and driving experience into its rates.

The table below shows how much it costs to add a teenage driver to you car insurance policy.

Insurance company	Cost under parent’s policy	Cost to add a teen daughter	Cost to add a teen son
Allstate	$2,310	$3,878	$4,195
GEICO	$1,264	$2,473	$2,622
Farmers	$2,939	$4,822	$4,921
Nationwide	$1,538	$2,372	$2,510
Progressive	$1,913	$3,722	$3,992
State Farm	$1,671	$2,893	$3,200
Travelers	$1,806	$3,427	$3,810
USAA*	$1,101	$2,346	$2,491

*USAA is only available to military community members and their families.

How much does your car insurance go up after adding your teenager?

Parents might not incur higher insurance costs when their teen is practicing driving without a driver’s license.

“Most companies won’t charge an additional premium until the teen is a licensed driver,” Walker says.

However, once the teen is licensed, adding him or her to your car insurance policy can cause your rate to jump by 70% to 150%.

While that might sound daunting, the good news is that there are several ways to lower the rate. For example, students who excel in school might qualify for a “good student” discount.

The best way to cut costs is to shop around and get quotes from multiple insurance companies before settling on a policy that provides the coverage you need at the best possible price.

State	Parent’s policy	With a teen	Percent increase
Alaska	$1,236	$2,532	105%
Alabama	$1,464	$2,612	78%
Arkansas	$1,436	$2,749	91%
Arizona	$1,532	$3,273	114%
California	$2,041	$4,307	111%
Colorado	$2,048	$3,413	67%
Connecticut	$1,383	$2,547	84%
District of Columbia	$1,877	$3,423	82%
Delaware	$1,636	$2,951	80%
Florida	$2,993	$5,496	84%
Georgia	$1,516	$3,129	106%
Hawaii	$1,282	$1,338	4%
Iowa	$1,156	$2,089	81%
Idaho	$957	$1,827	91%
Illinois	$1,309	$2,821	115%
Indiana	$1,214	$2,276	87%
Kansas	$1,422	$2,554	80%
Kentucky	$1,743	$3,211	84%
Louisiana	$2,991	$6,364	113%
Massachusetts	$1,721	$3,366	96%
Maryland	$1,923	$3,554	85%
Maine	$996	$2,360	137%
Michigan	$4,054	$7,180	77%
Minnesota	$1,610	$2,832	76%
Missouri	$2,134	$4,294	101%
Mississippi	$1,342	$2,500	86%
Montana	$1,782	$3,206	80%
North Carolina	$1,369	$2,575	88%
North Dakota	$1,154	$1,991	73%
Nebraska	$1,798	$2,955	64%
New Hampshire	$923	$1,906	107%
New Jersey	$2,208	$4,382	98%
New Mexico	$1,695	$3,164	87%
Nevada	$2,287	$4,259	86%
New York	$1,832	$3,681	101%
Ohio	$1,065	$2,157	103%
Oklahoma	$1,855	$3,620	95%
Oregon	$1,430	$2,629	84%
Pennsylvania	$1,245	$2,398	93%
Rhode Island	$1,681	$3,552	111%
South Carolina	$1,671	$3,503	110%
South Dakota	$1,523	$2,512	65%
Tennessee	$1,209	$2,423	100%
Texas	$1,852	$3,967	114%
Utah	$1,819	$3,673	102%
Virginia	$1,133	$2,633	132%
Vermont	$996	$1,944	95%
Washington	$1,309	$2,196	68%
Wisconsin	$1,511	$3,198	112%
West Virginia	$1,386	$3,081	122%
Wyoming	$1,677	$2,847	70%

How much does it cost to add a new driver to car insurance by coverage type?

Adding a teen driver to your car insurance policy usually brings a steep rate increase, with the exact cost depending on your child’s age and the coverage limits you select.

For example, at age 16, the average premium for state minimum liability is $2,111 per year, $2,527 for liability-only coverage, and $7,149 for a full coverage policy.

The table below shows the cost to add a new driver to your insurance policy by coverage level.

Age	Non-owner, state-minimum liability	Owner, state-minimum liability	Liability-only coverage	Full-coverage policy
16	$832	$2,111	$2,527	$7,149
17	$743	$1,729	$2,083	$5,954
18	$666	$1,480	$1,799	$5,249
19	$552	$1,135	$1,387	$4,126
20	$503	$1,005	$1,233	$3,739
21	$435	$817	$1,009	$3,094
22	$413	$752	$934	$2,858
23	$392	$695	$867	$2,670
24	$381	$654	$817	$2,524
25	$357	$585	$740	$2,259
30	$334	$525	$669	$2,012
35	$329	$512	$656	$1,947
40	$325	$503	$649	$1,897
45	$322	$498	$644	$1,869
50	$315	$481	$625	$1,790
55	$310	$471	$612	$1,737
60	$311	$471	$611	$1,717
65	$321	$488	$632	$1,742
70	$341	$526	$676	$1,841
75	$366	$589	$748	$2,010

How to save money on teen car insurance rates

Skyrocketing rates caused by adding a teenager to car insurance can be reduced a bit by getting discounts. Here are the common discounts teens or your household can receive:

Good student discount: Insurers advertise discounts of anywhere from 5% to 25% if your young driver does well in high school or college, typically defined as obtaining a GPA of 3.0 or above or ranking in the top 20% of their class.
Good-driver discount: Keeping a clean record will allow your child to eventually receive a good-driver discount, generally 10% to 25%. However, insurers may require the person to have a clean license for three to five years.
Driver training discount: Some car insurance providers offer a discount for driving training courses, usually between 5% and 15%. Other insurers do not since it’s part of the licensing process. If driver education training courses don’t get your teen driver a discount, see if defensive driving or other classes will.
Low-mileage discount: Discounts start at driving under 10,000 miles a year, but they might be even higher if you drive less than 7,000 or 5,000 miles annually.
Monitor your teen: Teens often drive more safely when enrolled in a pay-as-you-drive (PAYD) program. Insurers like Allstate and Progressive track driving habits — such as speed, mileage, and braking — through a device or app, and safe driving can earn discounts from 5% to 45%.
Family plan discount: Some insurers give discounts to young drivers who obtain their own insurance plan with their parents’ insurer.
Student-away discount: If your child goes off to college more than 100 miles away from your home and does not take a car, many insurance companies will offer a discount. The discount varies greatly, from 5% to up to 35%, depending on your insurer.
Multi-vehicle discount: When adding another car to your policy, it should be eligible for a multi-vehicle discount.

What type of insurance coverage should your teen get?

There are many types of coverage you should carry when you add a teen driver to your policy. They include:

Liability coverage. It covers damages your young driver may cause to others, both injuries and property damage. It is important to carry adequate levels of coverage. Injury claims can easily cost hundreds of thousands of dollars in medical treatments.
Comprehensive and collision coverage. These types of insurance cover damages to your vehicle. Collision coverage reimburses you for damages to your car that result from a collision with another car or object. Comprehensive coverage covers most other types of damage that occur to your car that are not the result of a collision.
Uninsured and underinsured motorist coverage. Uninsured motorist insurance helps cover damages when you are in an accident with a driver who does not have insurance. Underinsured motorist insurance can help pay your bills when the other driver has inadequate coverage.
Medical payments coverage and personal injury protection. These types of insurance cover you for medical care related to injuries to you, or to a passenger in your car.
Gap insurance. This type of coverage protects you when you have a loan of the car. It pays the difference between what your vehicle is currently worth and what you owe on it.

Why teen crash statistics matter

Car crashes remain one of the leading causes of death for teenagers, making this a difficult but important topic for parents. Understanding the risks can help families make informed decisions about driving rules, insurance coverage, and safety habits.

The chart below shows teen motor vehicle crash deaths as a share of all motor vehicle fatalities in 2023 — the most recent year available from the Insurance Institute for Highway Safety — and illustrates the percentage of overall crash deaths that involved teenagers.

Type of crash fatality	Teen fatalities	All-age fatalities	Teens’ share of total fatalities
Passenger vehicle occupant	2,255	24,238	9
Pedestrian	241	7,314	3
Motorcyclist	344	6,335	5
Bicyclist	71	1,155	6
All-terrain vehicle riders	41	235	17

Keep in mind: Car insurance rates will eventually go down

Car insurance is highest during the early years of being licensed. Parents must stress how important it is to be free from accidents and violations. As teens mature and demonstrate they’re good drivers, they can obtain good driver discounts, which can significantly help auto insurance rates. Also, auto premiums for drivers normally go down slightly each year from age 16 until age 25.

Frequently asked questions

How long do you have to add a new driver to your insurance policy?

You must add a new driver to your policy as soon as they are licensed. Some companies require that you add a driver when they get their permit. While there may be a grace period of up to 60 days to add a new driver, your insurance company can and will backdate the rate increase to when your teen was licensed, so waiting won’t save you any money.

Should a teen get their own policy or go on a parent’s policy?

Putting a teen on their own policy is almost always more expensive than adding them to an existing family policy. In fact, if your child is still a minor, they may not even qualify for their own coverage. Even at 18, a standalone policy typically costs more. That’s because teens miss out on discounts you may already have — like multi-vehicle, multi-policy, or loyalty savings with your current insurer.

Can you exclude a teen driver from a parent’s policy?

In some states and with some insurers, you can exclude a driver from your policy for a small fee, meaning they won’t be covered if they drive your car. This option is generally not for teens who drive occasionally, but it can be useful if your teen has multiple tickets or accidents and your insurer threatens to drop you. To exclude a driver, you’ll need to complete a form with your insurer. If exclusion isn’t possible or desirable, consider shopping around — another company may offer more flexible rules or better rates for high-risk teens.

What our expert says

Q: When do you have to include a new driver on your insurance?

Carole WalkerExecutive director of the Rocky Mountain Insurance Information Association.

Technically, most insurance companies do not require teens to be added to a policy until they have a license. However, failing to promptly notify the insurance company can be a mistake. “It’s a risky gamble, especially with a new, inexperienced driver behind the wheel,” Walker says. “It’s better to know what your car insurance covers and when you need to add your teen to the policy before you allow them to hit the streets for the first time.”

Chris Kissell

Contributing Researcher

Specializing in insurance and personal finance, Chris Kissell is a writer and editor whose work has been featured at Forbes, U.S. News & World Report, MSN Money, Fox Business, Yahoo Finance, Bankrate and Money Talks News. He is based in Denver.

On this page

Our advice to parents of novice drivers
What happens if I don’t add my teenager to my car insurance?
How to add a teenager to your car insurance policy
When to add a teen driver to your car insurance policy
How much does it cost to add a teen driver to your car insurance policy?
How much does your car insurance go up after adding your teenager?
How much does it cost to add a new driver to car insurance by coverage type?
How to save money on teen car insurance rates
What type of insurance coverage should your teen get?
Why teen crash statistics matter
Keep in mind: Car insurance rates will eventually go down
Frequently asked questions
What our expert says