The cost of buying coverage for a young person is quite high, and some people are wondering whether a parent can exclude a teen driver from an auto insurance policy. This is one option available to parents, but everyone involved needs to understand the consequences of this decision.
Many auto insurance companies require policyholders to disclose the names of all licensed drivers in the household. Even if they are not named as primary drivers on the policy, the insurance company considers that they have access to the primary driver’s vehicle. Each person’s driving history and the length of time they have been licensed is factored into the cost of coverage for the vehicles covered under the auto insurance policy.
Auto Insurance Rates for Teen Drivers
Teens and young adults pay high rates for their auto insurance coverage. People in this age group are more likely to be involved in accidents than experienced drivers. Newly-licensed drivers don’t have the same level of experience behind the wheel than drivers who have been driving for at least a few years.
When auto insurance companies are asked to provide a quote for a brand new driver, the rate they provide is going to be higher than for a driver in his or her mid-twenties. Parents who want to keep costs down should not buy a policy with the young person as the primary driver, since this would be the most expensive way to get coverage for a teen driver.
Adding the young driver to an existing policy held by a parent, grandparent or other adult member of the household is a more economical choice. The teen is added as an occasional driver and while the premium rates will go up, the amount will be lower than if a new policy was purchased.
Exclude a Teen Driver from an Automobile Policy
A parent can choose to exclude a teen driver from an automobile policy to keep costs down, but everyone in the household needs to understand that the teen driver cannot drive the car at all. He or she will not have any coverage in place if an accident occurs.
Not only will the young person have to deal with the consequences of being charged with driving without insurance coverage in place, but the teen and his or her parents will be personally responsible for paying for damages as a result of the accident. The cost of driving without coverage can include personal injury claims, as well as the cost to repair the other driver’s vehicle and any public property damaged in the accident.
Get Best Rates on Auto Insurance for Teens
Parents who want to make sure that their teen driver has the coverage he or she needs without breaking the bank should shop around to find the lowest rates for a policy which will cover all the licensed drivers in their household. A number of insurance companies offer online quotes to make this process easier, and parents can even buy their new policy over the Internet.