It is usually cheaper to add a teenager to the parents' policy, rather than be insured separately on their own policy. It is often easier and less expensive for a newly licensed driver to be added to their parent's auto insurance policy than to start up their own policy, especially if it is a teen and they do not own their own vehicle.

You could save a lot when you are adding a young driver to your policy if you're willing to shop around. Most companies have a good rating tier for mature adults, while others have a good rating tier for mature adults with children. This forces you to shop around for the best rate when your son or daughter receives their driver's license. Read our page on car insurance for young drivers to help you through your buying decisions.

Every company varies on their rules about charging insurance premiums for families with a driver with a learner's permit, therefore, you have to notified the company about the teen driver with a learner's permit. Some policies automatically extend coverage to a newly licensed driver because he or she is defined as an insured by being related to you by blood, marriage or adoption, and by being a resident of your household, but you have to notify the company to verify the coverage is automatically extended. As insurance agents, we have seen situations where parents didn't notify their insurance company, the child gets into an accident, and the company guidelines wouldn't extend coverage. Please notify your insurance company and shop around for better rates if your company's rate is too high. makes this process simple, since we know that shopping for car insurance takes time. Use our online quote form to get a 10 minute rate and compare companies, compare prices with and without the teenage driver on the quote.

The cost of adding a teenage driver varies, just like all the other factors that go into rating a policy. Boys generally cost 10 percent to 30 percent more than girls to insure at a young age. The National Safety Council says that drivers 16 and 17 are three times more likely to be in a traffic accident than adults ages 25 to 64. This means that you have to make sure you have more than enough insurance on your young drivers. It does make it difficult to pay higher premiums at a time when your child needs the most coverage. We can't stress the need to purchase higher liability limits and higher PIP or Medical Payments coverage (especially if you don't have your family insured on a health insurance policy). If your family has a health insurance policy, you may want to only increase your Liability limits and rely on your health insurance policy for medical coverage if it provides coverage in an auto accident.

Your insurance premium will increase when you put your teenager on your auto policy, therefore you need to seek ways to save money. Shopping is important, but you can also looks for discounts. Parents receive discounts for being married, maintaining good driving records, owning multiple cars and carrying homeowners insurance with the same company. For your child, your rate can go down if your teen gets good grades or establishes a good driving record (which takes time). Most companies offer discounts to students with good grades, generally a B average or higher. Be aware that you shouldn't necessarily seek companies that offer this discount, because you will find companies that don't offer the discount but they are much cheaper than those that do. If you require your son or daughter pay for all or part of the incremental cost of adding them to the policy, they may feel a higher incentive to drive responsibly and get good grades.

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Michelle Megna
Editorial Director

Michelle is a writer, editor and expert on car insurance and personal finance. Prior to joining, she reported and edited articles on technology, lifestyle, education and government for magazines, websites and major newspapers, including the New York Daily News.