teenager driving a car

Adding A Teenager To Your Auto Insurance Policy in NJ

Are you adding a teenager to your New Jersey auto insurance policy? This is probably an exciting time for your child, but it might be confusing for you. When you see the cost of adding a teen driver, it can make you question if you missed an important memo! 

The reality is that putting a teen driver on your insurance policy is expensive. Motor vehicle crashes are the leading cause of death for U.S. teens, according to the CDC. Due to this high risk, it costs a lot more to insure this group. Fortunately, rates go down as your teen gets older and keeps a clean record.

Below are some tips to follow when adding a teen to your auto insurance policy in NJ. 

Make Sure to Add Them

This may sound like a no-brainer, but it’s extremely important. Do not risk your house and lifestyle to save a few dollars in insurance.  Insurance carriers require you to disclose all drivers in your household.  Worse, some of the mass market carriers flooding your TV with commercials actually exclude coverage when a driver is not listed on your policy – even when they don’t live in your house!

Share Your Policy with Your Teen

It’s hard to believe that the rates you’re looking at now are actually cheapest, but it’s true. Adding your teen to your policy is the most affordable way to get them insured. There are companies that will sell insurance directly to teens, but it’s often more expensive and a parent has to co-sign. 

The good news is that car insurance rates decrease as your teen gets older. Rates are highest for 17-year-olds because they have a crash rate that’s twice as high as 18-and-19-year-olds. This is why it pays to work with an insurance agency in NJ that maintains excellent communication, as they will reach out and adjust your rates annually. 

Ask about Available Discounts 

Discounts are available for teen drivers, but most are generally dependent on good grades and good driving. Aside from raising your deductible to save on monthly premiums, ask your insurance company about the following discounts: 

  • Good student discount
  • Defensive driving discount
  • Student “away” discount
  • Good driver discount 
  • Low mileage discounts 

Shop Around for the Best Rates 

If you do not use an independent insurance agent with access to multiple insurance carriers, it is important to shop around yourself.  Just as insurance rates vary for you, they will vary for your young driver. It pays to get a couple insurance quotes in NJ with your teen’s information added. Insurance companies vary on their rates and their discounts. It’s possible that one company with higher rates may offer better discounts, bringing down your monthly premiums. 

Understand Your Rates Can Change 

Your teen’s driving record will affect your rates. If they get in an accident or are issued a ticket, your rates will increase. A simple moving violation raises rates anywhere from 5% to 20%. Instill safe driving for everyone in the family, such as not eating or using a cell phone while driving. You can also sign your teen up for extra driver education or a defensive driving course. 

Once your child has a license and is driving a vehicle, you must add them to your policy. Fortunately, there are ways to save – Soden Agency will show you how! We are an independent insurance agency that works for you, not the insurance companies. Contact us today to learn more about saving money with a teen driver.