When your teenager gets their license, they will need insurance to drive a car. If your teen driver is driving your car, you must add them to the family’s policy. Adding a teen driver to your car insurance means that your rates will increase.
If your teen driver has their own car, you can have them get their own policy instead. Based on our research, 85 percent of parents add their teen drivers to their insurance policies.
However, adding a teenager to your policy can be the cheapest way to go. When you add your teen to your policy, rates drop as much as 45 percent compared to a teen who has their own policy. For example, putting a teen on a family policy might cost $2,947 annually, while a teen with their own policy might cost $5,352.