When Your Teenager Starts to Drive
My teenager just received a license to drive. Do I need to add him/her to my policy now? Will it increase my premium?
These are great questions that our customers ask frequently.
The short answers are “yes” and “yes.”
Most personal auto policies written in Texas extend liability coverage to anyone using a covered auto with your permission, including children when they begin to drive. However, some policies exclude family members who have not been reported to the insurance company and are not listed as drivers on the policy.
Failing to report your newly-licensed teenager is a dangerous game to play with your family assets. In fact, some companies may consider this to be “insurance fraud” and refuse to pay a claim involving a young driver who has not been reported – especially if the youngster had a license when the policy was first purchased.
Insurance companies expect you to report all drivers in the household and will charge a premium based on the appropriate driver classification. In the case of a youthful operator, that premium will depend on whether the driver is the principal operator of a family vehicle or just a part-time operator.
Be sure to discuss your family’s insurance needs with your insurance agent. After considering your specific circumstances, you and your agent can make a decision regarding auto insurance that is appropriate for your family and your insurance budget.