When your child gets to driving age, it can be very unnerving! You are concerned for their safety, others' safety and maybe even the cost of having another car to take care of. While many parents are thinking and planning about their young driver, one of the last things they usually consider is their car insurance policy. I see it all the time, and many people go into the process very uninformed. I'd like to share three things you should know before you add your child to your car insurance policy.
As a rule of thumb, I usually tell my clients to expect the cost of their insurance to double when they add their child to the policy. (I know! It's crazy.) I also tell them it will more than double if they are adding both their child and another car to the policy. It isn't always that expensive, and sometimes it costs even more, but it’s usually a pretty safe bet that your premium will double. You can try whatever you want, but when push comes to shove, it is going to be quite a bit more than what you are used to paying for car insurance. The good news is, as your young driver grows older, the cost will go down (but usually not until their early 20s).
You might be surprised by this, but I've had a decent number of clients try to add their child to their car insurance and either don't know their birth date or don't have their license number handy. It is essential to have that information in order to add them to the policy, so make sure you have a copy of their license when you are ready to add them.
When Should They Be Added?
This is one we run into a lot as well! Most people don't realize that their children need to be listed on their policy when they turn 15. Regardless of whether they have a learners permit or a license, residents in the house that are 15 and older need to be listed on the policy either as a driver or as an excluded driver. Adding an excluded driver to your policy can sometimes result in a slight increase, but it’s usually pretty inexpensive. When adding a young driver with a learners permit, it can be expensive or not change the rate at all. Some companies will rate a driver with a permit the same as a regular licensed driver. Some companies have a great option that adds permitted drivers as a “non-rated” driver, which means they can drive, but your policy is not being charged to add them. Once they turn 16 or get their regular license, they will charge you appropriately.
We know having a young driver can be costly and unnerving, but being educated about it should alleviate some of the stress. Call us, ask questions... That will give you a head start on what to expect and allow you to formulate a strategy to help pay for the added costs or make the proper adjustments in order to get your “baby driver” on the road safely and properly covered!
If you have questions about adding a young driver to your policy, or car insurance in Orlando, contact me at Harrell Agency. We are happy to be your go-to insurance agent in Central Florida!