Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Sep 26, 2020

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Key takeaways...

  • Many younger drivers choose to stay on their parents’ auto insurance policies as long as possible because it is a cheaper form of auto insurance coverage
  • There is not a set age limit for being able to stay on your parents’ auto insurance policy, but many auto insurance companies will require that the younger driver is a dependent of the named policyholder in order to be a covered driver on that policy
  • Every auto insurance company has different requirements for allowing a younger driver to stay on his or her auto insurance companies, but this is typically not allowed if the child moves into a separate residence
  • If a younger driver has a poor driving record and accident history, this could be a reason that he or she is no longer able to be insured on the parents’ auto insurance policy
  • Younger drivers may be able to establish a stronger driving record and better credit score while they remain on the parents’ policy and can later get a policy of their own

Many teen drivers choose to stay on their parents’ auto insurance policy instead of getting insurance on their own because it is much cheaper to make that arrangement.

Drivers are able to build up their credit score and driving history while staying on their parents’ auto insurance policy so that they are in a better position to get auto insurance coverage on their own down the line.

Having a solid driving record and a decent credit score are two of the most important factors in figuring out the rate that you will have to pay for auto insurance.

Comparison shop to be sure you’re getting the best rate. Just enter your zip code in our free tool above.

Auto Insurance Considerations for a Teen Driver

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New drivers or teen drivers are the most likely candidates to be added to an existing car insurance policy of their parents. The major reason for this is that the cost of car insurance is way too high for a new or teen driver to get coverage on his or her own.

Even though car insurance coverage is a requirement for all drivers on public roads in the U.S., there is no requirement that every driver has to have his or her own separate auto insurance policy.

Auto insurance companies understand this and are usually happy to accommodate a policyholder’s request to add a new or teen driver to an existing auto insurance policy.

While the total price or premium for an auto insurance policy with an additional teen driver will most certainly go up, the increase is typically much less than what the teen driver would have to pay on his or her own.

A good thing to keep in mind when having a teen driver added to an auto insurance policy is to make sure that the least expensive and lowest-risk car to insure in that household is assigned to the teen driver.

Your auto insurance company may not do this automatically, so it is a good idea to make sure that it is set up this way.

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Reasons Why a Teen Driver May Not be Added to His Parents’ Auto Insurance Policy

Not all auto insurance companies will allow teen drivers to be added to an auto insurance policy.

If the auto insurance company determines that the teen driver is financially independent and not actually living at the address of his or her parents, then it is possible that coverage will be denied.

In this scenario, the teen driver would have to seek out auto insurance coverage on his or her own.

In addition, another reason why some auto insurance companies may deny coverage for a teen driver is if that driver has a poor driving record. It should come as no surprise that teen drivers are more likely to get into an auto accident than more experienced ones.

This is why it is generally more expensive to insure a teen driver. If you are a teen driver and have already been in a car crash or have accumulated several speeding tickets, you may be considered too much of a risk to be added to your parents’ insurance coverage.

If you find yourself without coverage options through your parents’ current auto insurance policy, then you should contact your state department of insurance to find out what options exist for drivers in your situation.

It will be possible to ultimately secure auto insurance coverage, but it may end up being way more expensive than you planned for.

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Reducing the Cost of Auto Insurance for Teen Drivers

Whether or not you end up having to obtain your own auto insurance policy, it is a great idea to start finding ways to reduce the premium for your auto insurance coverage.

Two of the top ways for a teen to save on car insurance are:

  • Take a driving course
  • Drive a safe car

You can start by taking a driving safety course. This is often rewarded by auto insurance companies with a discount on your premium because it demonstrates that you are taking your responsibility to drive as safely as possible on the roads very seriously.

Another way to save some money on your auto insurance coverage is to find a relatively safe vehicle to drive.

The type of vehicle you drive has a direct impact on the price that you pay for auto insurance coverage. If you choose a reliable, safe car, you are more likely to get a reasonable rate on your auto insurance policy than if you try to insure a flashy sports car.

Remember that the auto insurance company is looking for you to make the most responsible choices you can in both choosing your car and driving safely.

The Last Words on Having a Car Insured Under Your Parents’ Auto Insurance Policy

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The major reason to have your car insurance through your parents’ current auto insurance policy is that it is probably a far cheaper option for coverage for you if you are a new or teen driver.

There are some reasons why this may not be an available option for you, such as if you have a very poor driving record or are financially independent and living on your own.

The best way to find out if a teen driver can be added to an existing policy is to call the auto insurance company and inquire whether this is a possibility.

Even if you cannot get insurance through your parents’ auto insurance policy, there are many ways to make sure that you are saving as much money on your car insurance coverage as possible, such as by taking a driving safety course and setting your deductible to a higher amount.

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