When Do You Add Child to Car Insurance? Should I Add my Child in 2023?

Child to Car Insurance
Child to Car Insurance

Did we just hear you scream in fear? We know this is a new adventure – filled with euphoria and trepidation. But what does this mean for your car insurance policy? Hanson & Ryan Inc. has been in the insurance business since 1876.

Not only are we the best auto insurance agents in New Jersey, but we pride ourselves on treating our customers like family – and our passion is to help you protect yours.

What happens if I don’t add my child to my car insurance?

If you don’t add your child to your car insurance and they use your car anyway, any accidents they have while driving might not be covered.

If they were in a wreck, your child (or you) would be responsible for paying the cost of the injuries and property damage they caused. They may also face legal penalties and lose their license.

Car Insurance Overview

Car insurance is a type of financial protection that covers the cost of another driver’s medical bills and repairs if you cause an accident with your car, or if your car is stolen or otherwise damaged.

Auto insurance protects you from paying for another driver’s injuries and repairs yourself after a collision.

Some types of insurance also cover damage to your own vehicle. To use your auto insurance, you must file a claim.

Once you make a claim, your company will assess the damages and pay a settlement up to your policy limits.

Most states and many lenders require you to have auto insurance coverage. In order to keep your auto insurance policy active, you will need to pay your monthly premiums on time.

If your policy expires, you won’t be able to legally drive and pay more for coverage in the future.

When Should I Add my Child to my Car Insurance?

You should add your child to your auto insurance policy when they receive their driver’s license. You don’t need to add them first.

What happens if you forget to add your child to the policy when they get their license? It happens sometimes.

In this case, we will add your child to your policy backdated to the day they received their license.

The same would apply if you unintentionally omit them from your policy and they are involved in an accident with one of the covered vehicles.

Your policy will still respond and your child will be added to the policy by the insurance company backdating to the day they received their license.

Should I Add my Child to my Auto Insurance with a Permit?

When your child gets their learner’s permit, they are not added as a “driver” on your car insurance policy.

This seems counterintuitive because they drive a vehicle, but they need a licensed household member with them to do so.

Instead, we recommend adding them as an “Authorized Driver” or “Household Member”. This will not increase your premium.

What happens if your child with a learner’s license is involved in a driving accident?

If this happens, your policy will cater for damage and/or liability coverage – another good reason to make sure your authorized driver is listed as a member of the household on the car insurance policy.

How Much Does it Cost to Add my Child to Auto Insurance?

Once your child is added as a driver to your car insurance policy, your premium will increase. To calculate the increase, your insurance agent will ask you which vehicle the child will regularly drive.

This ensures they are rated on that specific vehicle on the policy, but it does not prevent them from driving one of the household vehicles.

There are a few discounts to look for when adding your newly authorized child to your policy, including:

  • Good discount for students: If your child has an A or B average in school, he is eligible for this discount. You will need to provide a copy of your child’s report card or transcript. You are eligible for this reduction even after your child graduates from high school if they maintain an A or B average in college.
  • Driver Training Discount: Most companies offer this discount. You are automatically eligible for this discount if your child had to take driver training to obtain their learner’s licence.
  • Off-School Discount: You qualify for this discount if your child attends college more than 100 miles from your home and does not have one of the household vehicles with them.
  • Defensive Driving Course: This discount can apply to all drivers in the household, not just your child, if they take a defensive driving course. AAA and other companies offer driver training courses for a fee. Sometimes the discount that comes from the driver training course can be minimal.

The increase in premiums that comes with adding your child to the car insurance policy is significant.

You can ask your agent to quote your child on their own car insurance policy to see if it saves money.

We at Hanson & Ryan are happy to provide you with a quote, but we strongly suggest that you keep your child on your current car policy, especially if they have just received their license and are still in school.

There may be additional discounts that apply to your current policy that would not apply to your child’s policy, such as:

  • Multi-driver reduction
  • Multi-vehicle discount
  • Insurance history or loyalty discount: Most companies offer this discount based on how long you have been insured with them. The longer you’ve been with them, the better your discount.
  • Assurance Score: Like a credit score, but it’s a “soft” hit on your credit, not a “hard” one that will lower your credit score. If your teen doesn’t have a credit history, it can also hurt your premium.

The most important thing – for your child and for your premium – is that your child drives safely by staying alert, obeying all traffic laws, and ensuring that they are not distracted by cell phones or other devices. other distractions.

Ultimately, safety pays and your premium will not increase further due to claims or violations.

How to Get Cheaper Car Insurance after Adding a Driver

Comparing rates before you cover your teen or young adult is the best way to find cheaper car insurance when adding a driver.

Another company might be able to offer you a better rate, which could save you a lot of money in the long run.

There are other ways to get cheaper insurance after adding a child to your car insurance, like:

Dropping full coverage on your kid’s car: If your kid’s car isn’t worth much, don’t pay for full coverage. Instead, ditch full coverage (while maintaining their high liability coverage) and slash your rates dramatically.

Sign them up for a youth driving course: Some companies offer driving lessons that teach basic skills to new drivers. These are usually only for teenage drivers, but your child can get cheaper insurance by taking a course.

Get insurance per mile: Insurance based on the number of miles you drive could be a cheaper option, especially if you and your child of driving age don’t have long trips.

Reshop your policy if your rates are too high: You should make sure to compare car insurance rates every year when it’s time to renew your policy. Knowing when it’s time to switch to a lower rate can help you avoid price spikes year over year.

How to Add Someone to your Auto Insurance Policy

Adding a child to your car insurance policy is usually easy and straightforward. Whether you add your child to an existing policy or include them as a driver when you purchase new coverage, the process is similar.

Most insurance companies allow you to add someone new to a policy online, over the phone, or through the company’s mobile app.

When you add your child of driving age to a policy, you’ll likely need to provide the following information about them:

  • His full name and date of birth
  • Their social security and driver’s license number
  • Their main vehicle (if different from the one already insured)

You can also adjust your coverage if it is not suitable for your newly licensed driver.

For example, if you add your newly licensed teen to your policy with a car they will be driving, you may want to drop comprehensive and collision coverage for their car, but not yours.