When Your Children Need Their Own Auto Policy

You may have one or more teenagers at home who are driving or about to begin. You probably have questions about car insurance. Do you add your teens to your policy, or should they have their own? The answer depends on your particular circumstances. At some point in the next few years, your children will need to transition to their own policy, but when? You need to understand some basic insurance facts in order to make these determinations. 

Brand New Drivers

When your teenager gets their learner's permit, you will need to check your state's regulations about insurance. In some areas, you will need to add your child to your policy as soon as they get a permit while others only require that you do so when your child begins to drive alone. Your insurance rates will probably rise significantly. However, If you allow your child to habitually drive your car without adding them to your policy, your company might fail to pay out if they are involved in an accident.  

Separate Vehicles

Teenagers will pay higher rates simply because they are a high-risk group. They are in a disproportionate number of accidents compared to other age groups. If they have their own vehicle, it might be cheaper to insure them separately, particularly if their car is an inexpensive model. If they only opt for liability insurance, your child may pay less for their own policy than their share of your policy.

Older Children

You may opt to keep your child on our policy for some time in order to help them save money. However, at a certain point, they should get their own insurance. For instance, if they move out of state, they need to get a policy that reflects their address and not yours. Also, once your child is making a reasonable amount of money, they should take responsibility for their own policy. However, if your child is 22 and still living with you or near to you and struggling for money, keeping them on your policy is a good idea. You should routinely check with your insurance agent about which options are best for you and your family.

Children and their auto insurance can be a perplexing problem. Adding them to your policy will be costly, but you need to conform to the law of your state. You can keep them on your policy for an extended period of time in some instances, but that path may not be best for you. Sit down and discuss the insurance question with all the parties involved (such as those from http://esiinsurance.com/) before you make a decision.