May 26, 2023
Whether your teen is just starting driver’s training or is about to get their driver's license, you may be feeling a lot of big emotions about seeing them behind the wheel.
You want to do everything you can to keep them protected on the road—and part of that is making sure they're covered with the right car insurance policy. Car insurance for teens can be a little confusing, but we've got answers to your most pressing questions.
There are 2 paths to insure a teen driver:
Typically, parents choose to add teen drivers to their own policies, and for good reason. Standalone policies for teen drivers are notoriously expensive because inexperienced drivers are the most likely to be in a crash; according to the AAA Foundation for Traffic Safety, the crash rate for drivers ages 16-17 is about 4.5 times higher than for drivers ages 30-59.1
By adding a teen driver to your existing auto policy, you can get them the same coverage you have for a lot less money. And since you're probably paying for your teen's insurance either way, those are savings you'll want.
Laws regarding teen drivers and auto insurance vary by state. In some states, teen drivers aren't required to be named on an insurance policy until they have a driver's license. In others, insurance coverage is required even for teen drivers who have a learner's permit. In California, teen drivers are automatically covered under their parent/guardian's insurance once they obtain a learner's permit, so no action is required until a teen gets a driver's license.
If you previously excluded any non-driving teenagers in your household and you now want them covered, be sure they're no longer excluded before they start driving.
It's not uncommon for teens to start off driving their parents' cars. In general, a teen driver is covered to drive a parent or guardian's car as long as they're listed on the same policy as that vehicle. This is another reason why it often makes more sense to add a teen driver to an existing policy rather than to purchase a separate policy. Your vehicles should already be on your policy, so adding your teen will ensure they are covered when they drive any of them.
If your teen gets a first car of their own, you'll simply need to make sure it's added to your existing insurance policy. You can do this by contacting your insurance agent and providing the unique vehicle identification number (VIN) and other details about the new vehicle. In most cases, you should be able to get your teen's new car added to your policy in a matter of minutes.
When you add your teen's car to your insurance, be sure to consider what types of coverage you have and how much of each will be needed. Typically, liability coverages are set at the policy level, but collision and comprehensive coverages can be set by vehicle. For example, many teens' first vehicles are older used models that don't have a lot of resale value, so it may be more economical to forego collision coverage (though this isn't always the case). The best way to ensure your teen's vehicle is properly covered without spending more than is needed is to speak with a trusted insurance agent.
However, if your teen has their own car and no longer lives with you, they may need to get their own auto policy.
Need to add a teen driver or their car to your AAA auto insurance?
Because car insurance typically covers drivers who live at the same address, your child can be listed on your auto insurance policy as long as they are living with you—whether or not they're a teenager. To save money, many parents and guardians keep their kids on their policies until they move out.
Once your teen (or older) driver moves out, they'll need to get their own insurance.
What if my child is away at college?
One exception to the same-address provision is if you have a student away at college: Most insurance carriers will allow parents to keep college students on their policy until after graduation, but exact requirements and stipulations may vary. For example, it's not uncommon for insurance carriers to request a copy of your child's enrollment paperwork or current course schedule to keep them on an existing parent/guardian policy.
Most insurance carriers offer auto insurance discounts for teen drivers. A "good student" discount is one of the most common savings offered, with the exact savings and qualification requirements varying between carriers. In general, this discount is offered to students who maintain a certain GPA while enrolled in school either part- or full-time. You may need to show transcripts or report cards as proof of GPA to qualify and renew this discount.
Some insurance carriers also offer discounts for teen drivers who provide proof of completing an approved driving school or driving course.
Need to add a teen driver or their car to your AAA auto insurance?
Log in to your account or call us to make changes to your policy.
AAA resources for teen drivers
Help prepare your teen for the road with online driver training, as well as teen driver workshops and AAA driving schools available in select areas.
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1AAA Foundation for Traffic Safety, "Rates of Motor Vehicle Crashes, Injuries and Deaths in Relation to Driver Age, United States, 2014-2015," June 2017.
