Should I put my newly licensed child on an auto insurance policy of their own? If you have a newly licensed child, it can be advantageous to put him or her on your auto policy instead of getting their own.
You have a decision to make when it comes to having a newly licensed child in the house. You can put them on your auto insurance or put them on a policy of their own. You want to look at the cost benefits of each and determine which is the best option.
Often, it is going to be more affordable to put your child on your auto policy because you will be able to get the multi-driver discount. This can be a substantial savings because it does not double each time you add a driver – it goes up incrementally.
If you were to have your child get an auto policy of their own, it is going to be expensive and that’s because of several factors. One, they are young and insurance is always expensive for the young because of inexperience. Two, they don’t qualify for a multi-car discount or a homeowner’s discount, so they are paying full face value for a policy.
It’s understandable that you want to have your child on his or her own auto policy because you don’t want to see your insurance climb. However, you can add your child and have him or her pay you the difference rather than making them get their own policy. This allows you to teach them the value of money without being completely financially responsible for them.
In the end, it’s best to do some comparisons. Some students, especially ones with good grades, can qualify for low rates. If you have had several accidents on your own driving record, your insurance may be reflective of those and therefore it could be more affordable for your newly licensed child to have their own policy.
Call and get quotes to add to your policy as well putting your child on an auto insurance policy of their own.
Once you have the numbers in front of you, it will be easier to make a decision and see what you want to do.