Getting a Policy for Your Teenager

My teenage daughter is currently on my car insurance policy. She does not own a car. Adding her to the policy made my premiums triple. What is the best way to insure her and decrease my car insurance rates?

Answer

Your rates will decrease drastically if you remove your teenage daughter from your policy. In order to do so and keep her insured, you would have to purchase a policy of her own. Because she does not own a vehicle, this would not be possible unless you included her name on the title to one of your cars. Another complication might arise if your daughter is under 18. If she is a minor, she might not be able to have an insurance policy on her own. Additionally, a separate policy for your daughter will have much higher premiums than you are paying now. In other words, removing her from your policy to buy another policy would end up costing more overall.

An alternative to removing her from your policy is to maximize the discounts for which she qualifies. For example, most car insurers offer a good-student discount for young people who earn above a certain GPA. Similarly, you might have your daughter take a defensive driving course to qualify for an additional discount. Having her complete an approved driver education or defensive driving course could save you up to 10% on your premiums.