Why Your Teen Driver Can Double Your Insurance Bill (and What You Can Do About It)

But here’s the good news: understanding why insurers require your child to stay on your policy (often until age 25 or until they own their own car), and knowing which rating factors affect their price, can save you frustration, money, and time when shopping for coverage.

Why New Drivers Must Be Added to Your Policy

In California, insurance companies require all licensed drivers living in your household to be listed on your policy. That includes your child as soon as they get their license.

Even if they only drive once in a while, your insurance company still sees them as a potential risk. Leaving them off your policy could create problems if they get into an accident, your claim may be delayed, denied, or leave you financially responsible. By adding them, you ensure that they’re fully protected and you avoid any coverage gaps.

Why Kids Stay on Your Policy Until Age 25 (or Until They Have Their Own Car)

If you’ve ever wondered why your child has to stay on your insurance for so long, you’re not alone. Here’s why:

• Risk Profile: Drivers under 25 are statistically more likely to be in an accident. Insurance companies base rates on data, and young drivers fall into the highest-risk category.

• Household Access: If your child lives with you and has access to your car, they must be listed — even if they don’t drive daily.

• Separate Ownership: Once your child buys their own car and gets their own policy, they can be removed from yours. Until then, they remain part of your household’s coverage.
  

The Rating Factors That Drive Young Driver Premiums

Insurance for young drivers is based on more than just age. Here are the biggest factors companies look at:

1. Driving Record – Tickets, accidents, and DUIs increase premiums. A clean record helps bring costs down over time.

2. Vehicle Type – Sports cars and luxury vehicles are more expensive to insure than safe, reliable sedans.

3. Location – Living in high-traffic or high-theft areas often means higher rates.

4. Annual Mileage – The more they drive, the higher the exposure, which can affect costs.

5. Discounts – Good student discounts, safe driver programs, or telematics (apps/devices that track driving) can offset high premiums.

👉 Fun fact: In California, credit score cannot be used as a rating factor for personal auto insurance. That’s different from many other states.

Tips for Parents to Keep Costs Manageable

Yes, adding a teen driver will raise your rates — but you don’t have to break the bank. Here are some strategies that help:

• Ask about discounts – Many carriers offer “good student” or driver training discounts.

• Choose the right vehicle – Adding your teen as a driver to a safe, modest car will usually cost less than a sports car.

• Consider a telematics program – These track driving habits and reward safe drivers with lower rates.

• Shop around – Every carrier calculates risk differently, and the price gap between companies can be huge for young drivers.
  

Bottom Line

Adding your teen to your auto policy can feel overwhelming, but it’s part of keeping them safe and making sure your family is fully covered. The silver lining? With time, experience, and a clean record, their rates will drop — usually starting at age 25.

If your child is about to get their license (or is already driving), now is the best time to review your coverage. I work with multiple carriers, compare real quotes side by side, and never charge broker or agency fees.

👉 Request your free quote today and I’ll help you find the right coverage at the best value for your family.

Kayla Bejarano – Licensed California Insurance Agent (CA License #4187865)