Should I shop my insurance when I add my teen driver?

Nobody likes to pay more for car insurance, and with ever-rising costs, finding a little room in the budget is more critical than ever. When your first child gets their driver's license, and they have to be added to the car insurance as a driver, there's typically a significant change in premium. We see about a 40% increase in pricing when adding the new driver, and normally, rates double if adding a car at the same time our new driver is added.

Given the significant changes to the premium, it's in your best interest to explore other insurance company's quotes. This proactive approach can potentially lead to significant cost savings, especially when navigating a major life change like adding a newly licensed driver to the household.

What's the best way to look at insurance pricing? Reach out to several options, including a captive agent, an independent agent, and the direct carriers. If you ever hesitate to do online quotes, reach out to someone by phone or in person.

When it comes to making coverage changes, it's always best to seek advice from a licensed insurance agent. While it may be tempting to lower coverages for a better price, a professional can guide you on the best course of action. There are also other discounts to consider when adding a teen driver, which we outline in this article.

While price is certainly a key factor, it's important to consider other aspects of your insurance program. Do you value technology and online access? Or do you prefer a more personal touch, such as a local office you can build a relationship with? By having your list of non-price priorities ready, you can ensure that the company you choose will meet your expectations in terms of the experience you're seeking.

A quick warning: looking at car insurance quotes can be a harmless activity, but actually switching to another carrier should not be done lightly. There are discounts associated with how long we're with the prior insurance company, so switching too often can ultimately cause us to pay more overall. It's recommended that unless there's a significant life change (i.e., moving or adding a new teen driver), we keep the same insurance company for a minimum of three to five years. Insurance companies value loyalty and thereby award someone who's consistently maintained coverage with the same company for a more extended period.

The bottom line: when adding your teen driver, better pricing can be available with another insurance company, but it's essential to weigh out non-price factors like your customer experience, whether having a trusted advisor is essential to you, and how you like to access your insurance program.