Adding someone to your car insurance policy can change your car insurance in different ways, some of which may be surprising. Most of the time, your insurance premiums may go up, but there are times where adding a driver onto your policy can actually save you money.
Adding a Teen Driver
Say your child has just gotten their license. They will be sharing your vehicle so they can get to and from school, so you add them to your policy. In this case, your car insurance premiums will likely jump a significant amount. In fact, your rates could jump as much as 130% after adding a teen driver.
This is because teen drivers are statistically more likely to get in an accident than any other age group, primarily due to a lack of experience. When your teen gets their own policy, you will see a drop in your premiums once again.
Adding a High-Risk Driver
High-risk drivers are drivers who insurance companies consider risky to insure. Teen drivers are considered high risk drivers, but other age groups can fall under this category, as well. High-risk drivers are generally those who have:
- DUIs or DWIs
- Multiple traffic tickets
- Multiple speeding tickets within a short amount of time
- Poor credit score
Adding a high-risk driver can raise your rates. In some cases, however, you may be barred from adding a high-risk driver. Some car insurers have what are called “excluded drivers.” Excluded drivers are people that live in your household who your insurer excludes from your car insurance policy. This means that the driver in your household listed as an excluded driver will not be covered by your insurance policy if you allow them to operate your vehicle.
Excluded drivers should be listed on your policy.
Adding Another Driver
So what happens if you add a driver who is not a high-risk driver? If you add someone who has a better driving record or credit score, you can actually save money on car insurance. For example, say you add your mom to your car insurance policy since you will be sharing a vehicle. She has had more time to build up her credit and has a clean driving record. If you have a poor driving record or low credit score, you may see a drop in your rates by adding her to your policy.