If cost is the primary concern, it is almost always less expensive to add children to the parents’ policy.  They get the benefit of multi-car discounts and the parents’ preferred pricing tiers.  Depending on the number of vehicles, they may get lower “occasional operator” rates.  And if they go off to college without a car, they will be eligible for a reduced rate.

There are valid reasons why some parents prefer to have children on their own policies.  First, it develops responsibility to pay for their own vehicle and insurance.  Also, you can choose different limits and deductibles that may be more appropriate for a youthful operator.  There may also be a legal benefit in protecting the parents’ assets if the car is in the child’s name.

Please contact us to review your options when your teen starts driving.  Most companies start charging when your child gets a license.  Even if you forget to tell us right away, the companies still charge you back to the date of licensing.  These rules change from time to time, so it’s a good idea to give us a call when your child gets a permit.

For some information on safe driving for teens, check out Erie Insurance’s Teenage Driving Safety page.

For more information, drop by our website at www.albionagencies.com, or get in touch with me.

The information in this post is general in nature, and geared toward insurance conditions in Western New York.  As always, you should speak with an insurance adviser to determine your specific insurance needs.