Teens need more than just driving lessons and a license before getting behind the wheel — they also require auto insurance in most states. In most cases, this means adding your child to your policy.

Adding any driver to a car insurance policy will increase your rates, but this is especially true with a teen driver since they have less experience on the road and are more likely to engage in risky driving behavior. But you may be able to qualify for some discounts that can help keep costs down.

Here’s what you need to know about adding your child to your car insurance.

Why you should add your teen to your policy

Every state but New Hampshire requires drivers to carry a minimum amount of liability coverage before getting behind the wheel. While it may be possible for your teenager to get their own policy, premiums are typically cheaper if you add them to your policy instead.

If your teen is still learning to drive and not yet licensed, you may still need coverage. Check with your state laws about when it’s recommended to add a teen driver. And before letting your teen get behind the wheel, be sure to let your insurer know. Neglecting to do so could put you at financial risk if your teen causes an accident.

Pros and cons of adding a teen driver

Before adding a teen to your policy, be sure to weigh some of the benefits and drawbacks.

Cost of adding a teen to your policy

Adding a teen driver to your car insurance can increase your premiums significantly since age is one of the most important factors that affect auto insurance rates.

Not only are young drivers typically more likely to cause car accidents than their older counterparts, but they’re also more likely to be involved in fatal traffic accidents. If your teen gets any traffic violations on their driving record, your insurer may raise your premiums.1

The type of car your teenager drives can affect your rates, too. Choosing a safe car will protect them on the road and help reduce insurance premium costs.2

Unfortunately, there’s no way around some of these extra costs when you add a teen driver to your policy. But shopping around to find the best rates for families with young drivers and asking about discounts can help.

Consider these insurance companies as you start to compare rates:

How to add a teen driver to your policy

If your child is about to get their driver’s license, here’s how to add them to your policy:

When should your child get their own car insurance policy?

Insurance companies generally require all drivers insured on a policy to live in the same household. While some insurers offer exceptions for a college student who is away at school, once your child moves out of your house, they’ll typically need their own policy.

Car insurance companies may also require your child to get their own policy if they have a car registered and titled in their own name. Some insurers require the primary name on the insurance policy to match the name on the vehicle.

But even if your child still lives with you or drives a car titled in your name, you may still choose to remove them from your insurance policy if they’ve shown they can’t drive safely. A driver on your policy who has caused accidents or moving violations could increase your insurance premiums significantly or even cause you to lose your coverage altogether.3

How to lower your car insurance rates with a child on your policy

Though adding a teen to your insurance policy may increase your rates, parents have options for reducing insurance costs with a teen driver.

Shop for a better rate

Auto insurance companies use a number of factors to set your rate, including driving history, age, marital status, credit history, and ZIP code. Shopping around and getting multiple quotes is the best way to find the cheapest rates with a teen driver.

Look for discounts

Many insurers offer discounts geared toward teen drivers. Good student discounts lower rates for teen drivers who maintain a certain GPA, while student-away-at-school discounts help you save when your teen is living away from home during the school term.

Adjust your deductibles

Your deductible is the amount you pay before your insurer kicks in any payment for a claim. Raising your deductible lowers your premium costs, which can make coverage more affordable. Just remember that you’ll have to pay the increased deductible if you make a claim. Those additional out-of-pocket costs could hurt your budget after an accident or other claim.

Buy a safe car

Safer cars are cheaper to insure than cars without certain safety features. Your insurer may even offer discounts for certain safety features, such as anti-lock brakes or blind-spot detection.

When shopping for a safe car for your teen driver, the Insurance Institute for Highway Safety (IIHS) recommends that parents look for the following qualities:

• Larger than 2,750 pounds (light vehicles may not provide enough protection in crashes with other vehicles)

• Appropriate horsepower relative to weight

• Standard automatic emergency braking

• Dry braking distances of less than 145 feet from 60 mph

The IIHS also offers a list of recommended safe cars for teens.

Safe driving practices

Driving safely is one of the most effective ways to get and keep low auto insurance rates. Safe driving practices help prevent accidents and citations for traffic violations.

In addition to teaching your teen how to drive safely, you may also want to enroll them in a driver training course or defensive driving program. Many insurers offer discounts to teens who have successfully completed these types of classes.

Telematics programs

Telematics programs use plug-ins or mobile apps to measure risky driving behavior, like speeding and sudden braking. Many insurers offer an initial discount to policyholders for signing up for a telematics program. Safe driving is generally rewarded, but reckless driving, like speeding, could raise rates.