So, you’ve finished high school. Now you are in the world of being an adult. And guess what? You’ll have lots of paperwork and lots of calls to the insurance company that knows everything about you, but did you ever call them?
How difficult can it be to add another driver to your insurance policy? You are calling them, telling your name, and you are covered! Nope, and there are some things you should know before you make a call. They are:
You are usually unable to just add yourself to the insurance policy of someone else. You’ll need the cooperation of the policyholder. In your case, it is going to be your Mom or Dad, whoever currently holds the insurance policy. So, you’ll need to give them your driver’s license and answer some questions about your driving history.
The policyholder is calling their insurance company. It may be State Farm, Geico, Progressive or whomever provides them with an insurance. They’ll ask your full legal name, date of birth, driver’s license number and maybe even your Social Security number. Sorry, but the insurance loves to collect data.
But the good news is here. There are ways to reduce your expenses after adding yourself to the policy. The Good Student Discount exists. If you were a good student during your high school career and have good grades, then you may get 10% to 25% discount. Taking the Defensive Driving Course is another option. It is available in many states online for less than $50. Such insurers as Allstate and USAA provide telematics services via Drivewise and SafePilot applications. If you do not abuse your privileges behind the wheel, it’ll help you save some money.
There is another interesting point that people often overlook. You have to tell the insurer what type of car you are going to use. It is important, because the price of insurance for 2015 Honda Civic will differ greatly from the one of 2023 BMW X5 you’ll use occasionally. The insurance calculates all the necessary data: the age and reliability of the car, the costs of repairs and the risk of theft.
Don’t forget to mention where you’ll park this car. If you are headed to the college located outside the city or state, you are going to change something. Some insurance companies may provide you with a discount if you are away from home without a car more than 100 miles. The companies Progressive and State Farm have the student-away-at-school provision. And you definitely should check this opportunity. But please don’t lie. If you file a claim later and they’ll find out that your address wasn’t correct, you won’t receive any compensation. This is one of those days you don’t want to experience.
Adding yourself to your family insurance policy is cheaper than having an independent policy. The cost of independent policy for an 18-year-old may vary from $4,000 to $6,000 per year. It is ridiculously expensive. Adding yourself to the policy of your parents or guardians is much cheaper and sometimes it will be halved. This is one of the rare cases when staying on a family plan financially makes sense.
The process of adding the new driver is fairly simple. Usually, it is one phone call and 15-30 minutes of your time. Some companies like Geico and Progressive allow you to add another driver using the web or mobile application. You’ll receive an updated declarations page which will tell you your new coverage. The information should be also shown on your insurance cards. Don’t forget to have an updated insurance card in your car. Because if you’ll be stopped for driving without a proper coverage, it will cost you a lot.
If you buy your car for the first time, then it is better to have everything done before leaving the dealership. Dealerships require your proof of insurance for completing the sale of the car. Private sellers also should ask for it. Be the person who doesn’t buy the car and drives away without insurance, thinking that you’ll manage everything later. You will regret it.
Starting from today your driving record becomes your report card for insurance company. One speeding ticket may increase your rates by 20%-30%, and one at-fault accident will double your rate. It is the period of three years, when your driving habits form your insurance profile. You should drive like you have somewhere to go, but not like you are late.
Adding another driver to your policy is a simple process. But it requires some time, effort and expenses. And it is better the sooner you solve this problem.