Adding Young Drivers to Your Insurance Policy

By Team
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Perhaps your teenager just passed her driving test and is now a G1-licenced driver. Or maybe your son is coming home for the summer with a G-license. Whatever the situation may be, chances are, they are insured under your vehicle policy. What would this mean for you?

Below we’ll take a look at how you can maintain your insurance standing even with younger drivers listed.

Adding one or more young drivers

Automatically, you can usually expect an increase in premiums by adding another driver to your policy. With the exposure a new driver brings, your insurance company will do an assessment to see what kind of increase you can expect. Regardless of the additional cost, it’s a good opportunity to teach your child responsibility and you may want to consider having him or her pay the amount of the premium increase.

Age matters

Age — and experience — matters when it comes to just how much of an increase you’ll see in your rate. A driver who is 16 to 24 will automatically cost you a higher premium. A child who is 25 or older will be added as a secondary driver on your policy, and his or her driving record and experience will be assessed when determining the type of increase you can expect to see.

The key factor is your kid’s driving record/age ratio. A 25-year-old driver with a clean driving record will cost you substantially less than if he or she were 24 and had the same clean record. Also, if your son, for example, is a part-time driver of your vehicle, the cost will be incrementally less than if he is a full-time driver, as stated on your policy.

Your child’s driving record

Does your young driver have a few speeding tickets on her record? If she is added as a secondary driver on your policy, her spotted driving record could cost you a 10-star policy rating, regardless of her age.

Teaching responsibility

If you do have a bad driver under your roof, take charge. Don’t let their bad habits ruin your hard-earned good standing with your insurance provider or your star rating. If you are inOntario, you must have all drivers who reside under your roof and use your vehicles on your policy — but there’s an exception to this rule.

The OPCF 28A is a form you can add, excluding your child from your insurance policy.  You will have to sign the document stating that your child is in your household but not driving your vehicle, thus helping protect your rate and your star rating.

How to avoid policy setbacks

Your child got a speeding ticket — but didn’t tell you. Does this mean you’re in the clear because you didn’t cause the infraction? Not necessarily. Your insurance provider may find out about it when you go to renew your policy. Additionally, if you apply for a new policy, the ticket may surface when your record is being reviewed. As the policy holder, know that you are fully responsible for knowing the records of all secondary drivers on your policy. You could face an increase due to your child’s mistake.

If your child does choose to get their own insurance, be sure to have him or her visit where he or she can compare rates from over 30 competing insurers for the lowest rate available.

Other helpful insurance articles:

-Find out what is an OPCF 28A in the "Did You Know?" section of the Insider

-What are the consequences of major and minor tickets?

-Learn summer safety driving tips

-"My child is home from university for the summer. Do I have to add his or her name to my car insurance policy?" Click here to read the answer.