Texas Department of Insurance

Helping Texans with their auto, commercial and residential property insurance needs.

A free service of the Texas Department of Insurance and Office of Public Insurance Counsel.

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Auto Insurance for Young Drivers

Young drivers must comply with the state's financial responsibility laws. Parents can usually add their children to their auto policy to satisfy the financial responsibility requirements. Adding a young driver to a parents' policy can be expensive, but it's cheaper than buying a separate auto policy.

Some policies require all drivers to be named on the policy for coverage to apply. Therefore, it's important that you list all family members on the policy as soon as they reach driving age. If you don't have all of the drivers in your family listed on your policy and the company learns about them later - because of an accident claim, for instance - the company will bill you for the extra premium you should have paid and could deny your claim and coverage.

If you have children attending school away from home, tell your insurance company. Because companies base rates on where a car is usually located, it might need to adjust your premium. If the school is in another state, check on the financial responsibility laws in that state to make sure you have the appropriate coverage.

Generally, if a teenager is the principal driver of a particular automobile, the company will base the teen's rate on that car. Otherwise, the company will assign the teenage driver to the car (usually the most expensive) in your household that produces the highest rate.

Removing Your Children from Your Policy

You may want to remove your children from your policy when they no longer live with you. You'll probably have to prove to the insurance company that your child has moved. You can use documents like a driver's license, lease agreement, or utility receipts to show that your child has a separate address.

It's probably not a good idea to remove children from your policy if they are attending school away from home. It's risky to drop coverage if your teenager might occasionally drive at school or when home on visits. Many insurance companies will require you to keep students on your policy, even if you would like to remove them.

Saving Money on Insurance for Young Drivers

Some insurance companies give a discount for teenagers who complete a Department of Public Safety (DPS)-approved driver education course. Drivers taught by their parents may also be eligible for the discount if the parent used a DPS-approved course. Some companies offer discounts to young drivers who make good grades in school or who belong to certain youth groups. Ask your agent or a company representative about discounts.

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Last updated: 10/07/2015

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