Two years ago, I added my first teenager to our auto insurance, and the total cost of our policy doubled. I just added my second teenager, and the cost nearly doubled again.
Two friends told me that we are not required to add teens to a policy. My friends insist that, if one of my teens has an accident, she will be covered by the uninsured motorist coverage of my policy, the same way it would cover if I let a friend or neighbor drive my car. According to my friends, the only downside is that, five years or so down the road when my teens get their own cars and insurance, they will pay more because they have not previously been insured.
Does this sound right? Is it legal? Is there some downside I am not aware of?
When my kids were becoming drivers age (my baby is 32), USAA told us that we did not need to add them to our policy while they had learners’ permits. But we MUST add them once the received a driver’s license. Excluding them was not an option, even if they were not going to be allowed to drive.
With the current insurance market (and i am not an attorney)I’d suggest some strategies. My youngest is now 24 and is a paramedic. So after 11 teen drivers, no, that’s not a typo, here is what I would do if I were recycling that mess in 2026:
By a beater car. Each driver has their own insurance. Minimal liability, no collision, they do not ever drive the family cars. Tell them that you have added a tracer to the car. If they do stupid things, they lose the keys.
Up your umbrella policy in the event that there is some crack in the legal wall.
As to your immediate question about adding teens, your friends are flat out wrong (as someone else pointed out). Underinsured and uninsured covers you IF the other driver is at 51+% at fault. It has no effect at all if you let your teen drive or a neighbor borrow your car. They will be under your policy. The teens, you must add to your policy. End of story.
We understand wanting to save on insurance, but auto insurance policies usually require you to include all licensed drivers in your household, which includes your teenager(s). If you don’t list your teenagers on a policy and they drive your car, if an accident happens, your insurance can deny the claim and potentially even cancel your policy as a result. Uninsured motorist coverage only protects you if someone else causes damage to you or your vehicle, not if your unlisted teenager is driving your car.
While some parents may take the risk of not listing their teenager(s) in hopes of saving money, the ramifications of this decision are serious: exposing yourself to liability, dealing with potential legal issues, and being denied coverage for the accident. If insurance companies determine that you are underreporting drivers in your household, they may flag your account, which could result in more expensive or difficult-to-obtain insurance going forward.
In conclusion, while your friends’ suggestion may seem “smart,” the legal and financial risks of having an unlisted driver outweigh any possible short-term savings. The best advice is to list all of the licensed drivers in your household on your insurance policy, even if that increases your premiums. You can also ask your insurance provider about multi-car discounts or good student discounts to help mitigate these additional costs.