Auto guide · 2 min read

Adding a teen or new driver to a Grosse Pointe household policy

A new driver in the house is the biggest single change most families ever make to an auto policy. It is also the one with the most folklore around it. Here is what actually matters.

When the teen has to be on the policy

Most carriers want to know about a licensed driver in the household as soon as they are licensed, and many ask about permit holders too. Not listing a licensed teen is the kind of omission that causes trouble at claim time. Tell Carly when the permit is issued; the permit stage is often free or low-cost, and it puts the household on the right footing when the full license arrives.

What drives the price

Three things: which car the teen is rated on, the coverage on that car, and discounts. A teen listed as the primary driver of a ten-year-old sedan with liability-focused coverage costs far less than a teen rated on the family’s newest SUV with full collision. Good-student, driver-training and telematics discounts are common and add up. Ask about each of them specifically.

The college question

If a student goes to school more than a set distance away and leaves the car at home, most carriers have a “student away” discount. If the car goes with them, the garaging address changes and so does the rate. If they are in a shared house with roommates, the roommates are not covered by your policy. Tell Carly the school, the distance and whether a car is going — it changes the answer.

Liability limits matter more, not less

A new driver is statistically the most likely person in the house to cause a serious accident. This is the moment to review bodily injury limits and to ask whether a personal umbrella makes sense. The cost of another $250,000 of protection is usually small compared with the exposure.

This guide is general information about insurance in Michigan, not advice about a specific policy. Coverage depends on the policy’s terms, limits, exclusions and eligibility, and a request does not bind or change insurance.

Common questions

People also ask.

My 16-year-old only drives with me. Do I still have to list them?

Once licensed, yes in most cases. Carriers rate by household drivers, not by how often someone drives. Ask Carly how your carrier treats permit holders.

Can I exclude my teen from the policy to save money?

Some carriers allow a named-driver exclusion. It means the teen has no coverage if they drive any car on the policy — including in an emergency. It is rarely the right answer for a driver who lives in the house.

Do good grades really lower the rate?

Most carriers offer a good-student discount for a B average or better, verified with a report card or transcript. It is one of the larger discounts available to young drivers.

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