Young Drivers on Your Policy: What to Know
If you have a child between age 21 and 30 on your policy who no longer lives at home, this page may answer some questions you might have about potential savings to your insurance program. If you would like to have a direct conversation with us about this, please don't hesitate to connect with your account manager by calling us at 617-542-1915 or sending a brief email to info@dwightrudd.com.
Is my household situation applicable?
Our records show your policy includes a driver between the ages of 21 and 30. For some families, their child has moved out of their childhood home and is no longer driving the household's cars regularly (or at all), but the policy hasn't been updated to reflect the change. We try to flag these annually to ensure our records match clients' actual situation.
Why would removing a driver save money?
Carriers price a policy based on the risk profile of everyone listed on it. Drivers in their twenties are a statistically higher risk than older, more experienced drivers. As such, younger drivers' inclusion on a policy can raise the cost across every vehicle, not just the one they're associated with. If your child is no longer living at home or consistently using your vehicles, there's often no reason for that cost to remain.
My child moved out. Should I remove them from my policy?
Like so much in life - it depends! As a general guide:
- Moved out permanently, doesn't drive your vehicles: Usually a good candidate for removal.
- Away at school, but comes home on breaks: Can sometimes be reported to the carrier for a discount, rather than full removal. This keeps them covered when they're home without the full premium impact.
- Moved out but still borrows the car occasionally: This one needs a conversation to ensure there is no coverage gap if something happens.
What if my child still has their license at our address?
Whether someone needs to stay listed often comes down to whether they still have regular access to your vehicles, rather than where their license is registered. If you aren't sure how to proceed, please reach out to us so we can discuss this with you.
Does this affect our umbrella policy too?
It can. If your umbrella policy currently extends coverage to your child as a resident relative, that coverage may need to be looked at separately once they've formally moved out. We will consider that when making our recommendations.
If my child gets their own policy, will the two policies cost less than what I am paying now?
Not always. A standalone policy loses some of the discounts that come with being part of a larger household package policy (multi-car, loyalty, etc.). In addition, a young driver on their own policy carries the full weight of their age-related rating instead of it being spread across the household. Sometimes it works out to real savings, sometimes it's roughly a wash. The only way to know is to gather information for your specific situation and calculate the options. We'll be happy to run the numbers for you.
What do I need to do right now?
If you think we should have a conversation about removing your child from your insurance program, the easiest first step is to email or call your account manager. They'll be able to tell you what, if anything, makes sense for your household. If you'd rather not act on this today, no action is required. We will check in with you periodically to see if any updates are needed.
Don't hesitate to contact us by calling 617-542-1915 or sending an email to info@dwightrudd.com.