Parents usually get the shock of their lives when they hear how much it will cost to add a teenage driver to their auto insurance policy. It is not uncommon to pay 2 to 3 times more for insuring a teenager and that is assuming they don’t have a ticket or accident. When parents decide that their teen can drive, they need to realize it will increase the auto insurance substantially. However, there are some insurance companies that will allow you to "exclude" your teenager (or other drivers specifically by name) from your policy. As a result, I've run into more than one case where the teenager has been excluded from the insurance policy. I am often asked what the repercussions from the exclusion are?
One example, you have a 17 year old boy who would like to take your new Corvette to the high school prom. Your son is trying to impress his date and decides to race someone at a stop light then hits another car going 80 miles per hour. If you excluded your son from that vehicle there would be NO COVERAGE for the damage to any of the cars involved, NO COVERAGE for those injured (including your son) and NO COVERAGE for property damage.
This situation could end up costing you hundreds of thousands of dollars out of pocket. Most likely, it doesn’t make sense to exclude a teenage driver from your auto policy.