Should young adults get their own car insurance? For many young adults, getting a driver’s license is one of the most exciting milestones in life. It represents freedom, independence, and the beginning of new responsibilities. But along with learning how to parallel park and obey speed limits, there’s another important lesson that comes with driving: car insurance.
One of the most common questions we get from families is, “Should my child get their own policy, or should we just add them to ours?” It’s a great question—and the answer depends on a few key factors. Let’s break it down so you can make the right decision for your family and your future driver.
Adding a Young Driver to a Parent’s Policy
In most cases, this is the more affordable and convenient option.
Why? Insurance companies typically offer multi-vehicle and multi-driver discounts, and a parent’s established insurance history helps keep the premiums lower than a new, stand-alone policy for a young adult with little or no driving record.
Pros:
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Lower premiums. Young drivers are considered high-risk, so their rates are naturally higher. Being on a parent’s policy helps offset this cost.
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Shared coverage. Everyone in the household is protected under one plan, which simplifies paperwork and billing.
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Bundling benefits. If your home and auto insurance are bundled, adding another vehicle or driver may increase your discounts.
Cons:
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Increased premium. While it’s usually cheaper than a separate policy, you will still see a noticeable increase in your premium with a young driver added—especially if they’re under 25.
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Risk of affecting the parent’s record. Any accidents or claims filed by the young driver could impact the parent’s policy history and future rates.
Tip: If your young adult is living at home and driving a family vehicle, this is usually the best option. Make sure to notify your insurance broker when your child gets their G2 or full G license so they can be added properly.
Getting Their Own Insurance Policy
There are situations where getting a separate insurance policy makes more sense—especially if the young driver owns their own car and is financially independent.
Pros:
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Builds their own insurance history. Starting early can help a young adult establish their own record, which can lead to lower rates over time.
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No impact on the parent’s policy. Accidents or tickets won’t affect the family plan.
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More control. The young adult can manage their own policy, payments, and coverage based on their needs and budget.
Cons:
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Higher cost. Without the benefit of a parent’s established history, young adults will likely pay more for their own insurance—especially if they’re under 25.
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Limited options. Some insurers may be hesitant to offer a policy to a brand-new driver, and coverage options might be more limited.
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May not be eligible for bundling discounts. If they’re not yet homeowners or renters, they miss out on savings from bundling policies.
Tip: If your young adult is moving out or purchasing their own vehicle that won’t be used by the rest of the family, it may be time to look at separate coverage. A trusted insurance broker can help compare policies and find the best fit.
Other Considerations
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Type of License: In Ontario, drivers with a G1 license are not eligible to drive alone, so they don’t need to be listed as a driver yet. Once they earn their G2, it’s time to inform your insurance provider.
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Vehicle Ownership: If the car is registered in the parent’s name, it should be insured under the parent’s policy. If it’s in the young adult’s name, they’ll likely need their own policy.
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Driving Habits: Will your teen be commuting to school every day or just using the car occasionally? Usage can affect premiums and help tailor your coverage.
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School Status: Students living away from home part-time (like for university) may qualify for occasional driver status, which could help lower costs.
Final Thoughts: Talk to Your Broker
Every family’s situation is unique, and what works for one household may not work for another. That’s why it’s important to speak with your SurNet Insurance broker who can walk you through your options and find the most cost-effective and practical solution.
Whether you’re preparing to add your teen to your existing policy or helping them take their first steps into the world of independent car ownership, having the right insurance coverage gives everyone peace of mind.
We’re here to help make that transition smooth, affordable, and safe. Have questions about your teen driver’s insurance? Reach out to us anytime—we love helping new drivers get started on the right foot.
