Adding a driver to your State Farm auto insurance policy can increase your premium, but the amount will depend on several factors. Here’s what you need to know about how adding a driver impacts your State Farm car insurance rates.
Who Needs to Be Listed on Your Policy
Any licensed driver who uses your insured vehicles, even occasionally, needs to be listed on your policy. That includes:
- Teenage children when they get their license
- Your spouse or domestic partner
- Roommates or other family members who drive your car
- Anyone else who drives your car more than once or twice per year
Leaving a regular driver off your policy can put your insurance coverage at risk. Make sure to contact State Farm as soon as there is a new driver in your household.
Why Your Rates May Go Up
Adding drivers tends to increase insurance premiums because there are more people using your vehicles who could potentially get into an accident. Insurance companies calculate your rate based on the risk of claims being filed, so more drivers means more risk exposure for them.
Some key reasons your State Farm premium might increase when you add a driver:
Inexperienced drivers: Teen drivers and others with less driving experience tend to have higher accident rates, leading to increased premiums.
Poor driving records: Adding a driver with past violations, accidents, or claims will raise your overall risk profile.
Young drivers: Drivers under age 25 usually pay more for coverage due to their lack of experience behind the wheel.
Gender: Statistics show young male drivers tend to have more accidents than females, which may be reflected in higher premiums.
Extra risk exposure: More drivers means more time on the road, which increases the chances of an accident occurring.
The amount your premium goes up depends on the specific risk attributes of the driver you add. All insurance companies use advanced rating algorithms to set rates based on these risk factors.
Discounts Can Offset Rate Increases
The good news is that State Farm offers discounts to help offset the rate increase from adding a driver:
Good Student Discount: Up to 25% off for drivers under 25 who maintain at least a B average.
Steer Clear Discount: Up to 15% off for drivers under 25 with a clean driving record.
Defensive Driving Course Discount: 10% off for completing an approved defensive driving course.
Distant Student Discount: Savings for students who only drive the car when home from school.
Accident Free Discount: Savings for being claim-free for 3+ years.
Multiple Car Discount: Savings for insuring more than one car with State Farm.
Multiple Policy Discount: Savings for having home or life insurance with State Farm too.
Ask your State Farm agent for full details on discounts in your state. Taking advantage of them can help blunt the rate increase from adding another driver.
Weighing the Cost vs. Risk of Excluding Drivers
Because of the rate impact, some customers consider leaving certain drivers, like college students, off their policy. This is extremely risky, for a few reasons:
Insurance may not cover an accident if the driver isn’t listed. You could end up paying enormous uncovered losses.
Intentionally excluding a regular driver is illegal. If discovered, the insurer can cancel your policy.
If the driver has an accident in your car, you could be sued or held responsible for damages.
The small premium increase for listing an additional driver is inexpensive peace of mind compared to the severe financial consequences of an uninsured accident. Make sure to follow State Farm’s policy and disclose all regular drivers.
How Much Will Your Rates Increase?
Actual premium increases will vary situation-by-situation based on:
- Driver age and gender
- Driving record and experience
- Types of vehicles on policy
- Coverage options and deductibles
- Applicable discounts
- Any other special factors
As an example, here are some typical rate increases for adding specific driver types from industry studies:
- Teen driver: 50-100% increase
- Spouse: 5-15% increase
- Young adult child: 15-30% increase
- Elderly parent: 5-15% increase
The best way to find out how much your specific premium may rise is to contact your State Farm agent. They can analyze the risk attributes of the new driver and provide a personalized quote. This will reveal exactly how much rates could change with the addition of the new driver.
Some final tips for minimizing rate increases when adding a driver:
- Take advantage of all available discounts
- Consider raising your deductible level
- Opt for cheaper liability coverage limits if costs are a concern
- Remove unnecessary coverages like rental reimbursement
- Excluding comprehensive/collision coverage on older vehicles
Work With Your State Farm Agent
Adding a driver doesn’t necessarily have to mean a dramatic rate increase. Your State Farm agent has lots of experience finding policy solutions to keep rates affordable when you need to add a driver. They can review your specific situation and provide customized policy recommendations to limit premium increases. Be sure to disclose new drivers as soon as they start using your vehicles regularly so you remain fully protected. This small upfront investment in higher premiums can prevent enormous uncovered losses down the road.
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