If your insurance policy says anyone who drives your car including family is covered why do you have to pay more for your teen to drive?

The terms of your auto insurance contract or policy between you and your insurer specifically require that you disclose and schedule all household drivers and all regular drivers of your vehicle on your policy. You are also required to notify your Insurer of any change in household drivers during the policy term such as when a teen begins to drive. This allows the insurance company to properly access the risk and assign the appropriate premium required to cover those risk.

Your policy states that all the those others are covered as an added protection for the policy holder. It is not unusual for circumstances to arise when you may give permission for a non scheduled driver to operate your vehicle whether they are a visiting non resident family member or other friends.

As an example, Your Uncle Joe comes to visit and you loan him your car for the day to go to the local ballpark. With Permissive use Uncle Joe is covered under your policy. Now if Uncle Joe decides to stay for good and takes up residence with you then things change. As a household member with access to your vehicle you are required to schedule him as a covered driver or exclude him from the policy.

When a vehicle owner loans his vehicle to another party he is accepting any liabilities jointly and severally that the permitted driver incurs.

So the language is not designed to allow the concealment of high risk teen drivers. Such concealment or non-disclosure of a known driver is considered a well known form of Insurance Fraud and can Void all policy coverages. The insurer through this language is trying to give you the broadest coverage possible. All they are asking is that you be honest about who's driving and cover them accordingly.

Because teens are more likely to have accidents. Since they increase the risk, insurance carriers increase their premium.

That's not true for all teens, of course, but the statistics about the driving habits of teens don't lie.

Want to reduce a teen driver's rates on your policy? Send him or her through driving school. Better yet, exclude him or her from your policy, and make the teen buy his or her own insurance. Bet your teen driver will be more careful, then (and with the job your teen gets to pay for insurance, you'll have the house to yourself more often).