Teenager Auto Insurance Policy – Who Is Covered?
Reader’s Question:
Why do I still have to add my teenage child that is living with me to my auto insurance if the car is covered no matter who use it?
Helen
Kansas City, KS
Most insurance providers require all licensed household members be listed on your car insurance policy. Since this individual has access to the cars of the house they are a risk factor that insurance providers are allowed to include in their rating calculations.
Not all insurance policies provide coverage to anyone that operates the vehicle. Policies can have motorist exclusions. These exclusions can apply to those under a certain age (teens or under 21 or 25 for instance), those driving under the influence and unlicensed drivers to name a few.
Insurance providers therefore require you list your teen since he or she resides in your household and is a risk factor to them. Most state laws allow an insurance companies to consider all resident operators of an insured car in rating of an car insurance policy. This includes your teenage child, even if he or she has only a learner’s permit and especially when they have a full driver’s license.
Teen Driver Non Owner Auto Insurance Policy?
Reader’s Question:
Should I get my daughter a non owners policy since she does not own a vehicle? She just got her driver’s license.
Linda
Good Question, Linda.
Generally, it is actually much cheaper if you add her to your insurance policy rather than getting a separate insurance for her. You may be able to get a discount from your insurance company for multi-policy if she will be driving her own car.
As soon as your teenager begins to operate a vehicle, you will need to notify your insurance company that you will add her as an additional driver in the household. Since teenagers are inexperienced in driving, you will notice a higher premium on your insurance, since according to statistics, they tend to get involve in an accident.
You may expect your insurance rate to go up as much as 50% if you add a teenager in you policy. A son however will increase a premiums for as much as 100%. You may consider increasing your liability limits for additional protection.
Please note that some non owners policies do not cover vehicles that are owned by a member of the same household.
Goodluck!
MariCAR
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