Is My Child Covered On My Car Insurance Coverage?

Children get older, and eventually, they will want to drive. Many parents have different strategies when it comes to allowing their children to drive, including figuring out when they will be able to take a driver’s education course.

Of course, there are a number of expenses that come into play when a teen begins to drive. New and used vehicles cost money, there are gas expenses to consider, and of course, insurance is a cost that has to be thought about. Young drivers often pay more for automobile insurance, as they have less experience and are more likely to get into an accident than people who have been driving for a while.

When Is A Driver That’s Not Listed On Your Policy Covered Under Your Insurance?

Before you loan your car out to other people, it is essential to know who is insured to drive your vehicle. Knowing who to list on your car insurance policy, and who does not need to be listed, can be vital. Insurance coverage is essential, and it is important to note that your insurance agent is a fantastic resource. Go ahead and ask questions, it is what they are here for.

First, each insurance provider has different policies when it comes to who needs to be listed on the plan. Because of these inconsistencies, it can be quite confusing.

In many cases, if someone that is living in your household is driving your vehicle while they get into an accident, they need to be listed in order for the insurance to cover the accident. It is risky to let people in your household drive your vehicle without being listed on your auto insurance plan. Some insurance companies will allow people to be added immediately after an accident occurs, so if you find yourself in this situation, it doesn't hurt to ask. Some people may even go about asking before allowing another person to drive the vehicle.

Automobile insurance providers expect that family members that are in your household who are licensed will be listed as drivers on your policy. They also expect other licensed drivers who are living in the household to be listed.

Additionally, people who drive your vehicle and are not insured by any other policy will also require insurance coverage.

Importantly, a teen that has a driver's permit might be covered under your current policy. That said, they might not as well. Your insurance agent has the specific answer to this question as it relates to your insurance plan. When people sign for their automobile insurance policy, they may need to sign documentation stating that certain drivers are excluded from coverage on the plan. As a driver, you should know which drivers are excluded from your policy in this manner.

Benefits Of Adding Children To Car Insurance

The most obvious benefit of adding a child to your automobile insurance coverage is that it saves a lot of money right off the bat. Some insurance providers ask for up to $250 or more per month to insure younger drivers when they are on their own policy. This is because younger drivers pose a lot more risk and are more likely to get into an automobile accident. For many insurers, if the child owns their own vehicle, they must have their own insurance policy. Even if they still live at home. For this reason, some parents decided to purchase another car for the household under their name. They own the vehicle, and it costs a lot less to insure.

Another benefit to adding children to your car insurance policy is that you know for sure they have insurance at any given point in time. Some people choose to purchase insurance, pay for a couple of months of it, and then let it lapse. This can pose a substantial risk to their finances and their life. Automobile insurance is immensely important. If you do not trust your child to keep up with car insurance payments, either because they may not be able to afford it or because they are not used to paying bills consistently, adding them to your car insurance may be the best plan.

Drawbacks Of Adding Children To Car Insurance

Adding a child to your current insurance does come with some risks. If your child gets into an automobile accident, and someone decides to sue, it is possible for you to get sued for their accident. The owner of a vehicle can be sued if the condition of the car does not meet the requirements for being driven legally.

Additionally, tracking down another person to get the money that they owe you for providing car insurance can be a hassle. By having the other person on their own policy, all of the financial aspects of the insurance policy will be their responsibility.

While more expensive, it is possible for a younger driver to raise their deductibles on their insurance policy in order to lower the overall cost of the plan. 

When Do I Add My Teen Driver To My Policy?

If you decide to add a child to your car insurance plan, you will want to have them insured as soon it is legally required for you to do so. This is necessary if your teen is driving one of your cars, regardless of whether they themselves own one, if they are living at your address. Children can be added to your insurance so long as they are living in your household. Once they move to another house and take a car with them, they will need their own automobile insurance coverage.

It is easy to get sticker shock, and many people do think about trying to hide their teen from the car insurance company. This is a bad idea, as it can lead to a lot of financial responsibility heading your way if the teen gets into an automobile accident and is not covered. Adding a teen to your insurance policy can increase the cost of your insurance premiums by up to $700 or more per year, but the expenses involved in an accident occurs or they are caught driving without insurance can be much higher. It is also much less expensive to add a teenager to your policy than it is for them to get their own policy.

Saving Money On Insurance For Your Teen

Outside of adding a child to your insurance policy in order to save money on the total costs paid, there are discounts for students that can help save money. Some automobile insurance providers offer discounts for students who do well in school and get good grades. In addition, people who take driver education classes can receive additional discounts. It is good to keep in mind that multiple classes are available, including advanced courses for people who have passed basic driver education already.

One of the most impactful ways to help save money, in the long run, is to make sure that your child is ready for driving in the situations they may come across. Driving with them at night, for example, helps them get experience driving in the dark and can help them be less likely to get into an accident. Some parents also choose to limit the number of other teenagers that are in the car when they drive. There is a correlation between the number of teens in a vehicle and the likelihood of an accident. Even just letting your child know this information can be helpful.

FAQs

Is My Child Covered Automatically When They Have Their Permit?

Auto insurance plans provide insurance coverage for the vehicles that are listed on a policy when operated by a covered driver. When certain unlisted drivers are given permission to drive; car insurance companies can extend coverage to them as well. Auto insurance companies ask you to name all of the drivers in your household if they are over the age of 13. Most companies do not add any charges for drivers at your home with a permit, though some do. Verify this information with the car insurance companies you are considering.

Keep in mind that as soon as your child has a driver’s license of their own, rather than the permit, they will need to be listed on a car insurance plan. Some parents choose to add their children to their own car insurance policy to help lower overall costs.

Do Licensed Children Count As Permissive Users?

For people who are given permission to drive a vehicle; they might be covered by your auto insurance plan. Specific provisions where permissions do not apply include drivers that live in the household, drivers who are away at school and under the age of 25, drivers who do not have a license, and drivers who are already excluded from an insurance plan. Contact your car insurance provider to see how to add licensed children to your policy and how much it will cost.

If A Child Lives With Parents And Has A Clean Driving Record

It may be possible to add your child to your policy and save money overall. These savings increases when the children have a clean driving record.

If A Child Has A Good Record But Doesn't Live With Parents

Children who do not live with their parents are not able to be added to a parent's car insurance plan. If the child lives in their parents’ home, they need to be listed under their parent's policy. All household members who regularly or occasionally drive a vehicle must be listed on a car insurance plan.

If A Child Lives With Parents But Has A Bad Driving Record

If a child has a bad driving record and lives with their parents, it can make sense to add the child to a parent's car insurance policy to save more money overall. In addition, make sure to take advantage of car insurance discounts that are available to you, including discounts for good grades when applicable.

If A Child Has A Bad Record And Doesn't Live With Parents

If your child has a bad driving record and does not live with you, they will need to purchase their own car insurance plan. The best way to save money on car insurance is to shop around to multiple companies, as each car insurance provider weighs variables differently when determining rates. The tools at American Insurance are ideal for finding the best auto insurance plans and rates available.

Final Notes

American Insurance is a company that is dedicated to providing quality insurance and helping people save money on it. This includes people of all ages and people who are looking to add their children to their policy. Speak with an agent today and get any questions you have answered. The safety of your young adult is immensely important, so do not delay in getting an insurance policy.