Is my child covered under my car insurance?

If you don’t add your child to your auto insurance once they’ve gotten a learner’s permit or driver’s license, you could face problems filing a claim, keeping discounts, or maintaining your auto insurance policy altogether if something happens while they’re driving your car. Your car insurance company could even demand a lump sum of back payments for the premiums that should have been paid since your child has been able to drive. Not listing such a driver on your policy could be considered material misrepresentation.… read full answer

On the other hand, babies, toddlers and young children are automatically covered on car insurance policies while they live with their parents, so nothing will happen to you if you don’t add your young children to your auto insurance.

Similarly, if your child is “financially independent,” according to your insurance company’s definition, or doesn’t live with you anymore, you don’t need to add them to your policy, and nothing happens if you don’t. Your child will be covered automatically if they only drive your car from time to time, under what’s called “permissive use.” This covers adult children and other family members who don’t live with you, as well as friends, neighbors, caretakers and others who may drive your car occasionally.

Kids should get their own car insurance when they purchase and title their own car and no longer live at home. Although some insurance companies will let you add a vehicle not registered in your name to your policy, most will only allow cars titled in the name of the primary policyholder to be added.… read full answer

If your child lives with you, it’s assumed they have regular access to your vehicle, and most insurers will require them to be listed on your policy. As soon as your teen driver is licensed, you’ll need to add them to your policy or prove to your insurer that they are either insured or permanently residing elsewhere. If you title a car in your child’s name, your child will have to get their own policy. But you can still list them as a driver on your policy if they are living at home and will have access to your covered vehicles.

There is no set age at which you have to remove your child from your car insurance policy. They can remain on your policy indefinitely, as long as they live at your address and the title remains in your name. It is possible to exclude your child from your insurance policy, but that means your child has zero coverage if they get into an accident driving one of your cars. If your child has had multiple tickets, a license suspension or a DUI, your insurer may require you to exclude your child from your policy.

Having a young driver on your policy has drawbacks for you as the primary policyholder. The biggest disadvantage is that your child’s driving habits become part of your insurance history, since your policy will pay for their claims. If your child gets into an accident, you will see premiums go up for everyone listed on the policy.

On the bright side, it is more cost-effective to add your child to your policy. Teenagers will get a more affordable rate if they are listed as a driver on a parent’s policy than they would on their own policy. Plus, you’re eligible for discounts your child might not be, like bundling with homeowner’s coverage. Although car insurance for teens is always expensive, you may be eligible for additional discounts if your child has good grades, attends driver education courses, or takes a defensive driving class.

It costs an average of $1,461 per year to add a teenager to your car insurance policy - an increase of 173% compared to the average driver's premium. The exact amount your insurance will go up depends on many factors, including where you live, your driving history, and your credit score.… read full answer

The most affordable way to cover a teen is to add them to your policy sharing the family car. Adding both a teen driver and a new vehicle to your policy would be more expensive than just adding your child as a listed driver on cars you’re already paying to cover. Adding a new car creates the need for more coverage, which costs more. It’s also way more expensive to get your teenager an individual policy, separate from your own, because sharing a policy with a more experienced driver brings rates down.

Below you can see how adding a 16-year-old driver to an existing policy compares to paying for a separate policy. Quotes assume Geico coverage and a 2014 Hyundai Sonata that is shared between the primary policyholder and the teen driver.

Cost of Adding a Teenager to Car Insurance

Note: Sample quotes are based on a 16-year-old driver.

Having a young driver on the policy can have drawbacks for the primary policyholder. Because your policy will pay for their claims, your teen’s driving habits become part of your insurance history. If your child gets into an accident, you will see premiums go up for everyone listed on the policy. Teens are risky drivers and four times more likely to crash, so your rates could definitely be affected. Premiums increase for about three to five years after a claim.

On the bright side, you’ll be eligible for discounts your teen might not be, like bundling with homeowner’s coverage. Plus, you may be eligible for additional discounts if your child has good grades, attends driver education courses, or takes a defensive driving class.

Most car insurance companies will require teenagers who live with parents to be listed on the parents’ policy. If you’re a parent of a teen with a learner’s permit, your teen should be typically covered by your policy with no action necessary on your part. But as soon as a teen driver is licensed, you’ll need to add them to your policy or prove that they are either insured or permanently residing elsewhere.