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MomWontGiveUp · Oct 2, 2011, 09:41 PM

This evening, I asked my daughter if she was going to have to pay for her own car insurance after she gets her license (she lives with her dad). She said she didn't know but said that her older brother is driving their dad's car without insurance. This isn't shocking news, but I am concerned about it (naturally).

My husband and I are going to look into adding the kids onto our policy but I don't think that will automatically cover them on their dad's car.

I'm not sure how all this works. Can someone please explain?

tickle · Oct 3, 2011, 04:48 AM

If you insure your child to drive your car, that is the only car they will be allowed to drive; if there are two cars on the same policy, your child is insured to drive either car. You will be looking at a hefty premium for a new driver on your policy.

Fr_Chuck · Oct 3, 2011, 05:14 AM

This will depend on the state ( if in the US) each state has different rules on car insurance. Often at least in GA and TN, if the underage driver is insured on one car in the family they are insured on all of them, since they are a listed driver with that company.

At least in the states I am a agent in, any licensed driver is covered under another policy unless specificly limited from it. Or unless the policy only insures those listed drivers.

For example, If I came for a visit and you let me use your car, I am covered under your policy to drive the car. I can let people I know, friends, co-workers all use my car and they are all covered.

The issue with a underage driver living in your household, that they have to be listed as a driver in your household with your insurance company.

MomWontGiveUp · Oct 3, 2011, 09:26 AM

Thanks to you both for very good answers. We are insured with Geico and the agent was very thorough this morning answering my questions.

I do not have legal custody of my daughter so am not obligated to cover her once she gets her license. She does not live with us at all; totally with her father. The good news is: We can insure her on one of our cars and she will be insured on her dad's car as well. However, if she gets pulled over or in a traffic incident and it's discovered that she was not declared as a driver in her father's household, he will likely lose his policy.

My goal is to assure my daughter's safety so we will naturally cover her insurance on our car.

Thanks again to you both!

twinkiedooter · Oct 21, 2011, 02:50 PM

It is my understanding that a child driving a parent's car with the parent's consent is then covered while driving that car. The child does not have to be a designated driver on the policy but just needs the expressed permission to drive the car.

Wondergirl · Oct 21, 2011, 02:55 PM

Originally Posted by twinkiedooter

It is my understanding that a child driving a parent's car with the parent's consent is then covered while driving that car. The child does not have to be a designated driver on the policy but just needs the expressed permission to drive the car.

So that means no teenager needs to have auto insurance because the parents' okay to drive is good enough and means the child is covered?

My company (State Farm) says the child has to be on one of the family's auto policies, but is covered if he has parental permission to drive any of the family cars.

ScottGem · Oct 21, 2011, 03:18 PM

Originally Posted by MomWontGiveUp

My goal is to assure my daughter's safety so we will naturally cover her insurance on our car.

To summarize, if your daughter gets into an accident driving a car that she is not a registered driver for, the car owner is likely to lose their insurance, but the claim will be paid.

But I'm wondering how you think insuring her will "assure" her safety?

Fr_Chuck · Oct 21, 2011, 06:18 PM

Originally Posted by twinkiedooter

It is my understanding that a child driving a parent's car with the parent's consent is then covered while driving that car. The child does not have to be a designated driver on the policy but just needs the expressed permission to drive the car.

That is a yes or no, it can depend on the policy and how it is written, some policies insure only listed drivers. But a policy holder has a obligation to inform the insurance company of any licensed driver living in the household.
That is how the rates are determined.

JudyKayTee · Oct 22, 2011, 10:02 AM

Originally Posted by ScottGem

To summarize, if your daughter gets into an accident driving a car that she is not a registered driver for, the car owner is likely to lose their insurance, but the claim will be paid.

But I'm wondering how you think insuring her will "assure" her safety?

Just worked on one of these this week. Policyholder did NOT list an under-25 driver, that driver was in an accident, insurance company DISALLOWED the claim, stating the policy was obtained fraudulently.

It worked out OK because the injured party had her OWN insurance which had higher limits than the under 25-driver's vehicle but it will be a very long time before the parents get out of a risk pool - IF they can find a company to insure them.

twinkiedooter · Oct 22, 2011, 10:10 AM

What I meant to say is that if the child is an occasional driver and has the permission of the parent to drive any of the family's cars they would be covered. This comes into play if the child does not live with that parent all the time but is just there visiting.This would be the same if a friend of theirs borrowed their car and did not live with the parents. They would be covered.

But if the child lived at the parents and were not listed as a driver, then no, they are not covered. Adding an under 25 aged driver is very expensive.

And as a driver of any age they need car insurance to satisfy the state requirement even if it's only to carry the state minimums.

JudyKayTee · Oct 22, 2011, 10:11 AM

Originally Posted by twinkiedooter

What I meant to say is that if the child is an occassional driver and has the permission of the parent to drive any of the family's cars they would be covered. This comes into play if the child does not live with that parent all the time but is just there visiting.This would be the same if a friend of theirs borrowed their car and did not live with the parents. They would be covered.

But if the child lived at the parents and were not listed as a driver, then no, they are not covered. Adding an under 25 aged driver is very expensive.

Must vary company to company, State to State. I very specifically have no insurance if someone under the age of 25 is driving my car.

Adults are no problem, whether they live with me or not.

tickle · Oct 22, 2011, 12:07 PM

Originally Posted by twinkiedooter

But if the child lived at the parents and were not listed as a driver, then no, they are not covered. Adding an under 25 aged driver is very expensive.

Hi twink, I agree, all occasional drivers (in the household) have to be listed on the policy if they are to be covered driving the family car. That is the way it works up here in Ontario.

Tick