Do Parents Have to Include Teenage Drivers on Their Insurance?
Teenagers are the riskiest drivers of any age group. Teenagers accounted for nearly 13 percent of all fatal crashes in 2006 according to the Insurance Information Institute. Insuring teenagers can be very expensive because of their lack of driving experience and high probability of being involved in an accident. Although they do not have to, most parents include teenage drivers on their insurance so the teen has coverage while driving their car.
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Description
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Parents do not have to include teenage drivers on their insurance unless the teen operates their vehicle on a regular basis. If the teen lives in the same household, they either have to be included on the insurance policy or excluded from the policy all together. If they are included, the insurance company will charge a premium for the driver based on factors such as age, gender and driving record. If the teen is excluded, he or she will not have any coverage at all while operating the parent's vehicle. Teenagers who are away at school or do not live in the parent's household typically do not have to be included on the parent's policy unless they regularly operate a vehicle listed on the policy.
Benefits
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Including a teenage driver on the parent's policy primarily benefits the teen. Teenagers are expensive drivers to insure. Insurance rates for a teenager with his own policy would probably be more than the young driver could afford. Also, insurance companies rarely allow teens to purchase a policy unless they are at least 18. Keeping the teen driver and his vehicle on the policy will save hundreds if not thousands in insurance premiums per year. Most insurance companies offer multi-car discounts that would otherwise be unavailable if the teen were on his own policy.
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Drawbacks
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The biggest drawback of including a teenage driver on the parent's policy is cost. The cost of the parent's policy will drastically increase once the teen driver is added. On the other hand, if the teenage driver is not included on the policy, parents have to worry about whether or not the teen has coverage if he is involved in an accident while driving their car. The teen cannot legally drive the parent's vehicle without being listed as an insured driver. If the teen drives the car and is in an accident without being listed on the policy, the insurance company is not obligated to pay for damages. Also, the parents can be held legally liable for any damages or injuries the teen causes to another party.
Tips
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The most responsible option is for parents to include their teenage driver on the insurance if the teen will ever drive their car. The Insurance Information Institute recommends parents pick a safe car and enroll their teen in a driver's education course and safe driver program to reduce insurance rates and to ensure their teen's safety while on the road.
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References
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