Teen Drivers and Auto Insurance
Teen drivers are high risk
There’s just no way around it – student are risky drivers. The National Highway Safety Administration recently released the information shown below demonstrating just how dangerous young drivers are to themselves and to other people on the road. This information corroborates a wealth of data regarding the dangers of combining teens and cars.
In 2004, nearly 6,000 teenage drivers were killed in traffic accidents. Young people accounted for 28% of all drivers involved in motor vehicle fatalities even though they represent a relatively small number of overall drivers. Because student drivers pose a higher risk of accidents than virtually any other group of drivers, auto insurance rates for this age group are very high. On average, parents can expect to see anywhere from a 50-100% increase in their auto insurance rates once their teen is added to their auto insurance policy. If your young driver is a good student, there is some relief from the teen risk burden. Many insurance companies offer “Good Student Discounts” which are typically available to students who have a grade point average of 3.0 or above.
Teens in single parent homes
If your teen is away at school, living part-time with an ex-spouse, or spending a significant amount of time away from your single parent home, you may not be required to keep them on your auto insurance policy. Talk to your carrier to determine if your child is required to remain on your policy.
Divorced Parents
Following a divorce, deciding on which parent’s policy to a claim your teen driver on is often confusing. The best thing to do in this circumstance is to check the language on each of your car insurance policies or contact your auto insurance company for details. Some auto insurance companies suggest that the parent who has custody of the child while they are in school is responsible for having them on their auto insurance policy, while others say it is the parent who has custody of the teen more than the other.
In some cases, if both parents have the same auto insurance company, the teen will automatically be covered on both policies. The reason for this is that some companies define “an insured” as “a person related to you by blood, marriage or adoption who is a resident of your household.”
Talk to your carrier about your young driver and your particular situation. They will probably have policies in place to deal with your individual requirements.
Always make sure your teen driver is listed on your policy.
Not listing your student driver on your policy is not an option. If you choose to go this route you are putting much at risk. For instance, neglecting to list your teen driver during your application process or failing to add your child once they have received their driver’s license will almost always give your auto insurance company the right cancel your entire family’s auto insurance policy.
However, there are far greater consequences should your teen be involved in a traffic accident or if they are stopped for a traffic violation. Some states permit auto insurance companies to void policies for misrepresentation. That means that you may not be covered at all and any damages and liability could be your personal responsibility. So play it safe and contact your car insurance agent or company immediately once your teen has received his or her or driver’s license.
Learner’s Permits and teens.
Laws differ on when a teen driver needs to be listed on your policy. In some cases, you may not be required to list your student driver while they are driving your car, with you, under their learner’s permit. However, that may not be true and you should never assume that it is. Make sure you check your state’s laws and talk to your carrier about your teen when they are issued their learner’s permit.
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