Is My Child Covered Under My Car Insurance?
As a passenger, yes your children are covered under your insurance.
Most insurance policies will cover your passengers, as well as licensed drivers who live in your household that borrow your car (or drives it in general) and isn’t covered under their own policy. This will apply to all drivers that live with you, whether they are family or unrelated.
Would I need to list my child on the insurance?
If your child is of the legal driving age in your state and licensed, it’s best to list them as a driver on your insurance. While technically your insurance policy should cover anyone you give consent to driving your car, the insurance company will expect you to list approved drivers, especially individuals who drive the car on a regular basis.
If your child just has a learner’s permit, you should check your insurance policy. They may require you to list drivers with learner’s permits. Other insurance companies may only require you to list licensed drivers. Always double-check as soon as you have a new permit holder in your household to ensure they are covered while driving.
If my child is no longer a minor, does my car insurance still cover them?
If your child still lives with you, then yes, you would be allowed to keep your child on your car insurance policy. However, if your child has moved out, then you usually cannot put them on your policy, even if you add their name to your car title as a co-owner.
To be listed on your policy, car insurance providers require that the insured lives at your residence and parks the car at your address.
Adding your child to the car’s title may still be helpful for them to obtain their own auto insurance policy, as it will easily demonstrate that they have insurable interest in your vehicle and should therefore be covered while driving it.
Am I covered if my child wrecks my car?
With or without a driver’s license, you may be held responsible after giving your child explicit or implied permission to drive your vehicle. Many states in the US have laws that hold parents and guardians responsible for their teen drivers, such as California.
This legal principle is vicarious liability, also known as imputed liability, which is when a person or entity is held responsible for damages or harm caused by someone else.
Can my child be sued for a car accident?
Depending on state law, yes. For example, under California law, all motorists are held to the same standard, meaning that each licensed driver is expected to uphold a duty of reasonable care to any passengers, other drivers, and pedestrians they are sharing the road with. As such, your child cannot cite being inexperienced or being of a teen age as an excuse for negligent or reckless driving.
If a teenage driver fails to uphold their duty of care by driving recklessly or negligently, they are liable to being sued for any injuries or property damages their driving caused.
Will I have to pay if my child is sued?
Depending on your state’s laws, yes. You may be held liable through the principle of vicarious liability if your child is sued for causing property damage or personal injury while driving.
While your child is the one being held accountable, the damages of the accident will usually need to be paid by you as their parent or legal guardian. In addition, you should check your policy to make sure your coverage extends properly to your child in the event of an accident that occurred while they were driving a vehicle, as your coverage will depend on your specific plan.
Can I block or exclude drivers?
Typically, yes you can exclude specific drivers from being covered under your insurance policy. This is a process you will need to contact your insurance company to learn about, but you would usually sign a document stating that you are excluding the driver from coverage. Be sure to keep track of drivers that you’ve opted to exclude.
I thought my child’s insurance only lasts until they are age 26.
This is only true for health insurance, not car insurance, as outlined under the Affordable Care Act, which requires health care plans to cover enrollee’s children until age 26, though some employers may opt to continue coverage beyond the child’s 26th birthday as well.
Typically though, the child is no longer eligible for coverage under their parents’ health benefits enrollment, unless they are incapable of self-support due to a mental or physical disability that existed prior to age 26.
Why was my child’s car insurance denied?
For car insurance, most people are eligible and have their applications accepted. Still, it’s important to know that car insurance companies can deny an applicant coverage for any reason except reasons that are explicitly forbidden by law. These exact laws will vary from state to state.
Car insurance companies are more likely to deny insurance to people who they believe would more probably file a claim.
Insurance companies often deny coverage if the applicant has a recent history of accidents, a series of minor traffic tickets, or serious infractions like DUIs, which are strong indicators that the applicant is a risky driver who might cause an accident and submit a claim.
Additionally, more subtle factors like being too old or young (unless your state prohibits age-based insurance decisions) or driving a fast and/or expensive car can influence insurance companies’ decisions as well. A teenager that is already seen as a high-risk driver may be denied insurance for having one single speeding ticket, while a 30-year old adult might not be denied that same insurance.
Typically, laws focus on higher rates rather than full denial of coverage, but it may be worth checking that your policy wasn’t denied for an illegal or discriminatory reason. Car insurance companies also don’t always tell you why your application was denied, especially if you submitted an online application. So you may need to contact the insurance company directly or consult with an insurance agent to find out what happened.
