When a teenager receives her driver's license, she often will be added to her parent's auto insurance policy. But if her parents are divorced, teen car insurance could become a bit confusing.
Insurance companies and states have different requirements regarding coverage of additional drivers on an insurance policy, but here are some tips to review if you have a teenage driver with divorced parents:
If your teen has access to driving vehicles at both parents' houses, then both parents might need to add him or her to their individual policies. Some companies may require that the parent with custody add the teenage driver to their policy. Divorced parents may want to contact their insurance companies to find out what is required in their situation.
Every state requires licensed drivers to have auto insurance coverage, which includes teen drivers, even those with a permit, when driving. If you have a teenager in your household who may be on your former spouse's insurance, it may be a good idea to find out if your insurance would cover your teen while driving your car.
Safe driving techniques can help all family members save money on car insurance. Teaming up with your former spouse to encourage, educate and even monitor your teen might help to make him or her a better driver. Car crashes are the No. 1 cause of death for teenagers, according to the Centers for Disease Control and Prevention.
No matter which parent carries their teenager's insurance, both can set rules for the use of the car. Here are some suggestions:
- Prohibit cell use and texting when in the car.
- Limit the number of passengers in the car when your teen is driving.
- Establish a boundary of where your daughter can take the car.
- Encourage your son to call you at any time for a ride if he feels he, or another driver, isn't fit to drive—no matter what the situation is.
- Require everyone—drivers and passengers—to wear seat belts.
Having a teenage driver in the family is always an exciting time for everyone. If you have a change in your family situation, contact your insurance agent to determine if any changes are needed for your policy.
Published: September 2013