When Should My Child Be Addded to the Family Auto Policy?
From time to time we recieve the common question, "When should I to add my child on the family auto policy?" The answer: When they recieve a leaners permit. Yes. (I know, not what you wanted to hear) A Drivers or Learners "Permit" is permission to drive and therefore a temporary license with certain restrictions. If your child is driving your vehicle then the child must have the coverage required by your states law. A Drivers Permit comes with all the responsibilities of anyone who operates a motor vehicle on public roads, including financial responsibility. When you purchased your auto policy, part of the language of the insuring contract requires that you notify the insurer within 30 days of any change in risk factors associated with your policy. Failure to add a new driver to your policy, especially a minor child, can consititute material misrepresentation of the risk assumed by your insurer when they issued your policy and can result in a denial of any coverage in the event of a loss.
The only other work around to this is to have the child exlcuded altogether from the policy, however be very careful in going down this road (no pun intended) I f your child is excluded from driving one of your vehicles, it's pretty much a "done deal." By that, it means that anytime he/she drives one of your vehicles -- even if it's just to park the car -- they would be excluded. Your insurance company wouldn't pay for any damages caused if your child had an accident (though sometimes they will pay the damages to your own vehicle under your first-party coverage). If he/she has just gotten a learner's permit, and you plan on letting him drive (even with you in the car), the exclusion would still apply. You can argue with your carrier until you're blue in the face, but if the exclusion still exists, they won't cover damages he/she causes while driving.
Your best bet: Remove the exclusion and, as your carrier suggests, add your child on as an occasional driver. A lot of companies offer the "occasional driver" provision, so you're probably going to save money that way. However, once your child gets his/he actual license, and starts driving regularly, they need to be added on as a regular driver.
Hope that provides a detailed answer to your question. At RMS we have several teen operator programs which will assist you in providing the best coverage and premium. We offer a 30% good student discount (B average or better). Please call us at 410-526-6690 click here to request a proposal.
From time to time we recieve the common question, "When should I to add my child on the family auto policy?"