Insurance for teen

by Darlene

My 17 yr. old has her license. We live in PA. She does not have her own car.She does not drive my vehicle.I was told that if she has a license, she needs to be on my policy.

I make her pay some of the car ins. but i don't think it is fair that she is paying because she don't drive.Does she need to have car ins. just because she has her license?

Answer:

I believe that is incorrect.

Just because someone has a license, it does not mean they have to be in a policy. If she had her own vehicle, then that would be a different case.

Every auto policy has something call the Omnibus clause. This clause authorize or gives coverage to all drivers (the ones that have permission to drive).

Notice that is a ALL. The driver is defined as an insured. Now, most insurance companies ca exclude drivers if they believe they can increase the amount of risk they are insuring (i.e. a 17 year old male). But it appears that your daughter is not excluded (read your policy endorsements to see if she is or not).

The next issue is simply your insurance application. Remember that insurance companies can decline coverage because you misrepresent the application.

If they asked you if your daughter had a license, then the answer would be no. But if they asked you if she would acquire a license, then the answer must be yes. If they did not ask you anything, then you are fine.

The best thing to do here is simply as your agent. Explain that she has a license, but does not drive, does not have car, and does not driver your vehicle. Usually an agent will tell you what you need to do in case you do need some coverage for her.

I hope this helps some.