Are you a divorced parent trying to figure out how to get your teen car insurance? We’ll help you understand the basics and make sure your kid has the coverage they need.
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Listen, we know that if you’re reading this blog post, you have a million other things that need your attention. Even though every divorce is different, we can all probably agree that insurance is the last thing you want to think about at this very stressful and emotionally draining time. Â.
Unfortunately, itâs something that deserves your attention â especially if you have children that need car coverage. Different states have different laws regarding custody agreements, financial arrangements, and living environments. All of these things may affect who pays for your kids’ car insurance. Â.
Having 50/50 custody of a child can complicate car insurance. With the child splitting time between both parents’ homes, it raises questions about whose policy they should be on and how to get the best rates.
I’ll explain how 50/50 custody impacts car insurance and provide tips to save money
What is 50/50 Custody?
50/50 custody means each parent has equal parenting time with the child. The schedule varies, but the child typically spends alternating weeks, 2-2-3 days, or half the week with each parent.
Some key points about 50/50 custody:
- Child has two primary residences
- Major decisions are made jointly
- Neither parent pays child support
- Custody time is split as close to 50% as possible
With this arrangement, both parents retain custody rights and responsibilities.
Does 50/50 Custody Affect Car Insurance Rates?
The short answer is no – having 50/50 custody does not directly impact car insurance rates.
Insurance companies calculate rates based on factors like:
- Driver’s age
- Driving record
- Type of vehicle
- Credit score
- Location
Your personal situation like custody agreements doesn’t factor in. Rates are the same whether you have full custody or split it 50/50.
However, 50/50 custody can indirectly affect insurance costs depending on how you set up coverage.
Insurance Options for 50/50 Custody
You have a few options for insuring a child under 50/50 custody:
1. Child on One Parent’s Policy
Add the child as a rated driver to one parent’s policy.
The insurance company doesn’t need to know about the custody arrangement. Simply list the child as a resident relative on the policy.
This option is easier for record-keeping and managing one policy. But the parent will pay higher premiums having the child rated on their policy.
2. Child on Both Parents’ Policies
Add the child to both parents’ policies as a rated driver.
When a child is insured on two policies, insurance companies require a signed custody agreement. This confirms the 50/50 split.
The benefit is each parent pays a lower premium with the child only rated 50% on their policy. This saves money compared to option 1.
The drawback is coordinating coverage on two policies can be difficult. The child’s driving record needs to be exchanged at renewal and coverages should align.
3. Child has Their Own Policy
Rather than adding the teen to a parent’s policy, the parents could pay for the child’s own policy.
The benefit here is the parents’ rates are unaffected. But a stand-alone teen policy is very expensive. Rates easily start at $200 per month and go up from there.
Unless parents are mandated by a divorce decree to get the child their own policy, this option costs too much.
How to Get the Best Rates
Here are some tips to get cheap rates for a teen under 50/50 custody:
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Compare quotes from different insurers – Rates can vary hundreds between insurance companies. Shop around for the best price.
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Pick the policy with the highest discounts – Ask about discounts like good student, driver training, low mileage, and more. These savings add up.
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Opt for minimum required coverage – Don’t pay for extra coverage the teen doesn’t need. Stick to minimum liability limits to save.
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Have the teen complete driver’s ed – Many insurers provide a discount for completed driver education courses.
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Sign up for usage-based program – Insurers offer apps to monitor driving habits and offer discounted rates for safe driving habits. This can save parents 10-40%.
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Ask about multi-policy discounts – Insure the teen’s vehicle on the same policy as the parents’ cars to save.
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Buy older/used vehicle for teen – Drop collision and comprehensive coverage to reduce premiums. Carry only liability coverage on an older car.
Other 50/50 Custody Car Insurance Tips
Beyond getting cheap rates, here are some other tips for managing 50/50 custody car insurance:
- Inform insurance company of custody arrangement upfront
- Discuss insurance plan for teen in divorce agreement
- Coordinate coverages between households
- Exchange renewal paperwork yearly
- Notify insurers if custody schedule changes
- Have clear parameters on who pays the bill
- Pick one parent’s policy for primary coverage
- Use insurance ID cards from primary policy only
Work Together to Save
50/50 custody requires coordination between parents to provide stable insurance coverage for the child. But with some planning, you can save money and prevent headaches.
Shop smart, leverage discounts, and communicate with your ex to find the optimal 50/50 custody car insurance solution. Working together, you can keep costs affordable and give your teen protected driving independence.
Factors to Consider When Providing Car Insurance for Your Child
You and your ex-spouse will need to decide who will be the main policyholder for the child if you share custody. It’s not easy to have this kind of conversation, but you and your ex will need to look at your separate finances and living situations, as well as the specifics of your divorce agreement, in order to make that choice. Here are some factors to consider.
Unsurprisingly, legality is a common thread in these situations. Custody agreements can be very loose or very strict, but no matter what you and your ex decide, it will affect more than just the time your child spends with you. Â.
It stands to reason that the parent who has primary custody should also be the main policyholder for the insurance. However, this isnât necessarily a hard and fast rule. Factors like where the child attends school and who the custodial parent is matter. Â.
On the other hand, you can share a joint policy if you have a fifty-fifty custodial agreement. That being said, how you both choose to divy up payments may require another awkward conversation. Â.
The most important thing is to achieve clarity vis-a-vis your specific legal situation. If you and your former spouse have not resolved questions around child custody or child support, this will affect decisions around insurance.
The first thing that needs to be done when parents share custody is to decide who will be the main policyholder for the teen driver. Several factors may help to determine your choice including:
- Which parentâs insurance offers the best coverageÂ
- Who the child spends more time with
- Where the childâs school is located
- Who paid for the childâs carÂ
By answering these and other questions, you can get a better idea of what’s going on and come up with a good solution.
In an ideal world, the parent with the best insurance coverage would be the primary policyholder. However, this isn’t always possible, especially if you share custody. Joint policies are like joint custody in that they allow both parents to have the same auto insurance policy that covers their child, so both parents are equally responsible. With separate insurance plans, each parent has an individual policy that covers the teenage driver. Â Â.
Your child may need to be covered by both parents if they live with both of you and the child spends equal amounts of time with each parent. After that, it will be up to you parents to choose whether to get a joint policy or add the child to your own policies. There are times when a joint policy is cheaper, so you should talk to your provider about all of your options.
And this brings us to our next thorny topic: money. Money is always messy, and money after a divorce particularly so. Each parent will be responsible for their own premiums whether you choose a primary policyholder or use separate policies. You can make payment plans with your auto insurance company directly, so you won’t have to worry about dividing anything. Â.
If youâve opted for a joint policy, youâll need to determine how you split payments â especially since car insurance costs can add up. Consider the following when making your decision:
- How your child drives: Let’s say one parent takes the kid to school and the other lends them a car. It makes sense that the parent who lets the child drive should have to pay more for the insurance.
- Your child’s car: Let’s say a parent bought their kid a nice new car with higher insurance rates. That parent might make sense to pay the premium. Â .
- 50/50 rule: If your divorce agreement says that each parent will pay half of the child support, it might be best to stick to that rule. Â .
If you are getting a divorce, you might want to write down your final decision on how to split the money. Â.
As you look into who is covering what, you should also think about any available savings opportunities. Any little bit helps! Here are a few options that may be available to you:Â Â.
- More Than One Policy: If you have more than one policy with some insurers, you can get a discount. If one parent has more than one policy with a certain company, you might want to get your child’s car insurance through that company. Â .
- Multiple Vehicles: Sometimes it’s cheaper to add a car to an existing policy than to get a whole new policy. Â .
- An extra driver may be cheaper if you keep everyone on the same policy. This is because deals on extra drivers may be available. Â .
To choose the safest and least expensive option, you need to know about your current car insurance, your ex’s policy, and the other choices you have. Car insurance providers typically charge more for young drivers, so be extra vigilant when comparing rates and policies. Â.
Understanding Car Insurance for Children of Divorced Parents
Remember that your child needs insurance even if they don’t have their own car. Your child needs insurance every time they get behind the wheel of any car, to protect themselves and other people. Â.
Does a Father Pay Child Support With 50/50 Custody?
FAQ
What does 50/50 mean in car insurance?
What are the disadvantages of 50 50 custody?
How does car insurance work if your parents are divorced?
Do I have to live with my dad to be on his car insurance?
What is 50/50 custody?
October 16, 2023 // by Brittany Truszkowski At Gale, Angelo, Johnson & Patrick P.C., we understand that family dynamics vary, and when it comes to child custody arrangements, one size does not fit all. 50/50 custody, also known as joint physical custody, is a parenting plan that grants each parent equal time with their children.
Who is responsible if a custody split is 50-50?
Even if the custody split isn’t 50-50, you will likely both be responsible for making sure that your child has insurance. Whose policy should they be on? If one parent has primary custody of a child and they’ll be driving one or more of their cars, that parent will need to add the child to their insurance policy.
How do I create a 50/50 custody plan?
Here are some additional tips for creating your optimal 50/50 custody plan: Consider your child’s age and maturity level. Frequent exchanges may work better for younger children. Analyze your coparenting dynamic. Amicable coparent’s can better coordinate more complex schedules. Assess your schedule flexibility.
What are the benefits of a 50/50 custody arrangement?
When appropriately implemented, 50/50 custody arrangements can provide immense benefits over other unequal timeshare options: Equal parent-child time allows strong bonds with both parents.