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.
Getting car insurance for your teen can be complicated enough without bringing divorce into the mix. If you and your ex-spouse share custody of a child who is old enough to drive, you may be wondering whether you both need to insure them.
The answer depends on several factors including custody arrangements where the teen lives, and insurance company guidelines. In this article, we’ll break down what divorced parents need to know about insuring a teen driver.
Overview of Insuring Teen Drivers
In general, teen drivers are more expensive to insure because they are new drivers and statistically more likely to get into accidents. Insurance rates usually drop around age 25 when drivers have more experience.
To save money, parents often add teens to their own policy since it is cheaper than getting a standalone policy Premiums increase, but not nearly as much as if the teen has their own insurance
Once a teen starts the licensing process, a custodial parent should inform their insurance company. The teen needs to be added as a driver when the insurer requires it – either when they get a permit or license.
Rates are based on the teen’s driving record, their grades, available discounts, and more. Choosing a safe, reliable car for them can also minimize insurance costs.
Must Both Divorced Parents Insure the Teen?
Whether both divorced parents need to insure a teen driver depends on the custody arrangement
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If the teen lives primarily with one parent, that parent should insure them. The other parent can check with their insurer about occasional driver coverage.
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If custody is 50/50, insurance agents often recommend the parent who has custody when the teen is in school insures them.
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If custody rotates week-to-week, the parent currently with custody that week should insure them.
The key is making sure the teen has active coverage at all times. Gaps in insurance are illegal and dangerous. When in doubt, check with both insurance companies on their specific company guidelines.
What If Both Parents Have the Same Insurer?
If both divorced parents happen to have policies with the same insurance provider, the teen may be covered under both policies even if only listed as a driver on one.
Many policies define “insured” as relatives living with you, regardless of whether they are a named driver. So the teen would have coverage in both households with the same insurer.
However, policies vary, so divorced parents should still read through their contracts and verify specifics with their insurance company. Never assume coverage.
Teen Drives Cars from Both Households
Things get more complicated if the teen drives vehicles from both households. For example, say one parent gives the teen a car, but they also occasionally drive the other parent’s car.
In this case, both parents’ insurance companies need to be made aware of the situation. The teen’s primary insurer covers them when driving any car with permission. But they also need coverage specifically under the other parent’s policy when driving that car.
The best practice is being upfront with insurers so they can provide guidance. Proper communication ensures seamless coverage as the teen drives various family vehicles.
Tips for Informing Insurers
When adding a teen driver to your policy or informing insurers of custody arrangements, be sure to:
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Provide both parents’ information like name, date of birth, driver’s license number, and VIN of cars the teen may drive.
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Give accurate garaging address and details on where the teen lives each week.
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Disclose who has primary custody or if it is 50/50.
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Request written confirmation from insurers on coverage when teen is driving each parent’s car.
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Update insurers anytime custody schedule or other details change.
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Check in annually and when teen gets their own car to modify coverage.
Shopping Insurance for Teen Drivers
When shopping for the best car insurance rates for a teen, consider the following:
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Multi-policy discounts: Insure both parents’ policies and the teen with one insurer.
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Good student discount: Maintaining a B average can earn up to 25% off.
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Driver training discounts: Have teen complete an approved driving course.
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Low mileage: See if low annual mileage earns a discount.
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Safety features: Vehicles with airbags, anti-lock brakes and other features can save.
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Compare quotes: Rates vary widely between insurers for teen drivers.
Taking the time to inform insurers and shop coverage for a licensed teen pays off by keeping them protected on the road. With open communication, divorced parents can coordinate effortlessly to keep their driving teen fully insured.
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.
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.
Auto Insurance for Minor Children When Their Parents Are Divorced
FAQ
How does car insurance work if your parents are divorced?
Does being divorced affect your car insurance?
Do my parents have to put me on their car insurance?
Can I keep my ex wife on my car insurance?
Should a divorced parent add a teen driver to insurance?
If teenagers regularly split time between divorced parents, insurance providers recommend that the custodial parent add the teen driver to their policy. In some cases, insurance companies say it is whichever parent has custody of the teen when the child attends school.
Should I separate car insurance if I have children?
If you have children with your former spouse, there are other factors to consider when separating car insurance policies. In most situations, all household members with a driver’s license must be listed as drivers on the insurance policy, which means if you have a child of driving age, they will need to be listed on both parents’ policies.
Who pays for car insurance for a child?
Usually, but not always, this is the parent receiving the child support. Some companies even require parents sharing joint custody to cover the child on both policies. The parent required to list the child on their insurance may not always be the same parent in charge of paying for the car insurance.
Does insurance cover divorced parents?
It is a simple question to both insurance companies covering divorced parents, so ask the insurance carriers about their specific guidelines. If the same company insures both parents, the teen would be covered by both parents’ policies, regardless of whether the teen is listed as a driver on either policy.