Ask an Expert: Is My Child Covered Under My Car Insurance?

When your child starts driving, you've already got enough on your mind, and don't need the added stress or worry over whether your car insurance would cover them in case of an accident or other mishap. That's why finding out exactly when and how your child is covered under your auto insurance policy before your child ever starts using your vehicle is ideal. The good news for parents is that your car insurance does cover your child who drives your vehicle, as long as you're aware of what's needed from you.

An independent insurance agent can not only help you get set up with the right kind of car insurance for your family but also help you update your carrier on which members of the family need to be covered under the policy. For now, let's take a closer look at when and how your car insurance covers your child. 

In This Article:

Is My Child Covered under My Car Insurance Policy?
When and How Does My Car Insurance Cover My Child?
How Much Does My Car Insurance Cover My Child?
How Much Will I Pay If the Car Insurance Policy Doesn't Cover My Child?
Can I Exclude My Child from My Car Insurance?
Should I Let An Uninsured Driver Use My Vehicle?
Check Your Declarations Page
Does My Insurance Policy Follow the Driver or the Vehicle?
How Can I Save Money on Car Insurance?

Is My Child Covered Under My Car Insurance Policy?

Yes. The personal auto policy is designed to protect parents and family members who use the car. Family members are also protected when riding in the auto with the policyholder. But the key is ensuring each family member who uses your vehicle is listed on your policy. 

Do I Need to List My Child on My Policy?

Yes, you'll need to contact your car insurance carrier to ensure your child is listed on your car insurance policy. When they're licensed, they'll definitely need to be listed as an insured driver, but this might even be required by some carriers when your child has their learner's permit. 

If you have a child who's beginning to drive and currently just has a learner's permit, talk to your insurance company and find out if they need to be listed already to be covered while they use your vehicle. Your independent insurance agent can also help you with this.

When and How Does My Car Insurance Cover My Child?

Personal auto insurance policies provide two main types of coverage, including liability and medical payments. Here's a closer look at each one.

• Liability coverage: Covers damage done to third parties by your vehicle for property and bodily injury. Property damage coverage pays for the costs of damage done to vehicles or other property struck by your car. Bodily injury coverage pays medical fees for others injured in a wreck. If your child is old enough to drive your car and crashes it, this coverage will apply to them, too.
• Medical payments: This coverage aspect is designed to protect you and the other occupants of your car. If the driver injures themself or family members riding with them during an accident, medical payments coverage can take care of the fees. So, if your child is riding with you at the time of an accident and gets injured, medical payments will cover them.

Note that depending on which state you live in, if you cause an accident and your child is riding with you and gets injured, they can sue you. This isn’t extremely common, but it does happen.

But what happens if your teenager feels rebellious and decides to “borrow” your car for a joyride and ends up wrecking it or damaging property? Well, your personal auto policy would still cover them through vicarious liability. 

The vehicle belongs to you, and who you let drive it is your responsibility. This is still true even if your child takes the car out behind your back. Any injured or upset third parties would be suing the owner of the car or the parent in the event of an incident anyway.

How Much Does My Car Insurance Cover My Child?

They’re covered up to your policy’s limits on each aspect of the insurance. So, if there’s a liability issue, such as property damage caused by your child driving your car, insurance will pay for damages up to the limit specified in your policy. If your child gets injured in an accident while riding with you, their medical bills will be covered up to your policy’s medical payments limit.

Your policy’s limits will be specific to you. You may purchase a policy with the state’s legal minimum limits, or you may increase your limits up into the millions for both aspects of coverage. Your independent insurance agent can advise you on ideal limits for each aspect of your car insurance coverage.

How Much Will I Pay If the Car Insurance Policy Doesn't Cover My Child?

You’ll be responsible for the remainder or whatever’s left over above the policy’s coverage limits. Medical payments coverage typically comes with $5,000 or $10,000 limits. 

So if your child got injured and required $11,000 of medical treatment, you’d pay the remaining $6,000 or $1,000, depending on your personal policy's limits. The same applies to liability coverage, meaning you pay whatever’s left over.

Can I Exclude My Child from My Car Insurance?

Yes, if you wish, you could expressly exclude your child from your car insurance policy. However, your child must be insured before they can legally drive. If you contact your car insurance company to exclude your child from your personal coverage, you must be prepared to get a separate policy for your child or have them purchase their own.

Should I Let an Uninsured Driver Use My Vehicle?

It's not a good idea to let any uninsured driver use your vehicle, whether it's your child, a family friend, or anyone else. Under most circumstances, the auto insurance policy would pay the claim for a licensed individual who drives a car with the owner's permission. 

An exception would be an unlisted driver who is a member of the household if the other driver is uninsured due to violations on their own record. In this case, your car insurance policy may not cover them if they drive your car. 

You could also risk losing your car insurance coverage altogether if you avoid telling your carrier about a driver who's using your vehicle, whether they're licensed or not. If you try to exclude a driver from your policy to save money on your premiums or for any other reason, you could wind up getting your policy canceled if your insurance company finds out. It's best not to take the risk.

Check Your Declarations Page

Be sure to review your own car insurance policy before letting anyone else operate your vehicle to be certain of what and who's covered and what's not. Specifically, your auto insurance policy's declarations page lists the terms of your coverage, as well as your location and vehicle information. You'll be able to see exactly which coverages you have and at what limits. 

Specific exclusions to your coverage are listed on this page as well. Your independent insurance agent can also review your policy with you if you have any questions.

Your independent insurance agent can also help you become aware of and review any exclusion provisions of your policy. These can include drivers and vehicles that aren't listed on your policy. You might find this on your policy's declarations page, but not always. Regardless, it's wise to be aware of your policy's exclusions.

Does My Insurance Policy Follow the Driver or the Vehicle?

Keep in mind that some auto insurance policies follow the driver, while others follow the vehicle. In other cases, the policy may cover specific situations like for listed drivers. This is another aspect of your car insurance to have your independent insurance agent review with you before letting anyone else drive your vehicle.

When listing names of family members who could, at some point, drive your vehicle, be sure to include anyone in your household who's at least 13 years old. Include these future drivers even if they're not yet licensed or even learner's permit holders. Your car insurance company considers these individuals "rated drivers" or family members who can impact your policy's premiums. Once a listed member of the family starts driving, your premiums may be affected, but there's no downside to listing them earlier.

How Can I Save Money on Car Insurance?

Working together with an independent insurance agent is the best way to save the most money possible on car insurance in your area. These agents shop and compare quotes from multiple insurance companies for you, ultimately finding you the best blend of coverage and cost. 

Better yet, they'll be there down the road to help you with filing claims or any questions you may have about your coverage. They can even update your policy for you.