Adults or teens may need to buy underaged driver’s insurance. In some cases, you can add or buy insurance without a driver’s license.
For example, if you drive an underaged driver to and from school in their car or they have a learner’s permit, car insurance is needed. The following information gives you further details about buying underaged car insurance and the different scenarios where it is used..
1. The Driver Cannot Sign the Contract for Underage Drivers Insurance
Many states in the U.S. will not allow a person, under the age of majority (generally 18 years old), to sign an agreement or enter into a contract. If you have a teen who drives then, you’re responsible for either adding them to your insurance or buying underage coverage.
Even if you don’t drive or have a driver’s license, you’ll need to buy insurance or sign the contract for a teen. If your teen receives their license and can drive, you’ll need to purchase underage drivers insurance and act on their behalf.
Your teen may also need the insurance if they’ve already been given a car that is garaged which they cannot drive. In this case, you would be responsible for buying, at least, comprehensive coverage to cover vandalism, theft, or weather damage.
2. The Driver Has a Learner’s Permit or Is Newly Licensed
Some parents only have to add their teen to their insurance policy if their son or daughter has a learner’s permit or is attending driver’s education. They do not have to worry about an increase in their premium until their teen is fully licensed to drive.
Once the teen is fully licensed, you can buy a separate policy for their underaged driver, and add their name and vehicle, or you can upgrade your own policy.
To add a vehicle–one that your teen-will drive–to a new policy, you need to include the vehicle identification number (VIN) of the car and its make and model. Add the name and age of the primary driver. You can only do this if the underaged driver lives in your household.
If you need to add an underaged driver to your policy, you’ll have to include the auto’s VIN and the car’s make and model. Then, you’ll need to figure out how much coverage you’ll need to buy.
Whether an underaged driver has a learner’s permit or is fully covered, you need to insure them, at least, the minimum required liability coverage for your state.
State Minimums for Liability
State law bases minimums on coverages for bodily injury liability and property damage, and, in some cases, uninsured motorist coverage. Make sure your teen understands how the insurance is used and why it’s required.
If a car is not driven, but parked, or you need the added protection, you may need to buy comprehensive auto insurance. Again, this type of plan protects the vehicle for vandalism, theft, or storm damage.
3. An Emancipated Minor is Buying the Insurance
While it is generally mandatory that parents sign for minors when buying underage car insurance, there is an exception to the rule. Some minors may buy underage car insurance if they have been legally freed, or emancipated, from the rule of parents or a guardian.
Courts may approve emancipation or a teen may be released from parental rule or a guardian’s care by enlisting in the military or getting married. Parents must consent to a minor getting married or joining the armed forces.
Therefore, an emancipated teen may buy underage car insurance, provided they live in a state where their status allows them to apply and get a driver’s license.
Also, they may still be able to buy insurance if they possess the title of a vehicle that they do not currently drive or that is garaged.
4. The Driver Has a Medical Condition
Underage coverage may also be needed if the driver has a medical condition and must be driven, for instance, to and from school. If this is the case, they may already own a car, but may need to have someone drive them.
Usually, when you buy insurance, the name of the primary driver is listed. However, if your teen has a car but cannot drive it and has to be driven, you can list them as an “excluded” driver. In this case, you can buy an underage policy even if your teen is the one being driven.
How to Lower the Costs of Buying Underage Insurance
When buying underage car insurance, you’ll need to determine coverage and how to get the best premium rate.
Good Student Discount
In some cases, you can buy insurance that features discounts for good students. In fact, some insurance companies will take 20% off the cost of the coverage for a student who has a grade average of “B” or above.
Taking a Driver Safety Course
Rates for teens also drop when a teen takes part in a driver’s safety course. Doing so can reduce the cost by as much as 15%.
Buy a More Conservative Make and Model Car
Also, safer, less sporty cars are cheaper to insure. While a young person might like to drive a snazzier vehicle, they also are most costly to protect.
Look for safety options on cars such as daytime running lights, electronic stability control, and detection for blind posts. Buying an older car will also keep insurance premiums low.
Electronic Driver Monitoring
Some insurers even give you a discount for installing a device to track your teen’s driving habits – how hard they apply the brakes, how fast they drive, and when they drive.
Bundling Insurance Policies
If you buy insurance from the same insurance carrier for your home insurance and car insurance needs, you can often get a multi policy discount for bundling the protection.
Find Out More about Buying Underage Auto Insurance Now
Learn all you can about buying underage auto insurance. Doing so will help you know what to expect when it comes to insuring your teen and keeping them safe.