Reader’s Question:

I’m from Dearborn, Michigan and I have a teenage son who just turned 18. My insurance company said that I have to add him to my policy. Why do I have to do that if my car is covered anyways no matter who drives it? Is there a way I can get a cheaper auto insurance?

Sarah

Dearborn, MI

In making auto insurance calculations, insurance companies include risk factors like other people who have regular access to your cars. This is the reason why they require all licensed drivers in your household to be listed on your policy.

Insurance companies usually use classifications that reflect possible liability exposure on the part of the insurer as a measure to predict bodily injury or property damage resulting to accidents involving another person from your household’s operation of your vehicle.

If your teenage son gets into an accident while in the process of getting his license, and you fail to inform your insurance provider, coverage may not be extended. Some states allow the accident to be covered but then charge you for the premiums you should have paid up to that time for the teen to be on the policy.

Also in some states intentionally not reporting any licensed driver from your household to your insurance carrier and adding him as a driver can be interpreted as a form of insurance fraud.

Insuring teen drivers can be expensive since they are statistically speaking prone to road accidents for being inexperience and immature drivers. Good news is that there are ways to bring down the increase in insurance rates due to adding a teen to your insurance policy. So start discussing the available discounts you can take advantage of with your Dearborn, MI agent such as a good student discount, taking a driver’s education or driver’s improvement class, and etc.