Can Teens Get Their Own Car Insurance Policy?

Reader’s Question:

Im only 17 years old and will be purchasing my first car net month or so. Is it possible to get car insurance without my parents?

Grey

Detroit MI

It is unlikely that you will be able to purchase car insurance policy without your parents or a legal guardian to help you sign with the contract.

An auto insurance policy is a legal contract. Many states require policyholders to sign the documents to make them binding and insurers generally have underwriting guidelines restrictions to the named insured should not be under the age of eighteen. Well since you said that you are 17 years old, it is unlikely that you can get your own car insurance policy without your parents with you to sign the contract with you.

Typically, you need list all members of the household that is 14 years old and older, whether they are licensed or not. These household members must be included in the rating otherwise they should be excluded specifically on the policy.

You can purchase an auto insurance policy but, because of your age your parent would need to sign the documents with you.

For the meantime, if you still live with your parents, you can be added to your parents policy until you become 18 years old. If your parents are worried of getting expensive car insurance rate, you can share payment for the premium until you get your own policy. Keep in mind that it is much cheaper to be added to your policy than having a separate policy.

Do I Have To Add My Young Driver To My Auto Insurance Policy?

Reader’s Question:

I live in Ann Arbor, Michigan and I would like to know if I have to name my sixteen year old son as a driver on my car insurance policy? I have been told that if I have auto insurance then anyone I permit to drive my car is covered.

Jerome

Ann Arbor, MI

Most insurance carriers in Ann Arbor, Michigan require you to list all licensed household members on your car insurance policy since they are a risk factor the insurance carrier is allowed to take into account when determining your car insurance rates. According to the MI insurance regulator, the Office of Financial and Insurance Services, in their insurance consumer information sheet that your insurance carrier will ask about all licensed drivers in your household and look up their driving history as part of the rating process.

While automobile insurance normally covers those that the vehicle owner gives permission to operate it, the insurance carrier also has the right to require as part of your car insurance policy that you tell them of all licensed household members so they can pull their driving history and rate you accordingly. Friends that may borrow your vehicle from time to time are not the same type of risk for an insurance companies and that is why friends and neighbors are not required to be listed on your auto insurance policy while household members are. Household members obviously have access to the automobile that those living outside of your residence do not.

If your son is just starting the Michigan graduated driver licensing (GDL) process and only has his learner’s license you should inform your insurance carrier. It may be that they will permit you to wait until he is fully licensed before requiring him to be added or will want him added now at this stage.

You can contact your insurance carrier to determine what they require of you regarding listing your sixteen year old son on the car insurance policy. If you have specific MI insurance law questions you can contact the Michigan insurance regulator.