Is My Child Covered Under My Car Insurance?
To make sure your child is covered by your car insurance policy, add them as a driver.
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Once your child gets a learner's permit or driver's license, it's always a good idea to call your insurance company to let them know. However, if your children aren't driving and are just passengers in your car, your car insurance should cover their injuries in an accident as long as you have medical payments coverage or personal injury protection.
Is my child covered under my car insurance?
Your car insurance covers your child to drive your car if they are listed as a driver on your policy.
If your child is driving your car regularly, you should add them to your insurance as a driver.
This is true whether your child lives with you or not. If someone who isn't a listed driver uses your car and gets into an accident, you might not have coverage. That means you'll have to pay for the damages and injuries yourself, because your insurance could deny the claim.
Your car insurance policy might cover your child if they aren't listed as a driver, but it's not a risk you should take without talking to your insurance company.
Whether or not your child is covered as a driver depends on how often they use your car.
If a person has your permission to drive your car, they're typically covered as long as they only use it occasionally. The person is covered because you gave them permission, which is called "permissive use." Usually, this applies to friends or family members occasionally borrowing your car. If your child has moved out but needs to borrow your car once in a while, you usually don't have to add them to your policy. Check with your insurance company to make sure that's the case.
However, if someone is regularly driving your car, or if they have regular access to it, they need to be listed as a driver. When your child gets his or her permit or license, they're likely going to be driving often. Even if they aren't, they still probably live with you and have access to your car. This means you should add them as a driver on your policy.
Coverage if your child is a passenger
Car insurance covers your passengers, including your children, as long as you have the proper coverage.
If you're in an accident and your child is hurt, their injuries are covered as long as you have medical payments coverage (or personal injury protection coverage, depending on your state).
If you don't have these coverages, you'll be responsible for paying for your child's injuries if you cause an accident. If someone else causes the accident, their liability coverage should pay for your child's medical bills.
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How much does it cost to add a child to my car insurance?
Adding a teen driver to your car insurance can add about $400 per month to your car insurance bill, on average.
On average, State Farm and Geico have the smallest increases when adding a 16-year-old. Allstate has the largest average increase and the highest average rate overall.
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If you have a teen who is close to getting their license, it could be a good idea to call your insurance company and get a quote for adding them to your policy. That way, you're prepared for the extra cost. Plus, this gives you time to shop around and see if you can find a cheaper rate with another company.
Keep in mind that if you or your teen buys their own car, you'll have to account for the cost of adding the car to your policy, as well.
Cost to add a child to parents' car insurance
Company | Couple rate | Rate with child | Increase |
|---|---|---|---|
| Geico | $362 | $540 | $178 |
| State Farm | $222 | $407 | $185 |
| Progressive | $437 | $781 | $343 |
| Allstate | $983 | $2,036 | $1,052 |
| USAA | $223 | $426 | $204 |
Average costs for a 45-year-old couple and a 16-year-old without their own car living in Texas. USAA is only available to military members, veterans and qualifying family members.
The high cost for adding a teen driver is worth it to avoid the risk of having to pay for an accident they cause. Car accidents can cause hundreds of thousands of dollars in damage if someone is injured, and without proper insurance, you'll have to pay the costs yourself.
Additionally, if you let your teen drive and they aren't added to your policy, your insurance company could drop you if it finds out.
How to save money when adding a teen driver
Shop around. Adding a teen driver is a great time to get quotes from other insurance companies. You can compare rates, discounts and customer service to see which company is the best for you.
Ask about discounts. Most insurance companies offer several discounts specifically for young drivers. You might be able to save if your teen gets good grades, completes a driving safety program or is away at college without a car.
Buy your teen a cheap car. Cheaper cars are generally cheaper to insure because they cost less to repair. Make sure you get a quote for a car before you commit to buying it, so you know what the cost will be. You could also avoid adding a car to your policy by letting your teen drive one of your existing cars.
Opt for liability-only coverage. If you buy your teen a cheap car, you might be comfortable with liability-only coverage for that car, which can save you money. This type of coverage means your insurance will only pay for the damages and injuries you or your child cause someone else and injuries to the driver and passenger of your car. The damage to your teen's car isn't covered.
Increase your deductibles if you want full coverage. The higher your deductibles, the lower your monthly rate, but the more you have to pay to fix your car. Your collision deductible generally has more of an impact on your rate than your comprehensive deductible. And make sure you choose a deductible you can reasonably afford to pay in case of an accident.
What happens if I don't add my child to my car insurance?
If you don't add your child to your car insurance and they get in an accident, your company could refuse to pay for it.
This can leave you with massive bills, depending on the severity of the accident. You could even face lawsuits, and you won't have an insurance company to step in to help defend you.
Even if your company pays for the damage and injuries from the accident, it's possible and even likely that your coverage will be dropped after.
That's because choosing not to add your teen driver to a policy breaks your agreement with the insurance company. Essentially, you knew that your child was driving the car and you kept that fact from your insurer. This is called "material misrepresentation," because the insurance company was never given the chance to adjust your policy and add your child.
How long can children stay on their parents' insurance?
Your child can stay on your insurance policy as long as they live with you or regularly drive your car.
There's no rule that a child has to get their own car insurance at a certain age like there is with health insurance.
Your child needs to be listed on your insurance as long as they are regularly driving or have access to a car in your household. This means you should only remove them from your policy if they move out.
Even if your child has their own car and their own car insurance policy, they still need to be listed as a driver on your policy if they live in your household. You will also need to be listed on their policy. That's because you have regular access to each others' cars.
The only way around this is to "officially exclude" your child from your policy, but this usually isn't a good option. If your child needs to drive your car for any reason, even in an emergency, they aren't covered if they're excluded. Technically, they'd be driving without insurance.
Frequently asked questions
Does my auto insurance cover my child?
If your child is driving, you should add them as a driver to your policy to make sure they are covered. As long as you have medical payments coverage or personal injury protection (PIP), your car insurance should cover your child's injuries if they're a passenger in your car.
Can your child drive your car if they are not on your insurance?
If your child doesn't live with you and you give them permission to use your car once in a while, your insurance will likely cover them. However, if your child lives with you and has their license, they should be listed on your policy.
Can I stay on my parents' car insurance after 26?
Yes, you can stay on your parents' car insurance policy after age 26 as long as you still live with them or you regularly use their car. There's no rule about when children have to be removed from their parents' car insurance. If you move out, though, you likely need your own policy.
Methodology
Monthly rates are for a 45-year-old married man and woman living in Texas, each with a 2018 Honda Civic EX, and a 16-year-old daughter without her own car.
Both cars have full coverage with the following limits:
- Bodily injury liability: $50,000 per person and $100,000 per accident
- Property damage liability: $50,000 per accident
- Uninsured and underinsured motorist bodily injury: $50,000 per person and $100,000 per accident
- Comprehensive and collision coverage: $500 deductible
Rates account for all residential ZIP codes in Texas and are for some of the largest companies by market share.
ValuePenguin's rate data comes from Quadrant Information Services, which sources rates from publicly available insurance company filings. Rates on this page are for informational purposes only. Your own quotes will likely be different.
Insurance Writer
Cate Deventer is a ValuePenguin writer who specializes in health insurance, Medicare, auto and home insurance. She's been a licensed insurance agent since 2011.
She started her insurance career working as a customer service agent for State Farm. She later moved to an independent agency, where she worked with several insurance companies and hundreds of clients. She quoted policies, filed claims and answered insurance questions. In 2021, she pivoted her career and began writing about insurance for Bankrate. She moved to ValuePenguin in 2023 and began writing about health insurance and Medicare.
Cate has a passion for helping readers choose insurance to fit their needs. She enjoys knowing that her research and knowledge help people choose insurance products that make a positive difference in their lives.
How insurance helped Cate
Cate used her health insurance knowledge to navigate a surgery in 2023. Understanding how her policy worked let her focus on recovery instead of worrying about bills.
Expertise
- Health insurance
- Medicare & Medicaid
- Auto insurance
- Home insurance
- Life insurance
Credentials
- Licensed Life, Accident & Health Insurance Agent
- Licensed Property & Casualty Insurance Agent
Referenced by
- CBS
- NBC
- Wall Street Journal
Education
- BA, Theatre, Purdue University
- BA, English, Indiana University
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
