Custodial teen car insurance

Reader question:

Who has to pay for a teen car insurance policy in a custodial agreement, the custodial parent or the non custodial parent?

Greg

That’s a very interesting question, Greg.

There are no set custodial laws to answer the question of who need to pay for the teen car insurance coverage between two divorced parents like there would be for health insurance premiums. Driving, unlike proper health care, is considered a luxury, and thus not something that a child is required to have. It’s like how, although child support payments may be used for luxury items such as birthday presents, the intent of such things is to make up for the non custodial parent’s percentage of the child’s financial upbringing.

However, when trying to decide which parent should cover the teenager on the auto insurance policy, first of all you need to consider a couple of things. Does the teen own a car? Whose name is it registered in, then? The car insurance policy might better be followed into whoever has the vehicle registered in their name, considering that in most cases the teen car insurance follows the vehicle and not necessarily the driver.

However, from what I understand I would have to say that it is very likely that both of you will end up having to add the teenager to your car insurance premiums, so long as the teenager lives with both for a certain amount of time. Most custodial agreements end up with the child staying with the non custodial parent for at least every other weekend, a few holidays, and often summer vacation, and for insurance companies that would be plenty of time for the child to be considered a member of the adult’s household. Considering that, whether you want to add your child or not, so long as the car insurance company is aware of his existence and possession of a driver’s license, you really don’t have a choice, it’s better to just go ahead and add him. Since he lives with both of you at some point, he will have to be on both car insurance policies, or you will have trouble come claim time.

Cheers,

Fashun Guadarrama.