Minors: Their Own Auto Insurance?

In the United States, minors are generally not allowed to buy their own car insurance policy until they are 18 or 19 years old. However, there are some exceptions. For instance, in most states, 17-year-olds can obtain their own car insurance policy if a guardian or parent co-signs or if they are emancipated. Additionally, the laws regarding car insurance for minors vary by state, so it is important to check the specific regulations in your state.

Can a 17-year-old get their own car insurance?

Yes, 17-year-olds can get their own car insurance, but it will be expensive. Insurance companies deem younger drivers to be a higher risk, and this is reflected in the premiums they charge. A fully comprehensive policy for a 17-year-old costs, on average, £1,036, compared to £872.41 for drivers in their 30s and just over £480 for drivers in their 50s.

There are several reasons for this price discrepancy. Firstly, younger drivers have less experience on the road and are statistically more likely to be involved in an accident. According to the road safety charity, Brake, one in five drivers crash within a year of passing their test. Drivers aged 17-24 account for 19% of all car driver fatalities, and vehicles driven by younger drivers are involved in 24% of fatal crashes. Young male drivers are four times more likely to be killed or seriously injured in an accident than older drivers.

Secondly, younger drivers tend to drive faster because they underestimate the risks, and their inexperience means they cannot spot hazards as easily. They are also more likely to use their mobile phones at the wheel, less likely to wear a seatbelt, and more likely to drive at night when visibility is poor.

However, there are ways to reduce the cost of car insurance for 17-year-olds. Here are some options:

• Take out black box insurance: Also known as telematics insurance, this involves installing a device in your car that monitors your driving habits. Insurers will look at how fast you drive, how sharply you brake, when and where you drive, and how far. If you drive safely and within the speed limit, your premiums will be lower than those who drive erratically. Some insurers may adjust your premiums monthly, while others will offer a discount at renewal.
• Add an experienced driver to your policy: Adding a parent or guardian to your policy as a named driver can bring premiums down. This is because having an experienced driver on the policy offers assurance to insurers. However, the 17-year-old must be the main driver, and the older driver must only be using the car occasionally, or this will be considered 'fronting', which is illegal.
• Take an advanced driving course: Insurers may reduce your premium if you have taken an advanced driving course, such as Pass Plus, as it means they will consider you a safer driver.
• Choose a car in a lower insurance group: Cars are assigned to one of 50 insurance groups, with the cars in group one being the cheapest to insure. Generally, vehicles with smaller engines, less power, and cheaper repair parts fall into the lower groups.
• Pay annually: Although it requires an upfront payment, paying for your insurance annually will be cheaper than paying in monthly instalments, which usually include added interest.
• Limit your mileage: The fewer miles you drive, the less likely you are to be involved in an accident, so your premiums should be lower. However, you must be honest when stating your estimated annual mileage, or you risk invalidating your insurance.
• Increase your excess: Choosing a higher voluntary excess will lower your insurance premiums, but make sure the amount is still affordable.
• Avoid car modifications: Cars with a new stereo system or alloy wheels are more attractive to thieves, so the risk of theft is higher. Some insurance providers may refuse to insure a modified car, and those that do will likely charge higher premiums.
• Park off the street: Insurance providers consider cars kept on private driveways or in secure garages to be less likely to get damaged or stolen, so your premium will be lower.

It is important to note that driving without insurance can lead to serious trouble, including fines and losing your license.

What are the requirements for minors to get car insurance?

In the US, the requirements for minors to get car insurance vary by state. In most states, a minor can get their own car insurance policy if they are 18 or older. However, in some states, the age of majority is higher, at 19 or 21.

Minors who are 16 or 17 years old typically aren't allowed to buy car insurance on their own because they are considered too young to legally enter into a binding contract. In these cases, a guardian or parent will usually need to co-sign the policy. An exception to this is if the minor is emancipated, in which case they can buy their own insurance policy, but it will likely be more expensive than if they were on a parent's policy.

There are three ways a minor can become emancipated:

• Getting a court order from a judge
• Getting married (usually requiring parental consent)
• Enlisting in the military (usually requiring parental consent)

In addition to age requirements, there are other factors to consider when insuring a minor. The type of car they drive, the average insurance prices in their state, and the incentives and discounts offered by the insurer can all impact the cost of insurance. For example, newer cars with safety features like a back-up camera or automatic braking may lower insurance premiums.

It is worth noting that adding a young driver to an existing policy can be expensive, with insurance premiums increasing by an average of $3,726 annually. However, there are ways to save money, such as taking advantage of good student discounts, safe driving discounts, and telematics programs.

How much does car insurance for minors cost?

The cost of car insurance for minors varies depending on several factors, including age, gender, driving history, and the type of vehicle driven. It is generally more expensive to insure minors than older, more experienced drivers due to their higher risk of accidents.

In the United States, minors below the age of 18 are typically not allowed to purchase their own car insurance policy unless they are emancipated or have a parent or guardian co-sign. As a result, many minors are added to their parent's or guardian's existing insurance policy, which is more cost-effective.

The average cost of adding a teen driver to a parent's insurance policy is around $278 per month or $3,726 per year, although this can vary depending on the insurance company and other factors. The cost of adding a teen driver can increase the family's insurance premium by 70% to 150%.

For minors seeking their own insurance policy, the average cost is significantly higher, at around $532 per month or $6,384 per year. This cost can be influenced by the factors mentioned above, as well as the specific discounts offered by insurance companies.

To save on insurance costs, minors and their parents can consider various discounts offered by insurance providers, such as good student discounts, low mileage discounts, telematics discounts, and family plan discounts. Additionally, choosing a vehicle with more safety features and lower horsepower can also help reduce insurance costs.

What are the risks of minors not being insured?

In most states, minors cannot be on their own auto insurance policy. However, minors who are emancipated, or those who have their parent or guardian co-sign, can get their own auto insurance policy.

Financial Risk for Parents

If a minor is driving a vehicle but is not listed on their parent's auto insurance policy, the insurance company could deny coverage in the event of an accident. Some companies may agree to cover losses caused by a minor, but the costs will have to be recouped by the parents in instalments. Other companies may treat the situation as insurance fraud if they suspect the minor was left off the policy intentionally.

High Insurance Premiums

Minors who are eventually insured will be deemed high-risk drivers, resulting in higher insurance premiums. This is because insurers consider the probability of a driver being involved in an accident when setting rates. Teenage drivers are three times more likely to be involved in fatal car crashes than drivers aged 20 and above, and police data suggests they are four times as likely to be involved in incidents of all severities.

License Suspension or Revocation

If a minor is caught driving without insurance, their license could be suspended or revoked, and they would be deemed a high-risk driver. This could result in even higher insurance premiums or insurance companies refusing to provide coverage.

Lack of Protections in Place

Minors who are not insured will not have the necessary protections in place in the event of an accident. For example, health insurance coverages often have exceptions for car accidents, limiting the types of treatment and medical care available.

Voided Policy

In some states, such as Michigan, failing to inform the insurance company about a minor driver can result in the entire policy being voided. This means the insurance company will have no legal obligation to provide any benefits or liability coverage if a crash occurs.

Legal Consequences

If a minor is not listed on their parent's policy and gets into an accident, the parent, as the titled owner of the vehicle, can be sued under the owner's liability statute and found personally liable if the injuries are worth more than the insurance coverage.

What are the options for minors to get insured?

There are several options for minors to get insured, depending on their age, location, and circumstances. Here are some of the options:

• Parental Insurance: Minors can be added to their parent's or guardian's insurance policy. This is often the most cost-effective option, as standalone policies for teens are typically much more expensive. In the United States, children can remain on their parent's health insurance plan until the age of 26, even if they are married, living elsewhere, or employed. Similarly, for car insurance, minors can be added to their parent's policy, and some companies allow listing a teen with a learner's permit at no charge until they become a fully licensed driver.
• Emancipation: Emancipated minors can buy their own insurance policy, but they may need to work directly with an insurance expert instead of shopping online. Emancipation usually occurs through a court order from a judge, marriage (usually with parental consent), or military enlistment (typically also with parental consent).
• Individual Policy: Minors above the age of majority in their state (typically 18) can purchase an individual insurance policy on their own. However, this option tends to be more expensive than being on a parent's policy.
• Short-Term Policy: Insurance companies often offer short-term or "student" insurance policies to bridge the gap between school and an individual's first job. These plans are often more basic and affordable.
• Government-Funded Programs: In the United States, millions of children and teens qualify for free or low-cost health coverage through Medicaid and the Children's Health Insurance Program (CHIP).

Frequently asked questions