Should You Add Your Teenager to Your Car Insurance in Michigan?
In theory, all members of your family driving your vehicle should be included in the auto insurance policy covering your car. After all, it pays to be cautious and prepared, and you’ll be in less financial risk if your insurance company acknowledges the person involved in an auto accident in Michigan as someone covered by the insurance policy.
However, the rules can get confusing when it comes to teenagers—particularly those who are just driving on a learner’s permit. In Michigan, teenagers driving on a learner’s permit are not legally required to be enrolled in the family’s car insurance policy when driving the family vehicle. However, that doesn’t mean that they are automatically covered in the insurance policy should they get involved in a car accident.
There are various insurance companies in Michigan. They all have different provisions when it comes to covering uninsured teenagers involved in auto accidents.
Insurance Contractual Provisions For Teens Driving Vehicles With a Learner’s Permit
With the hundreds of insurance companies available in Michigan, you’ll be sure to find companies with different contractual provisions when it comes to covering teenagers involved in car accidents that are uninsured and are just driving with a learner’s permit.
In general, most car insurance companies will not require teens to enroll in their family’s policy to be covered by insurance. However, there are selected companies that need to have everyone registered for them to be acknowledged. To be better prepared when it comes to accidents, you should study the contractual provisions of your insurance policy to see what it says about covering teenagers driving on a learner’s permit.
You may ask: why risk facing big financial issues when you can just register the teenager and be done with it? The answer lies in the money you have to spend.
Since teenagers are bigger risks on the road, your insurance policy rates can climb up to 163% on the average when you add them to your insurance policy. If your existing insurance policy covers teenagers on a learner’s permit if they encounter accidents even without registering, then you’ll be able to save a lot of money and dedicate those funds for something else.
Auto Insurance Laws for Minors in Michigan
All individuals (including minors) that own vehicles in Michigan are required to have a No-Fault insurance policy with the following minimum coverage:
- $20,000 – bodily injury per person per accident
- $40,000 – for all persons per crash
- $10,000 – property damage liability
However, while these are the minimum rates, people are encouraged to seek for insurance policies with higher limits to make sure that they are less vulnerable from financial risks if they ever get involved in an accident.
As mentioned, the general rule is that teens driving with a learner’s permit do not necessarily have to be added to their family’s car insurance policy. However, teens should drive in a car covered by an authorized No-Fault insurance policy to accumulate their required hours behind the wheel.
Considerations When Thinking about Adding Your Teen under Your Auto Insurance Policy
To be on the safe side, it’s always better to err on the side of caution. That means that you should definitely consider adding your teenager to your car insurance policy, especially if they are licensed drivers already. Here are some issues you should consider when thinking about involving our teen driver in your family’s insurance policy:
- Inform your car insurance company of the change
Once you’ve decided that you will include your teen under your family’s insurance policy, you should involve your insurance company as soon as possible. Listing your child in the insurance policy ensures that the insurance company will cover and recognize your teen if they ever get involved in an auto accident.
- Choose the optimal coverage for your teen driver
It has been mentioned earlier that there’s a minimum requirement needed if you want to register for car insurance as a minor. However, it is recommended that you choose a plan higher than the minimum. This helps make sure that you’re covered in case you get involved in a massive accident with thousands of dollars in damages.
Find the Best Legal Representative for Your Teen’s Car Insurance Coverage Issue
You deserve the best when it comes to legal representation. This is why you should approach The Clark Law Office when it comes to issues like auto insurance policies in Michigan. We have tons of experience under our belt, and we know the best way to assist families when it comes to accidents involving teenagers and minors. If your teenager is involved in a crash, their insurance coverage could impact your claim—start your car accident claim with a Lansing attorney to ensure you receive the compensation you deserve.
