Car Insurance for Children of Divorced Parents: What to Know
If you’re getting a divorce, it’s important to make sure your teen driver has proper car insurance coverage on your or your ex-spouse’s policy.
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March 5, 2024
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Getting a divorce when you have children can be a complicated process. Not only do you have to potentially figure out custody agreements and child support, but if you have teen drivers, you also need to make sure they have proper car insurance coverage between your and your ex-spouse’s separate policies.
Here’s what you need to know about your child’s car insurance plan after divorce, comparing rates, and saving money on insuring a young adult.
Who insures a teenage driver after a divorce?
If your teen is still a minor, the custodial parent’s car insurance will typically give your teen car insurance coverage.1 Whoever has primary custody of your 16-year-old or 17-year-old driver should list the teen driver on their current policy, especially if they spend most of their time at your house. Ask your insurance agent whether the non-custodial parent also needs to list them on their auto insurance coverage.
If you share joint custody, the rules are a little different. You and your ex-spouse will both probably need to add your young drivers to your current car insurance policy if the kids are using a parent’s car at both homes.1 Once your child turns 18, you should still consider whose car they have access to when figuring out insurance.
What if my teen has their own car?
If your teen has their own car, they can usually purchase their own car insurance policy, as long as they’re at least 18 years old. But it’s cheaper for them to add their vehicle to your policy, as car insurance rates for teens are much more expensive than for older drivers.
If your teen parks their car at your address, then you can add their vehicle to your car insurance policy. But if they park the vehicle primarily at your ex-spouse’s address, then the other parent can add them to their policy.
Who’s responsible for paying for teen car insurance?
The teen’s parents or legal guardians are responsible for any damages and injuries that a teen driver 17 years or younger causes. When the teen turns 18, the parents or guardians are no longer responsible for their children’s liabilities. But if the parents added their teen drivers and their vehicles to a car insurance policy, the policy will cover liabilities, up to the limits.2
How to save on teen car insurance
Insuring a teenager is expensive; it costs an average of $198 per month for liability coverage and $350 per month for full coverage.
You can cut costs and get cheap car insurance by looking for discounts that your teen qualifies for and encouraging them to practice safe driving habits. Here are some ways to save on your teen’s car insurance costs:
Driver’s education: Enrolling your child in a defensive driver course, like the teenSMART program, can help reduce your car insurance rates.
Discounts: Insurance companies offer rate reductions through good student discounts, student-away-at-school discounts, and other teen-specific discounts.
Bundling policies: Companies also offer discounts if you buy your car insurance and home or renters insurance together.
Safe driving: Drivers without incidents or accidents on their records typically pay cheaper rates. Make sure your teen practices safe driving to avoid rate increases at renewal.
The cost of insuring a teen
The average cost of car insurance in the U.S. is $103 per month for liability and $182 per month for full coverage. Compared to what teen drivers pay on average — $198 per month for liability coverage and $350 per month for full coverage — teen car insurance is much more expensive.
Here are some of the best car insurance companies and their average quotes for teens.
Keeping your teen driver safe
As a parent, you want nothing more than to keep your child safe. When they start driving, it’s time for tough conversations about how to stay safe on the road. Car accidents are the top cause of death for teenagers, according to the Centers for Disease Control and Prevention.
Have a conversation with your former spouse about setting rules for using cars at each of your homes. These rules could include:
No using cell phones or texting while driving.
Limit how many passengers your teen can have in the car when they’re behind the wheel.
Set boundaries around where your child can take the car.
Your child can call you for a ride at any time if they (or another driver) aren’t fit to drive, no matter why that’s the case.
Everyone must wear a seat belt in the car at all times.
The posted speed limit is the law. Getting a speeding ticket means losing driving privileges.
No driving in bad weather. If bad weather is on the way, your teenager should consult with you before they drive.
Car insurance for child of divorced parents FAQs
Here are the best cars for teens to drive, and check out the answers to common questions about car insurance for children of divorced parents below.
Do you need new insurance after your divorce?
Yes. You most likely won’t be able to stay on your ex-spouse’s insurance policy. Make the switch easier by comparing quotes for you and your teen together.
Will your car insurance cost more after your divorce?
Probably. Most car insurance companies offer lower rates to married drivers. But some companies don’t give much weight to marital status, so you’ll probably still be able to find an affordable policy that fits your financial needs.
Should you get your teen driver their own plan?
No, you shouldn’t list your teen driver as a policyholder — the cost will be very high. Many auto insurance companies won’t provide coverage at all to a teen policyholder because it’s too much of a risk. Add them to your or your ex-spouse’s policy instead.
What else can you do to keep your teen driver safe?
Does your kid take their phone everywhere? Consider apps that help your young driver stay safe. For example, there are safety apps that disable texting and emailing when the car is going faster than five miles an hour. Your insurance company may have recommendations (or even their own app) and may offer discounts linked to using said apps.
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