This article has been updated from a previous version.
If your children live at home and drive your car, even occasionally, your insurance company will consider them "occasional drivers." You will need to add them as secondary drivers on your auto insurance policy to ensure they have the proper coverage.
The rule also applies to others living in your household, including relatives and roommates. But when should you add a child to your auto insurance policy, and when can they be omitted?
When should you add a child to your car insurance policy?
You need not add your child to your car insurance policy in Canada until they have been licensed to drive and are driving on their own. Most Canadian insurance companies do not require you to include a teen who is still using a learner's permit and can only drive with an adult in the car for learning purposes. Once they advance in your province's graduated licensing program and can drive without a supervising adult, you will need to add them as an occasional driver to your car insurance policy.
If your adult child lives at home with you and occasionally drives your car, you should add them to your car insurance policy. You can exclude them using an exclusion form that will specifically say that they will not ever drive your insured car. Think before you do this: if your excluded child or other family member or roommate does drive your car and is in an accident, the insurance coverage could be voided.
Are there any discounts available for young drivers?
Insuring a new driver is costly but remember that you are paying to insure your vehicle first and drivers second. If your child does not have a car, you do not need to get insurance for both. You can add your child to your car insurance as an occasional driver.
Discounts you may receive for adding your children to your car insurance policy include:
- Completing a driver's education course and providing proof
- Good student and safe driving discounts
- Driving monitoring programs (including telematics devices that show safe driving)
If your child has their own car and pays for insurance, they must have their own insurance policy. Each registered vehicle owner must have their own auto insurance policy.
When don't I need to add my child to my car insurance policy?
When your child moves out of the house, they no longer need to be included on your insurance policy.
However, when your child moves out, your parents may move in. Have you recently moved your parents into your home? If they still drive, you should let your insurance company know. It is unlikely your premiums will go up if they still have their own car and insurance.
Different insurance companies rate the risks of young drivers and households with multiple drivers differently. So, it is essential to compare insurance rates to get the best deal when it is time to add your child to your auto insurance.
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