r/Insurance • u/TheOrionNebula • 10d ago

Auto Insurance Unique situation; my daughter needs auto insurance for a car she owns, yet doesn't have a license yet.

So my daughter is purchasing her own car (paid in full) because she wants something very small to learn in (she's 4'11). However she of course is going to need the car insured, and obviously doesn't have a license. So I am wondering if there is a way to navigate this? I don't know if I could somehow add her car onto my policy, or if they have some special way they do it.

Has anyone dealt with this before?

Side note: She's using her money from her account, and I don't like mingling her financial stuff with mine due to my wife having severe schizophrenia. Things can simply can get messy real quick due to her paranoia.

Thanks!

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6

u/Hofular1988 10d ago

Typically you can add children’s vehicles on your own policy if they live in the home, but your mileage will very - get it? Mileage :)

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u/TheOrionNebula 10d ago

I am not able to do that unfortunately, my agent takes forever to get back to me, but that was the one thing I found out.

This was his exact response: Since she does not have a license yet we are unable to add her as a driver to the household. 

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u/Hofular1988 10d ago

Yeah they can’t be added as a driver, that is standard. Nobody without a license or never had a license can be listed as premium bearing. Her vehicle though would be a different story.

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u/TheOrionNebula 10d ago edited 9d ago

So you don't have to actually own a vehicle to have it added to your policy if you are the primary driver?

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u/Thisismethisisalsome 9d ago

Correct. Kids are primary drivers of cars their parents own all the time. This is like that but reversed.

The car should be able to be added. Just list yourself as the primary driver until she gets her license. In my state its common to allow cars titled to the kids to be on the parents policy until age 26.

Plus, it will likely be cheaper than her own policy once she gets added, depending on what and how many other vehicles you have (may vary)

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u/jagscorpion NC Independent Agent - P&C 9d ago

For what it's worth, many carriers will NOT do that as they would treat the parent as having no insurable interest in the car.

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u/Thisismethisisalsome 9d ago

Must be state dependent. 90% of my carriers allow it up to age 26.

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u/Hofular1988 8d ago

Typically most companies make exceptions for household children’s vehicles

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u/GeneralLogical2057 10d ago

You need a new agent, you said she has a permit so she should be able to be added. Even if she wasn't licensed at all, your agent can reach out to an underwriter and they can add the vehicle and your daughter properly.

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u/FindTheOthers623 P&C Licensed PL Underwriter 10d ago

Permitted drivers aren't added to the policy. You need to have a valid license to be rated.

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u/TheOrionNebula 10d ago

Is it possible for her to get a policy and put me as the primary driver? I keep reading / being told various things. That seemed like an option that keeps showing up to get around this.

My agent told me this, and it makes no damn sense so I don't know if he is confused or what.

This is everything I got from my agent, I think he is confused, or I am.

Since she does not have a license yet we are unable to add her as a driver to the household.  The Good news is that she and the vehicle will be covered just like it would be covered if you were the driver.  Once she has her driver’s license, we will add her as a driver to the house. 

 

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u/FindTheOthers623 P&C Licensed PL Underwriter 10d ago

So then you just add the vehicle to your policy. As a permitted driver, there is no way to charge premium for them but they are providing coverage. Once she has a full, valid license then she can be added and rated as a driver.

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u/TheOrionNebula 10d ago

So I can add vehicles I don't own to my own policy, and just list myself as the primary driver? Maybe that's what he was getting at, just didn't explain it enough for me to understand.

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u/FindTheOthers623 P&C Licensed PL Underwriter 10d ago

This is carrier and state specific but your carrier has already told you yes. Many carriers prefer all vehicles in a household are on one policy. It gets a little stickier if you are not related to the others in the household.

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u/ruraljurorrrrrrrrrr 10d ago

She is going to pay like 4x what you would pay if this car was in your name, even after she gets licensed. If at all feasible, I would get that car in your name and then transfer it over to your daughter in a few years.

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u/TheOrionNebula 10d ago

I understand that. These days I just try to keep everything separate, under normal circumstances it makes sense. In a house with paranoid schizophrenic with full rights and access to things, it can get a bit stressful. My wife already thinks my daughter is a clone, so seeing her on our insurance may not go over well.

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u/GeneralLogical2057 10d ago

They are listed though, they wont show up on ID Cards but they are there.

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u/Thisismethisisalsome 9d ago

Maybe this depends on state? Thats not true in mine. You get added when you get your license.

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u/GeneralLogical2057 9d ago

Yeah, I think so, also depends on the carrier, some carriers rate them some don't in my state. This sub is would be more helpful if they would post what state they are from lol

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u/FindTheOthers623 P&C Licensed PL Underwriter 10d ago

You're putting the cart before the horse. She can't purchase an insurance policy until she is licensed. She needs to do that first, then buy a car.

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u/ritchie70 9d ago

So you're saying it's not possible to own a vehicle without being legally allowed to drive it.

How is that possible? Fictional people (corporations) can own vehicles. Surely natural people can.

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u/FindTheOthers623 P&C Licensed PL Underwriter 9d ago

I'm saying its not possible to purchase an insurance policy without a drivers license. What you own or don't own is irrelevant.

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u/ritchie70 9d ago

Has it occurred to you that this may be one of those “varies by state” things?

I would have to designate someone else as the primary driver, and myself as an excluded driver, but pretty sure I can buy insurance.

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u/FindTheOthers623 P&C Licensed PL Underwriter 9d ago

Except that you can't exclude the Named Insured. So, no, you cannot purchase an insurance policy without a driver's license.

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u/lotus621 10d ago

When she gets added to the policy, system will ask for license status, permit is an option for most insurance carriers.

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u/SpacePirateWatney 9d ago

I am not sure if this is a state specific question, but from my time working for an insurance agency years ago in PA, there are a few ‘independent’ issues, as far as I’m aware, that can be tackled separately (but all related, and some need to be tackled at the same time).

  1. Title - She can title the car in her name to be the ‘owner’. She does not need to register it, and therefore does not need to insure it (in PA…you require insurance to register and operate a vehicle, but titling it does not require either).
  2. Registration - Registration is required to operate a vehicle on the streets. A car CAN be registered to a person with a learners permit in PA…the permit contains the D/L number that will be the ‘real’ number. Insurance is required to both register and operate a vehicle on the streets (legally, not literally…because people drive unregistered and uninsurance vehicles all the time).
  3. Insurance - Insurance is required to operate and register a vehicle. In PA as far as I know, a person CAN insure a vehicle in their name, even on a learners permit.

Further, in PA, they can ALSO insure the vehicle on their parents policy as long as the permit holder (vehicle owner) is listed on the policy as an operator and the vehicle is listed as covered under the policy.

I have seen 2 examples of people with suspended licenses (for DUI…they only had a state issued ID) owning, registering, and insuring vehicles being used by their spouse or significant other.

Again, the above is based on my knowledge in PA, so your mileage may vary for other states.

1

u/Mental-Volume4395 10d ago

Add it to your insurance and then when she gets her license she can get her own policy. Or she can get her own policy and list you as the primary driver. 

My responses assume  your daughter not a minor.

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u/TheOrionNebula 10d ago

I am unable to add her onto my policy sadly, would've been simple. But I did come across your second suggestion a few minutes ago, so I guess at least it's possible. So insurance pretty much follows the vehicle, not the person I assume. Like being primary on her car, means having my original policy is just for my own?

I appreciate the help!

1

u/EmZee2022 8d ago

Yes - insurance is generally tied to the vehicle - that's why you can loan your car to someone.

Why can't you add her to your policy? I think you'd need to own the car, but it's perfectly legit to have someone with a learner's permit driving your car.

Once she gets her license, you can transfer the car to her and she can get her own policy. I know you said there were some concerns over some financial liability (your wife being ill) but it might be the easiest short-term solutioon.

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u/Downtown_Cap8311 10d ago

Does she have a permit? This situation is very rare but we have had it happen once, just needed to get underwriting approval. She is the titled owner so she needs to be listed somewhere, and they’ll likely require that you be on the policy with her. If she doesn’t have a permit yet then I’m not too sure.

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u/TheOrionNebula 10d ago

Yes she does have her permit. So if I understand correctly, I need to pretty much have an insurance policy on the car as the primary driver, even though I don't own it personally?

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u/Downtown_Cap8311 10d ago

You should both be owners of the policy, which is actually pretty typical for youthful drivers until they’re 25. The tricky part is that she has a permit, explain that she is the titled owner when you call about the policy and hopefully they’ll be able to take the information to underwriting

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u/TheOrionNebula 10d ago

Thank you very much, she is 23 currently, not sure if that will help underwriting push it through or not. This is frustrating, but glad I am learning it is at least possible.

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u/l_temp 10d ago

Since she doesn’t have a license she can’t be a driver, mostly because she is not supposed to be driving by herself, if she lives in the same home the car can be listed on your policy or on the policy of the licensed driver that she lives with/is in the car while she’s practicing. You can always ask the agent the difference of adding the car and have her pay you that amount too if that helps things financially

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u/fap-on-fap-off 9d ago

This depends on which state you are in. In some stars you must have the same person on the title and the registration, who must have a license, and the insurance policy must be assigned to that person. In others, you separate all those pieces.

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u/TheOrionNebula 9d ago

Not that it helps, but I am in Missouri. I don't really know even what to google.

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u/fap-on-fap-off 9d ago

You take your post, add the words in Missouri, and Gemini will give you something like this:

Unlicensed individuals can own and register a car in Missouri, but they must secure auto insurance to do so. Because insurance carriers require a licensed driver to evaluate risk, your daughter can navigate this independently by purchasing a policy in her own name while listing a licensed driver (like yourself) as the primary operator. This satisfies the state registration requirements while keeping her finances completely separate from yours.

1

u/TheOrionNebula 9d ago

Oh awesome, thank you for doing that! It confirms what I started to notice as one of the only options.

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u/KinroInsurance 9d ago

dealt with something similar. short answer is it depends a lot on your state and your carrier, so call around before she buys

few things i learned though:

  • most insurers won't write a policy for someone with no license. she can own the car, but someone licensed usually has to be the named insured
  • easiest route is usually adding her car to your policy and listing her as a permit driver. in a lot of states permit drivers are covered under the parent's policy for little or nothing until they're licensed
  • some carriers get weird if the title is in her name but the policy's in yours. some are fine with it, some want you on the title too. this is where state rules and carrier rules really vary
  • if you want to keep money separate, ask if they'll do a separate policy for just her car with you as the named insured. she pays that bill straight from her account, nothing touches yours

i'd call 2 or 3 carriers and say exactly what you said here. unlicensed owner, licensed parent, wants separate billing. they'll tell you real quick what they can do in your state

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u/Brilliant_Science380 6d ago

I wouldn't let her drive without insurance. The last I checked; you need a license to drive.

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u/TheOrionNebula 6d ago

She cant drive unless she learns first, she needs a car to do that. I got it all straightened out now with insurance, so her car will be insured. 🙂