Divided households...new drivers and Auto Insurance

by P.A.
(Newmarket, Ontario)

We are two separate families. We all live in Caledon, Ontario, but my daughter (18) resides at a separate residence with her mother, common-law partner and his daughter (17 and licensed). All 4 of them are licensed and there are 2 vehicles and a motorcycle in their household. The common-law partner's vehicle is registered under his father. I reside with my wife. We have two vehicles. My daughter visits with us.

My daughter just earned her license. How should she be insured and by whom? She will continue to live with her mother and use the vehicles there (motorcycle excluded) I suppose but when she visits us, she may wish to drive one of our two vehicles on occasion.

Can she have a rider type insurance that allows her to use any vehicle but gives her universal coverage?

I can't control the situation there and I pray that she is insured properly under that household but I can only look after my end.

What to do?

Answer

Hi,
Great question! Too many people try to "get away" with not reporting a teenage driver in the house.

Your daughter needs to be listed as a driver on a policy. If her primary residence is at her mother's house then she should be listed on the policy there.

If I were you I ask her mother to make sure that your daughter is listed on their policy. Assuming her mother confirms that for you, I would then contact my own insurer to advise them that your daughter drivers your car on occasion but is listed on the other policy. Only one of you should have to pay increased rates (in my opinion).

A couple of additional points:
1. when your daughter has her G1 it should not impact anyone's rates; it is when she gets her G2 that the rates on one policy will be affected (significantly);
2. To save some money on insurance, your daughter should take a driver training course that is accredited with the MTO;
3. As long as you give permission for your daughter to drive your vehicle, she is covered. But as a best practice she needs to be listed on one policy and the other parents insurer (yours) should be advised.

I hope that helps!

Read more about this topic at: Teenage Car Insurance

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PS I abbreviated your name for your privacy.