It is usually easier and less expensive for a newly licensed driver to be added to their parent's auto insurance policy than to start up their own policy, especially if it is a teen and they do not own their own vehicle. If your son does own his own vehicle than he may get his own insurance policy, but if he is a minor than a parent or guardian will need to sign on the contact with him.

If you have not already done so, inform your car insurance provider that your has become licensed. At this time they should be able to tell you if they require you to add him to your policy or how to set up his own policy on his vehicle.

When having other drivers on your policy that drive your vehicles you typically are responsible for their actions in the car, this is termed vicarious liability. Also if your son is living with your and claimed as a dependant than likely laws also can hold you responsible for his actions. To find out about your state's liability laws you should get legal advice from a lawyer or other law expert for your state.

If the liability laws allow for you to be held responsible for your son's actions then if he was in an accident and injuries or damages sustained by the other party are over the car's insurance limits, you and your personal assets (such as your house) may be put at risk if a judgment is found against you in a lawsuit.

If you do not want to have your personal assets at jeopardy make certain to get high enough limits on the auto insurance policy to protect you. You may also want to think about getting an Umbrella policy.

With an umbrella policy you list what items you want covered (i.e. home, boat, cars, etc) and then those listed items are underwritten and a rate is given for the premium to cover up to 1 or 2 million dollars in liability. See our article The Basics of a Personal Liability Umbrella Policy for more information on this subject.

We have partnered with Safeco to help you find the best rate for Umbrella insurance.Safeco's Personal Umbrella policies are competitively priced and offer exceptional coverage. You can receive coverage up to $2 million.

Visit this link to umbrella policies or call 1-800-936-0356 and speak with our partners at Safeco Insurance for a quote.