Yes they should have insurance or the car they are driving needs to have insurance. If they live in the household of the car's owner, then they need to be listed on the policy.

The California Department of Insurance states in their consumer auto insurance guide for teens that generally speaking, if your parents have a standard auto insurance policy, it will cover any person in the household that drives on an occasional basis. However, when there is minor or adult of legal driving age in the household, your parents’ insurance company will require that person to be permanently added to the policy for a premium charge.

The insurance company can also decide to exclude that person from your parents’ policy if separate proof of insurance from a different insurance company is provided. An insurance company can start charging additional premium from the time that a driving permit is issued to a minor. It is up to the individual insurance company to determine when to start charging additional premium. Some will wait until the driver’s license is issued.

So if your child has received their driving permit you need to inform your insurance carrier to find out if your child needs to be added to your policy at this point as a driver or if your insurance company will allow you to wait till he or she is fully licensed before charging a premium for the child and placing them on the policy.

If your rates have gone up due to placing your child on the policy, you may want to shop around for auto insurance rates. You can start here with us.