It is not usually a state law but instead insurance company requirement that you add all licensed drivers in your household as drivers to the policy. If there is a person that will not be driving a car some insurers will allow you to exclude them from the policy however if that person did drive the car, even in an emergency situation, they would not be extended any coverages.
Insurance company guidelines differ but in general insurance carriers will require you to list all licensed drivers in your household on your insurance policy as we mentioned above and this is due to the insurer determining rates from the risk factors of those that drive the vehicles.
An insurer is permitted to consider all resident operators of an insured vehicle in rating of an auto insurance policy. This includes your children since as licensed drivers they are a risk factor for the insurance company.
Insurance companies in are permitted by state insurance laws to use classifications that reflect a possible exposure for liability on the part of the insurer, in the event that bodily injury or property damage occurs due to that child's operation of the vehicle.
The car is covered for the drivers you have listed on your policy and with most insurance policies this will also extend to friends who on occasion borrow your car. The friend (considered by the insurance company as a permissive user) does not need to be added normally since they do not drive the car on a regular basis and thus would not be considered in the risk assessment of the insurer however your child has access to the car since they live in the household and can use it on a regular basis so does need to be taken into account by the insurer when determining rates.
Insurance rates for teenagers are high due to the fact that they are inexperienced drivers and statistics show that young drivers are more likely to be in accidents. As they gain experience and mature as drivers your children's rates should come down. Also you can ask your insurance company if discounts are available to help balance out the higher rate from insuring your children on your policy.
In OR if your child is under 25 and has good grades in school then a discount may be available through your insurer.
The Oregon Insurance Division notes that if your teenagers do not own cars; make sure your insurer understands which cars they are going to be driving and whether it will be occasional or principal use.
So though insurance companies’ terms and guidelines vary most all will require you to list your licensed teenagers on the policy so that they are properly covered when driving. Without them being listed there is the possibility of claims being denied or we have heard of some instances where the claim is approved however parents are then back charged for the premiums that should have been paid for their children to be covered.