An insurance policy is a legally binding contract. Since minors (under 18 in most states) do not have the same legal capacity to enter contracts, insurance companies usually require an adult (parent or guardian) to sign or co-sign.
Even if a minor can legally own and register a vehicle in some states, many insurers will not write a policy solely in a minor’s name. They may require a parent or guardian to appear on the policy as a named insured or co-policyholder.
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- In most states, 16-year-olds cannot independently purchase car insurance because they are minors and legally unable to enter binding contracts.
- To obtain car insurance, a 16-year-old must typically be added to a parent or guardian’s policy or have an adult co-sign the contract.
- Emancipated minors, who are legally recognized as independent from their parents, may be eligible to purchase their own car insurance policies.
What is the role and responsibility of a co-signer or a parent on a teenager’s policy?
Minors can’t typically enter into binding contracts, so the co-signer or parent will assume legal responsibility for the minor. This means they’re accountable for ensuring that the policy remains in force and that premiums are paid on time.
If the teen fails to make payments or breaches the policy’s terms, the co-signer or parent is financially responsible. If an accident or claim occurs, they may face higher premiums or other consequences.
The parent or co-signer is often involved in decisions about coverage levels, deductibles and policy changes. They also oversee whether the teen meets the driving guidelines or safety requirements the insurer sets.
A teen is usually added to a parent’s existing auto insurance policy. This arrangement can help build the teen’s insurance history, which may lead to lower premiums when they eventually get their own policy.
What is the process for an emancipated minor to obtain auto insurance independently?
First, minors must have official legal documentation showing their emancipated status, which typically grants them adult rights and responsibilities in the eyes of the law.
Emancipated minors should contact multiple insurance companies—some may be more willing than others to insure a minor with emancipated status. Insurers may require proof of income or other evidence that the minor can pay for premiums independently.
As with any insurance application, the minor must provide information about their car (make, model and age) and driving record (if any).
Final thoughts
In most states, teenagers who are 18 or older can usually buy their own car insurance. However, some states have a higher age of majority, which is when a teenager is considered a legal adult. A few states also allow younger teens to purchase insurance under specific conditions.
Because car insurance requirements differ across states, teens and their parents should research state laws to determine when it’s possible to purchase a policy independently.
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