Does Auto Insurance Cover Underage Drivers?

Look – it’s exciting, having a year or two left to go before your teenager can (legally) get behind the wheel of a vehicle. Being able to drive is some kind of independence that they can’t find anywhere else, but it’s important to wait until they are of age before you hit the road. Otherwise, serious consequences could arise, which could affect their future driving history and compromise the safety of everyone on the road, including themselves.

Covering underage drivers could mean a couple of different things. For one, it could mean “does auto insurance cover if an underage driver is operating my vehicle?” or “does auto insurance cover me if I’m hit by an underage driver?” – and the answer varies depending on exactly what we’re looking at. We’ll come up with a few example scenarios and address what coverage may or may not apply.

What are the penalties for driving as an underage driver?

In Ontario, or any province in Canada, you cannot obtain a driver’s license as someone who is underage, and driving without a valid driver’s license is a severe offense which may result in a fine of between $200 to upwards of $1,000. It could also result in a conviction on the offending person’s driving record and demerit points, but of course that may not be applicable with an underage driver.

If the underage driver has their G1 and they are caught driving without a supervisor, which is a requirement of their license, their license may be deemed invalid, and they can face the same penalties as if they didn’t have a license at all.

Will my auto insurance cover me if my underaged child gets into an accident with my vehicle?

Interestingly, the terminology of “underage” in insurance terms may differ. In insurance terminology, an underage driver is any driver under the age of 25. You may have a teenager or young adult still living with you at home who has their license and is able to drive, at what point you can add them to your insurance policy. Due to their age and statistical likelihood of being involved in an accident, the “underage” driver may add a surcharge to insure as an additional driver on your policy. The exact surcharge will vary by insurer and province.

If we mean “underage” driver as in a driver who is legally not allowed to operate a motor vehicle (so 15 years and younger in Ontario) then situations will vary. If the vehicle was stolen, then your comprehensive coverage may kick in, or collision coverage to repair the damages done in a collision. The other parties’ uninsured motorist coverage may also help to cover the damages to their own vehicle.

As the parent of an underage driver who operates a vehicle illegally, especially if you were aware of the circumstances, you could be held liable for any damages or injuries and your own policy may cover the resulting legal costs if the other vehicle decides to sue you for compensation.

Will my auto insurance cover me if an underage driver hits me?

In Ontario, each party would have to seek compensation through their own provider. If an underage driver (a driver who is not legally allowed to drive) hits you, the insurance situation can be a bit more complex, as the driver likely does not have their own insurance. There are a few situations that may occur:

1. If the underage driver is not covered by any insurance: If the underage driver is not listed on any insurance policy and is not authorized to drive the vehicle, there might be issues with coverage. In this case, your own insurance policy might come into play, i.e., your uninsured motorist coverage. These coverages can help you with repairs and medical expenses, respectively, if the at-fault party does not have insurance or their insurance is insufficient to cover your damages.
2. Negligence and legal consequences: Keep in mind that allowing an underage driver to operate a vehicle can have legal and insurance implications. Insurance companies might scrutinize the circumstances, and the underage driver’s actions might be considered negligence. Legal consequences for the underage driver and potentially their parents or legal guardians could also come into play, which could be a black mark on both the young driver’s insurance and driving history as well as their parents’.

Uninsured or Underinsured Motorist Coverage in Ontario

Mandatory uninsured motorist coverage is a crucial component of auto insurance policies designed to protect drivers from the financial burden of accidents involving uninsured or underinsured drivers. This coverage steps in when you’re involved in a collision caused by a driver who lacks adequate insurance to cover the resulting damages, such as an underage driver. In such cases, your uninsured motorist coverage helps pay for medical expenses, vehicle repairs, and other accident-related costs that the at-fault driver would typically be responsible for. This coverage is required in Ontario to ensure that responsible drivers are not left without recourse in the event of an accident with an uninsured driver.

When obtaining a quote for auto insurance, it’s important to consider the benefits of mandatory uninsured motorist coverage. This coverage ensures that you’re protected even if you encounter drivers who lack adequate insurance. In Ontario, this coverage is legally required. Ask an Excalibur Defender about the benefits of upping the limits of this coverage.