Car Insurance; Should You Get Your Kids Listed on the Policy?

Date Jun 2, 2020
Blog category car insurance
By Staff Writer


We all know the importance of car insurance, and how it’s there to protect us if the worst were to happen while out on the road. For drivers with families, it’s an absolute must - especially those families with teenagers who are also driving the vehicle.


One thing that parents tend to miss when taking out insurance is that their kids need to be listed as drivers on it. As most accidents in New Zealand happen to drivers under the age of 18 years old, it’s important that all young drivers are covered under some sort of car insurance policy.


If you’re taking the time to compare car insurance policies online, you’ll find that many insurers have the option to add on additional drivers to your cover. In this blog post, we discuss everything you need to know about listing your kids on your car insurance policy.



Kiwi teen driving confidently knowing he’s covered for car insurance



Why should you add your kids to your car insurance policy


No one likes to think of the worst - but consider this; you let your son or daughter drive your car because you know they’re safe and not going far. They are then involved in an accident where they are at fault, and four vehicles in total are involved in the crash. If they are not covered under your insurance policy, your family would be responsible for all the costs involved in repairing or replacing the vehicles, as well as medical care for those who are injured.


Could you afford the thousands and thousands of dollars it would take to do this? Most likely, the answer is “of course not!” However, you can easily avoid the stress and financial burden by simply adding your children on to your car insurance policy.


So for anyone thinking it’s fine for their kids to use the car because they’re only popping around the corner, think again! Even driving short distances doesn’t guarantee safety, no matter who is driving the car.


What type of car insurance should your kids be listed for?


If you’ve spent time online searching for car insurance quotes, you would have quickly noticed that there are a few different car insurance plans available. Generally, you’ll find most insurers offer three levels of car insurance; third party, third party with fire and theft, and full comprehensive cover.


For those that are looking for cover where they intend to add their children on to the policy, it’s highly recommended that you take out the highest level of cover - full comprehensive cover.


Full comprehensive car insurance will generally cover you and any listed drivers for the following: accidental loss of vehicle, accidental damage to vehicle, fire and theft, lock and key replacement, towing costs, car contents, and emergency transport and accommodation.


When is it not necessary to list your kids for car insurance?


While there may be many situations where members of the family share the car, this isn’t the case for everyone. For those families where each person has their own car to use, it isn’t overly necessary to have your kids listed on your own policy (unless they still borrow your car on the odd occasion).


Other situations where it wouldn’t be necessary to list your kids on your insurance is if they have their own car insurance policy. Although there are some car insurance companies that only insure the listed vehicle, other insurers will cover the driver - so it doesn’t matter what vehicle they are driving at the time, they’ll be covered no matter what.


At the end of the day, it’s all about weighing up the pros and cons. As mentioned above, you may not consider it necessary to have them covered under your insurance if they are only driving a short distance - but are you prepared to take that chance? If not, you should add your children as drivers under your policy.


What if your kids have their own cars?


Do your children own their own cars? If so, there’s a chance that you haven’t listed them under your insurance. However, it is important to try and set a good example for them, and teach them all about responsible driving and protecting themselves if the worst were to happen.


Regardless of how much money their car is worth - whether it’s a few hundred dollars or a few thousand dollars - you should still stress to them that they need their own car insurance. Give them a potential scenario - such as “if you caused an accident and another car was totalled, could you afford to replace their car?” The answer is likely no, which should prompt them to at least consider taking out third party insurance.


If they can’t afford to take out insurance - which is likely for many teenagers - you can simply offer to pay for the insurance yourself, as you can’t really put a price on knowing that your child is protected if something bad were to happen out on the roads.


If for some reason your son or daughter needed to borrow your car for a certain period of time, you can always have them added to your insurance for a set period of time. For example, if their car is away at the shop getting repaired.


Get a quote for car insurance now


Ready to take out a new car insurance policy and have your children listed as drivers? Here at Compare Bear, we help you compare car insurance quotes from the leading insurance companies in New Zealand. We’ll show you the latest policies available, and list them by best price and features.


If you’re looking for full comprehensive cover, Cove Insurance are offering new customers a great deal with the first month of insurance for FREE (up to $100)! On top of the standard full cover, this policy includes personal liability insurance of up to $20 million, glass repair and towing costs.


If you’re looking to get your young driver on third party insurance, Protecta are offering new customers up to $30 off their annual premiums!


Head on over to our car comparison tool and get ready to start saving big bucks off your car insurance!