1) Named-driver Exclusion: If the teenager's parents have a named-driver policy that excludes the teenager, the teenager will need their own insurance. A named-driver policy explicitly includes specific individuals who are allowed to drive the insured car. If the teenager isn't listed as a named driver, they may not be covered.
2) Regular Use of the Car: Even if the teenager is not excluded, they may need separate insurance if they regularly use the parents' car. Regular use is defined differently by different insurance companies, but it usually means using the car for a substantial portion of the time, such as for daily commuting to school or work.
3) Commercial Use: If the teenager uses the parents' car for commercial purposes, such as delivering food or rideshare driving, they might require their own commercial auto insurance. Standard personal auto insurance policies typically exclude coverage for commercial activities.
4) Higher Risk Factors: If the teenage driver has a poor driving record, convictions, or other risk factors, the parent's insurance company might require them to get their own policy.
5) Legal Requirements: In some jurisdictions, there might be legal requirements for teenage drivers to carry their own insurance, regardless of their access to a parent's insured vehicle.
To ensure proper coverage and avoid potential gaps, it is essential to discuss insurance needs with the parents' insurance company and clarify coverage details, exclusions, and any applicable requirements for teenage drivers.
