Every generation is different. One difference I never imagined was that large numbers of kids in any generation would put off obtaining a driver license. For baby boomers, a driver license was a rite of passage. Every kid I knew wanted to be behind the wheel at age 16. That changed noticeably in the last 15 to 20 years with millennials and continues today with Gen Z. While each family, teen, and young adult must decide what works for them, driving is a privilege that must be exercised responsibly. That includes maintaining adequate automobile insurance.

For purposes of illustration, Customer X’s story follows. Some of the facts have been altered for anonymity. Customer X asked me about auto insurance for his 18-year-old daughter who has moved out of Customer X’s house. To be clear, the 18-year-old daughter is not a college student temporarily living away from home; the 18-year-old daughter has moved to another personal residence. While she does not own or lease a vehicle, she took and passed her driving test in Ohio last month using a car borrowed from a friend. She now has a standard Ohio driver license.

I am not an insurance company claims adjuster, and I am not an attorney. As an independent insurance agent, I do recognize actual and potential automobile liability insurance concerns with respect to the 18-year-old daughter. Insurance coverage is always subject to actual policy terms, conditions, and limits. The following remarks reflect my opinion on the facts, as described in the above illustration.

1. The primary concern is whether or not the18-year-old daughter is an uninsured driver. Even though she does not lease or own a vehicle, she is driving. Depending on the actual policy wording (which varies among different companies providing personal lines automobile liability insurance), there may be limited circumstances in which the 18-year-old daughter is covered under someone else’s personal automobile liability policy. That said, this illustration involves gray areas that are subject to policy interpretation of what is intended to be covered vs. what is not intended to be covered. For her own liability protection and to satisfy minimum liability requirements of Ohio law, the daughter should promptly purchase named non-owned auto coverage for herself.

2. The daughter may have signed a false statement when she obtained her Ohio driver license. Under Ohio’s Financial Responsibility Law, motorists are required to sign a separate form acknowledging financial responsibility upon application for a new or renewed driver license and when vehicle plates are purchased or renewed. The signed form lists a few options by which Ohio motorists may meet and maintain proof of financial responsibility. In my opinion, there are far too many circumstances under which it would be determined she does not meet those requirements, unless she has a named non-owned auto policy for herself. If at any time she leases or purchases a vehicle, she needs to purchase a standard automobile policy.

3. A general rule of thumb is that automobile liability insurance follows the driver (not the vehicle); physical damage and collision coverage follow the vehicle.

4. At Richey-Barrett Insurance, we strongly recommend all personal lines automobile insurance customers purchase limits that are much higher than Ohio’s financial responsibility requirements. However, in this illustration in which the 18-year-old daughter is known not to have any personal assets, we would offer her the option to purchase minimum liability limits under Ohio’s Financial Responsibility Law of $25,000./$50,000./$25,000.

5. Suppose the 18-year-old daughter moves back to Customer X’s home. While she resides in Customer X’s household, for peace of mind and to avoid coverage disputes, I recommend the daughter be added as a driver on Customer X’s automobile policy. However, if the daughter’s residency in Customer X’s household is in question, i.e. does she actually reside there, or does she come and go, coverage could be in question.

Richey-Barrett Insurance is a Trusted Choice Independent Insurance Agency for personal lines insurance. We are your one-stop destination for quality home and automobile insurance.