Your teen might be a great driver but it only takes one uninsured motorist to turn their world upside down.
Teen drivers are the most at-risk group on the road. In California, drivers ages 18 to 24 make up just over 10% of the population but nearly 30% of all injuries in vehicle crashes. Nationwide, teens are involved in more crashes per mile than any other age group.
Why UM/UIM Coverage Matters
Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage can be critical if your teen is in a serious crash. UM covers injuries caused by a driver with no insurance. UIM helps when the at-fault driver’s policy isn’t enough to cover the damages. These coverages help bridge the gap, especially when medical bills start piling up.
But here’s the catch: your teen may not be covered in every situation. If they’re not listed on your policy, away at school, or driving someone else’s car, your insurance might not apply. A quick policy review now can help avoid costly surprises later.
Quick Takeaways for Parents:
- Your teen may not be covered in all situations — even under your policy.
- UM/UIM coverage protects against uninsured and underinsured drivers.
- Review your policy now to avoid gaps before an accident happens.
Why Teen Drivers Are High-Risk
Teen drivers face some of the highest crash rates in the country. According to the CDC, motor vehicle crashes are the second leading cause of death for U.S. teens. Inexperience behind the wheel, combined with risky behaviors, makes this age group far more vulnerable than older, more experienced drivers.
In California, the numbers are just as alarming. Data from the California Department of Public Health shows that in 2021, drivers aged 18 to 24 made up only 10.3% of the population but were involved in nearly 30% of all injury-related crashes involving vehicle occupants. That means a disproportionate number of young drivers are getting hurt on the road.
Several key factors contribute to this elevated risk:
- Inexperience: Teens are still learning how to respond to unexpected situations and make split-second decisions while driving.
- Distractions: Phones, music, and even passengers can divert their attention from the road.
- Night Driving: Limited visibility and fatigue can make night driving particularly dangerous for teens.
- Risky Behaviors: Speeding and not wearing seat belts are more common among teen drivers.
Because teen drivers are statistically more likely to be involved in a crash, having strong UM/UIM coverage is critical. If your teen is hit by someone without insurance or without enough insurance, your family could face steep medical bills, lost income, and long-term recovery costs.
UM/UIM coverage helps bridge that gap and offers much-needed financial protection during what can be a physically and emotionally overwhelming time.
Recommended Reading: California Teen Driving Laws
What Is UM/UIM Insurance and How Does It Work?
Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage are types of car insurance that protect you when the at-fault driver can’t pay for your damages.
- UM coverage applies when the other driver has no insurance at all. If your teen is hit by an uninsured driver, UM helps cover medical bills, lost wages, and other accident-related costs.
- UIM coverage steps in when the other driver has insurance, but not enough to cover the full extent of the damage. This is especially important in serious crashes where injuries and expenses go beyond the limits of a basic policy.
Together, UM and UIM help fill the gap so your teen isn’t left unprotected after a crash caused by someone else.
Are Teen Drivers Covered by Their Parents’ Policy?
Many parents assume their teen is automatically covered under the family car insurance policy but that’s not always the case. Whether your teen is protected depends on several key factors, including where they live, whose car they’re driving, and how your policy is written.
When They Are Covered:
- They’re listed on the policy as a driver and using a vehicle included in the policy.
- They live at home or are still legally considered a dependent, even if they’re away at school temporarily.
- They’re using a covered vehicle with permission.
When They May Not Be Covered:
- They’ve moved out permanently and are no longer considered a dependent.
- They’ve bought their own car, which would require a separate insurance policy.
- They borrow a car not listed on your family policy—especially if it’s a friend’s or roommate’s vehicle.
Gray Areas to Watch:
- College students away from home can fall into a coverage gap, especially if they leave the state or use a car that’s not on your policy.
- Teens driving a friend’s car may not be covered under either policy if neither includes permissive use or non-owner coverage.
It’s important to review your policy and talk to your insurer to make sure your teen is fully protected in all the situations they’re likely to encounter. Coverage gaps can be costly—especially if a crash involves an uninsured or underinsured driver.
Why Minimum Coverage Isn’t Enough
California’s minimum car insurance requirements may meet the legal standard—but they often fall far short in real-life accidents. The current minimum liability limits are just $30,000 for injury to one person and $60,000 per accident. That might sound like a lot, but it barely scratches the surface when serious injuries are involved.
Even a “minor” crash can lead to:
- Emergency room visits
- Ongoing physical therapy or rehab
- Time off work or school
- Prescription medications
- Long-term medical care
It’s not uncommon for these expenses to add up to tens of thousands of dollars—or more.
That’s where UM/UIM coverage becomes essential. If your teen is hit by a driver with only the state minimum coverage (or no insurance at all), your family could be left paying the difference. UM/UIM helps cover those gaps so your teen doesn’t have to carry the financial burden of someone else’s poor insurance choices.
Special Scenarios Parents Should Plan For
When it comes to teen drivers, accidents don’t always happen in the family car—or even while they’re behind the wheel. Parents need to think through a variety of scenarios to make sure their teen is covered in every situation. Below are a few common (and often overlooked) ones.
If your teen is driving and gets hit by an uninsured driver:
If the at-fault driver has no insurance, your UM coverage may help pay for your teen’s medical bills, pain and suffering, and lost wages but only if your policy includes them as a covered driver. Make sure your teen is listed on the policy and driving a vehicle included in your coverage.
If your teen is a pedestrian or cyclist hit by an uninsured motorist:
UM coverage can also apply when your teen is not in a vehicle. If they’re walking or riding a bike and get hit by an uninsured driver, your policy may still offer protection. This is especially important in cities where teens walk or bike to school, work, or activities.
If your teen is a passenger in a friend’s car involved in a crash:
If your teen is injured while riding in someone else’s vehicle, their medical expenses may be covered by the friend’s insurance. But if the friend has no coverage or not enough, your own UM/UIM coverage may step in to fill the gap. Without it, you could be left paying out of pocket for injuries that weren’t your teen’s fault.
If your teen lends the family car to someone else, are you still covered?
If someone else drives your car with your teen’s permission and causes a crash, liability generally follows the vehicle. That means your policy could still be on the hook. However, coverage can vary based on who’s listed as a driver and whether the policy allows permissive use. It’s a good idea to check with your insurer before letting your teen loan out the car.
Each of these scenarios highlights how easily gaps in coverage can happen. Taking a few minutes to review your auto policy—and making sure UM/UIM coverage is in place can protect your family from financial shock when the unexpected happens.
What Parents Can Do Right Now
You don’t have to wait until there’s an accident to take action. A few simple steps today can go a long way in protecting your teen on the road:
- Review your current policy: Make sure your teen is listed as a driver and confirm that the vehicle they use is included on the policy.
- Check your UM/UIM coverage limits: Are they high enough to cover serious injuries and long-term care if needed? Many families find that the state minimums aren’t nearly enough.
- Request key documents from your insurance provider:
- Policy declarations page – This shows who’s covered, which vehicles are included, and the exact coverage limits.
- Umbrella coverage options – An umbrella policy can provide additional protection beyond your auto policy’s limits, especially in serious accidents.
- Policy declarations page – This shows who’s covered, which vehicles are included, and the exact coverage limits.
- Have a conversation with your teen: Make sure they understand how insurance works, what UM/UIM coverage means, and what steps to take if they’re ever in a crash whether they’re the driver, a passenger, or a pedestrian.
These steps can help you avoid costly surprises and give both you and your teen more peace of mind.
You can’t control how careful other drivers are but you can take steps to protect your teen from the consequences of someone else’s mistakes.
Uninsured and underinsured motorist coverage is one of the most important tools you have. It’s easy to add, and offers vital financial protection when the unexpected happens. Whether your teen is behind the wheel, riding with friends, or walking home from school, UM/UIM coverage helps ensure your family isn’t left picking up the pieces after someone else’s bad decision.
Has Your Teen Been the Victim in a Recent Car Crash?
If your teen was injured in a collision, whether or not it involved an uninsured or underinsured driver, our team at El Dabe Ritter Trial Lawyers is here to help. We offer free case evaluations to review your options and make sure your family gets the protection and compensation you deserve.
Contact us today to speak with an experienced personal injury attorney who understands how to handle teen driver cases and insurance disputes.
Disclaimer: The information provided in this blog post is not intended as legal advice and should not be relied upon as such. You should consult with an experienced attorney for advice on your specific situation.
