Divorced Parents and Teen Drivers - The Car Insurance Conundrum

Its a common issue; you have children, you get divorced, your children grow, and get their driver's license.  Then what?  As a parent, you must figure out how to handle the cost of insuring your newly minted teen driver.  You might be getting child support, but shouldn't your ex contribute extra to this new huge expense?  Recently, a court in Ocean County was called upon to decide whether the cost of car insurance for teenagers was included in the basic child support guidelines.  If it was, then the supporting parent was, arguably, not required to contribute extra to this new cost.  If it was not included, then perhaps the court could determine that the supporting parent would have to kick in a little extra to offset this expense.  I won't bore you with the lengthy technical analysis that the court went through to reach its decision; but here are a few important concepts noted by the court:  

(1)  Reasonable motor vehicle insurance coverage is highly critical to protect a teenage driver's health, safety and welfare; and reasonable coverage is equally significant for protection of the public at large from an inexperienced teenaged driver. 

(2)  Car insurance is mandatory in New Jersey.

(3)  Reasonable coverage for a new driver is practically unaffordable and unattainable by the custodial parent without additional contribution from both parents.

(4)  The cost of insurance is usually sudden and dramatic and can economically destabilize a conservative family budget.  

Based on these comments, it is easy to predict the court's decision; that consideration of these factors may logically constitute good cause for deviation from the basic child support guidelines in order to provide reasonable motor vehicle insurance coverage for protection of the child and the public at large.  In layman's terms, the child support figure can be modified by the Court to account for the expense associated with providing car insurance for a new driver. 

Still, how does one afford this expense?  There are options.  A recent Forbes article, Car Insurance For Divorced Parents of Teen Drivers outlined some of the legal requirements as well as options to consider for potential cost savings.   If you are the parent who pays support, it is prudent to mentally prepare yourself for the reality that your support obligation will likely increase when your child obtains his or her driver's license.  If you are the recipient of support, start shopping around for reasonable coverage and be prepared to address the cost with your ex.  If you cannot reach an agreement, contact an attorney for consideration of a motion to modify support. 

For more information and to schedule a consultation, I can be reached at 609-601-6600.  For more interesting posts and links, Like my professional Facebook page.

Best,  Stephanie