Question: If a teen driver is not on the parent's policy, but drives their vehicle and gets two speeding tickets, how would the insurance company ever know about him or his tickets? Answer: The insurance company may not know about the teenage driver or his tickets now. In time it's likely that they will. And if there is an accident claim against the policy where the teen is at-fault, the result won't be pretty. Many car insurance companies verify important information when applying for an auto policy. There are a couple of different reports they can request to double-check that all household members are listed properly. One is the undisclosed drivers report (also known as driver discovery report). It reviews driver's license and other public records to hunt down any licensed household members that were not disclosed to the car insurance provider. Another report is for uncovering any hidden driver between the ages of 15 and 25 that parents may have left off of their car insurance policy. (See " 12 things your insurer knows without asking") This “youth discovery” report is just for young drivers because youthful drivers under 25 are particularly high-risk to car insurance companies and can significantly change the car insurance rates of the parents, thus insurers know some parents try to hide licensed teens. When undisclosed drivers are found out via a report, normally the policyholder is contacted with a notice to add the driver and pay the premium associated with that person, or the policy will be canceled. Or the policy may be straight-out canceled if the insurer finds the newly discovered driver to pose too much of a risk.
Why omitting a teen driver is a bad idea
It's possible that the insurance company involved won't run these reports and the parents could get away with not being charged a premium for the teen driver. Without the teen being listed as a driver, the insurer wouldn't know to check his driving record.