Why omitting a teen driver is a bad ideaIt'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.
However, the parents are taking a big risk by trying to avoid adding the teen to the policy and just hoping they won't get caught.See, states allow insurance companies to mandate policyholders divulge all licensed household drivers so that the insurers can accurately calculate its risk and then the premium for the household. If the parents fail to inform their car insurance company about their teenage son, this could be construed as material misrepresentation, a form of insurance fraud. Misrepresenting who drives your cars or who lives in your household can result in the insurance company being able to deny claims and/or cancel the policy. If the teenage son in this scenario is in an at-fault accident, the insurance company would receive a claim for a driver it wasn't even aware existed. States laws and insurance company guidelines would then dictate if the insurance company would have to cover the accident damages or not. If the accident is covered, then the car insurance company will usually require the parents not only place the teen on the policy now but also require them to pay the back premiums they should've been paid since the teen received his license. If the insurer is able to deny the claim and cancel the policy due to misrepresentation, then the parents and teen will be left to pay personally for the auto accident - and need to look for a new insurance policy. It's harder to find reasonable rates when misrepresentation is on file as the reason you lost your last auto policy. The parents in this situation need to come clean with their insurer. Their rates will increase significantly, due to having a young driver and then the surcharge for his traffic tickets. In time, the son will get older, and his tickets will drop off his driving record. In the meantime it's important for the parents to take the time to shop around and find the cheapest car insurance rates possible. Compare car insurance prices and search for discounts (such as the good student discount) until the best-priced policy is found.