We decided to have a separate insurance for our teenage daughter once we buy her a car. Can we take her out already on our auto insurance policy here in Alaska? If she still uses our car and crashes it, will the insurer pay?

Adriel

Anchorage, AK

Once you have bought a new car and insurance for your daughter, it would still be a tough decision to make whether or not to exclude her on your auto insurance policy in Alaska if she is still using your car. You could opt to exclude her already in your auto insurance policy as you can decrease your premiums by doing this. This is going to be through a “named exclusion,” which means that your daughter will be excluded from protection under your auto insurance policy. However, doing this exclusion would require your daughter to have her own car and her own auto insurance policy.

Your daughter’s own car and auto insurance policy may not be a problem since you are already planning to do this. However, the problem may arise if your daughter still uses your car and gets into an accident. If she is already excluded in your auto insurance policy, your insurance company will not pay for any damages and injuries because she is an excluded driver. You may very well consult an insurance agent about this and check if it is allowed to have a named exclusion in your state.