Underage drivers and motor vehicle insurance

There is no doubt that many people still have problems with comprehensive car insurance. Many believe that once a vehicle is fully insured it means that claims must be paid regardless of what happens to that vehicle, its occupants or third parties at any time.

Teenagers on the road

There is a growing trend in how some parents consciously or unconsciously allow their underage children to drive.

A parent parks her car in the garage and asks her teenage child (14-17) to wash it. No matter how adventurous the case may have been, these teenagers learn to move the vehicles themselves, often drive them out on their parents’ blind side and then the ‘expected’ happens: an accident!

I often encounter people who still assume that everyone can drive their vehicle once it has comprehensive insurance. It’s worth noting that technically it’s not the vehicle that’s insured, it’s the person driving it! Confusing, I think, but this only applies in the case of a claim!

The following scenario could serve as case studies to highlight some of the events that a comprehensive auto insurance policy will “scowl at.” Although these exclusions are often applied, they happen to the chagrin of some policyholders.

Scenario

Mr Abeka, whose family lives in Accra, works in Cape Coast. He visits his family once every two weeks. His wife doesn’t drive. He has a 14-year-old JHS son, Ebo. There are two sedans in his garage. His wife, Mrs. Abeka, hardly drives and would not touch any of the vehicles even if she really had to. Ebo washes the two cars at least once a week. Mrs. Abeka sends Ebo a message last Saturday and he has to go by taxi.

Ebo, in an attempt to show off his parents’ wealth in addition to his own driving skills, secretly drives one of the vehicles and manages to drive at least 8 km round trip.

His mother appears to have ‘encouraged’ Ebo based on the fact that her son can drive a car!

Schools on break

Schools are going on break and it’s time for students to show off how rich their parents are. Ebo, whose self-confidence has increased since his previous ‘successful’ trip, sneaks out in the second car with the mother, without really worrying about his own safety!

This time he is not lucky. He comes across two young siblings, killing one instantly and severely maiming the other!

Driving without a driver’s license

In the areas of insurance and common law, it can be disputed that a driver of a vehicle without a valid driver’s license poses a moral hazard and is more likely to cause an accident than someone with a driver’s license, other things being equal. In our typical traditional setting, the devil would be forced to take the blame here!

Technically, the immediate cause of the accident remained largely inexperience and technical incompetence. Allowing an underage child to drive a vehicle without a permit can be a criminal offense and the law does not tolerate this.

Insurance claims

The image above clearly shows that a report ‘must’ be filed after the accident, after all the vehicle was comprehensively insured!

The fact that he was a minor without a driver’s license would make it difficult to make an insurance claim!

Can the insurance company be held liable?

Motor insurance is insurance purchased for cars, trucks and other road vehicles, the primary purpose of which is to provide protection against physical damage resulting from road traffic accidents and against liabilities that may arise from them.

It is worth noting that car insurance, like any other insurance, also has exclusions.

The things that aren’t covered

Below are some of the most important things the insured should know about particularly comprehensive insurance as it relates to this scenario.

– Any accident, injury, loss or damage while a vehicle insured under this policy is driven by or in the care of a person with the intent to be driven who:

• It is not described in the section of your motor insurance certificate entitled “Authorized Drivers” (P), or

• do not have a valid and current driver’s license to drive your vehicle, or

• does not meet the conditions of the driver’s license, or does not have the correct driver’s license for the type of vehicle. For example, a driver with a B driving license is not allowed to drive a 4×4 vehicle!

The insurance will not pay for any accident, injury, loss or damage while a vehicle insured under this policy is used for purposes other than those described in the ‘Description of Use’ section of the motor insurance certificate, or in the exclusion of motor insurance. This is clearly stated in the policy document.

– Loss or destruction of, or damage to, property or associated losses or costs, or any other loss.

Insurance laws indeed determine which exclusions can be offered to drivers. In general, the auto insurance exclusion types that consumers can include in their policy include the following available options:

Options available

1. Driver Exclusions: This exclusion means that a specific person who has access to your motor vehicle is not covered under your auto insurance policy.

2. Bodily Injury: Some insurance companies will not provide compensation if you are involved in a car accident while using your car or truck to transport passengers or equipment. (This is why many Ghanaian motorists, especially those who have lived in the Western world, are accused of ‘not giving people lifts because they are bad’).

3. Employees: If you are a business owner, you may have an exclusion in your auto insurance policy that states that the insurance company will not reimburse you for damages to an employee driving your motor vehicle.

Advice to members of the motor insurance public

Car insurance accidents that you cause on purpose are generally considered exclusions. Make sure you read your car insurance policy carefully. This will give you insight into the exclusions that apply to your coverage.

If you buy car insurance, ask the insurance agents or agents to tell you about the general exclusions the company lists in the policies. Also ask the officer or agent about additional exclusions that you can ask the insurance company to include in your specific policy.

From the above scenario, we must understand that a minor is a minor and is not allowed to drive a car until he reaches the legal age required to qualify for a valid driver’s license.

This is an exclusion that cannot be bought back, as is the case when purchasing other excesses! This must be a guiding principle for parents as we welcome our children back from school!