It can be both exciting and a bit nerve-racking when your child starts driving. This milestone is filled with pride, lots of talk about safe behavior, and a fair amount of apprehension.
With this newfound independence comes a wave of responsibility, though, not to mention some added costs like gas, car payments, regular maintenance, and (importantly) car insurance.
Car insurance not only reduces the financial risks of driving but is an essential consideration for child support agreements.
What’s the deal with child support and car insurance?
While the New Jersey Child Support Guidelines don’t cover the costs of purchasing a new vehicle or associated expenses, they do (or at least can) cover car insurance.
Managing the costs associated with driving can be an added stress for co-parents. If your child support agreement has been in place for a while, you might not have factored in car insurance. Or if you and your co-parent are recently separated or divorcing but need to pin down child support for your teenage child, you may be wondering what you need to consider.
Understanding how car insurance fits into child support can be confusing, but legal precedents can offer some clarity. One such precedent is the case of Fichter v. Fichter.
The impact of Fichter v. Fichter on child support agreements
Before 2015, in New Jersey, it was unclear whether or not standard child support determinations included car insurance for teenage drivers. The case of Fichter v. Fichter changed that.
This landmark case centered on a divorced couple with children. The parents had established in their Marital Settlement Agreement (MSA) that car insurance would be covered for their older child, who was of driving age at the time of negotiations. However, the MSA didn’t address car insurance for the younger daughter—and when she reached driving age, the mother (custodial parent) asserted that the father (non-custodial parent) should pay more support to cover their newly licensed daughter’s car insurance.
Ocean County Family Court Judge L.R. Jones had to consider recent amendments to the child support guidelines and ultimately ruled in favor of the mother, establishing a precedent in New Jersey family law.
The Court’s ruling meant that the courts could decide whether to allow car insurance as an add-on expense to the basic child support obligations. It also allows the court to use their discretion regarding how the expense will be shared between parents, relying on several factors to inform decisions:
- Income levels of the parents
- Total child support amount
- How the child will use the car
- Whether or not the child helps pay for their vehicle
Considering these factors, the court can decide how to amend a support agreement to include the new insurance costs.
What is covered and not covered under child support for car insurance
As you consider how car insurance might be addressed in your support agreement, it’s important to note that some associated costs may be covered while some may not. Several factors may influence the court’s decision.
For example, adding a young driver to an existing parent policy can significantly raise the premium, so the cost of increased coverage is possibly covered. This depends on the specific wording of your agreement and the judge’s discretion.
What’s covered
Typically, the court considers the practical and financial impacts of vehicle ownership and operation.
- Age of the child: While children under the driving age won’t directly benefit from car insurance coverage, future insurance needs may be considered.
- Parent driving habits: If the parent has a history of reckless driving, traffic fines, or accidents—and higher premiums as a result—the judge might weigh that when determining how much support, if any, to award.
- Availability of alternate transportation: If the child has access to reliable transportation such as a bus, subway line, or even a bicycle, the judge might be less likely to consider car insurance a necessary expense covered by child support.
- Financial contributions by the child, like from their own earned income, may be considered when determining how much of the insurance cost can be covered by child support.
What’s not covered
There are several factors that don’t play into whether child support covers car insurance, though. These include:
- General car ownership costs, such as auto loan payments, gasoline, maintenance, and repairs, are generally considered personal expenses of the parent who owns the car.
- Reckless driving costs, like fines or tickets, are the sole responsibility of the person who received the citation.
Who covers the child’s car insurance coverage?
For parents, who covers this expense is just as important as what is covered.
Fichter v. Fichter allows for insurance to be considered an additional support expense, but it doesn’t establish how the costs should be split between parents. There are two ways to determine who pays for the teenager’s insurance:
- Negotiation: Simply put, this means parents work it out between themselves. It can also involve using a mediator (a neutral third party) to guide the negotiation to an amicable solution.
- Court order: One parent can ask the court to establish or modify the child support agreement, which the court decides by considering various factors, such as the parents’ incomes, who owns the vehicle, and how the child will use the vehicle.
Remember, effective child support agreements made between parents involve setting clear goals for the child’s well-being. A Court’s Order will also take that into consideration, but may not be as flexible or family-specific as parents would like
While insurance might seem like a small detail, it’s part of the larger financial picture of how co-parents best meet their child’s driving needs. Working with an attorney can help you navigate these complexities and ensure that your child support agreement reflects your child’s needs and your family’s unique circumstances.
Understand your obligations by talking with a NJ child support lawyer
If you are looking to establish or renegotiate your child support to include car insurance in New Jersey, start by seeking counsel from an experienced family law attorney.
At Jacobs Berger, we do things a bit differently. We’ve built a skilled legal team to help destress the process of negotiating and renegotiating child support agreements, whether it’s to include your new teen driver’s car insurance or other evolving circumstances.
From mediation to court representation, we empower you and make your voice heard. Contact us today and schedule your strategic planning session.
