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4. If my teen isn't on my insurance and crashes the car, is the damage covered?

Your car may be covered in the event your uninsured teen crashes it, but expect some ramifications. For starters, your rates could go up. An insurer may also decline to renew your coverage in the future if you hadn't originally reported your teenager as a driver.

But if your teen was specifically excluded from the policy, your insurer isn't obligated to pay anything -- meaning you could be financially responsible for fixing your damaged vehicle.

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