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A special challenge facing these grandparents is that state and local governments, communities and schools may not formally recognize their role in raising their grandchildren. While acquiring legal custody and guardianship of a grandchild may be financially and emotionally burdensome, grandparents should be aware that many benefits, including healthcare, emergency care, financial assistance and social security benefits, require proof of a legal relationship before they will help. Proof typically includes court guardianship papers or adoption papers.


To help grandparents raising grandchildren better understand their insurance needs, the National Association of Insurance Commissioners offers tips and considerations regarding auto, home, health and life insurance.


Auto Insurance Considerations for Raising Grandchildren

  • You will likely assume additional chauffeuring responsibilities when caring for your grandchild and his/her friends. Consider increasing your liability insurance to make sure you are covered in case of an accident. You may also want to consider purchasing a Liability Umbrella Policy to protect your assets.

  • If your grandchild is old enough to drive your car, make sure to name him or her as a secondary driver on your policy. Be prepared to pay higher insurance rates as teens are considered a higher risk. You may want to recommend listing them as an insured since an insured has more rights under a typical auto policy than a listed driver. The drawback, however, is that a claim check may have all the insureds listed as a payee.

  • Many auto insurance companies offer lower insurance rates for teenage drivers who complete driving courses and maintain good grades. Check with an agent about the most cost-effective way to secure coverage.