No. Children are not automatically covered by their parents’ car insurance policies. Coverage can get very complicated in certain cases, however.
If the child lives with the parents, it is certainly the case that the child is not covered automatically. As a matter of fact, no person living in the same household is covered automatically. They are automatically excluded.
If the child’s permanent residence is not the same as the parents, such as in the case of a divorce, the child may be covered if driving the parent’s car who they do not live with, but not covered if they drive the car of the parent with whom they reside.
In all cases, if the child has a car of his or her own, they are without question, not automatically covered.
Parents, in some cases, are responsible for the debts of minor children. If your child gets in a car accident, especially through negligence, the parents can be held liable for the debts and damage caused by your children. If they adults, above age 18, parents are not liable for their children’s debts.
This is a just a small sampling of possible scenarios and in no way intended as a definitive guide, but more of an outline of possible scenarios. In all cases, however, it is important that children are insured as if they were yourself and had your financial profile, to the same amount of coverage you are comfortable with for yourself. If you have a child and are concerned about coverage, you should consult your agent.