Once you move out of the house, you’re off the insurance policy.
You can stay on your parents’ health insurance plan until you are 25 years old, but how long can you stay on your parents’ car insurance policy? The short answer is: as long as you live with them. However, the short answer doesn’t explain the full picture.
This article will describe how auto insurance coverage works and offer advice on insurance for teens and young adults.
If you’re ready to get off your parents’ policy and start your own auto insurance policy, the most important thing you can do is compare your options. Car insurance is a major purchase, and buying insurance isn’t always straightforward. We’ll make a few recommendations for best car insurance companies below.
In this article:
- Overview About Staying On Your Parents’ Car Insurance Policy
- Pros And Cons Of Staying On Your Parents’ Car Insurance
- How To Reduce Insurance Rates For Teens On Their Parents' Car Insurance
- Our Recommendations For Car Insurance
- FAQ About Staying On Your Parents' Car Insurance
Overview About Staying On Your Parents’ Car Insurance Policy
You don’t “stay on” your parent’s car insurance the same way you “stay on” their health insurance. Car insurance coverage is tied to vehicles and not individuals. Every policy has a named policyholder, but accidents are usually covered no matter who is driving.
Generally, everyone who drives a car with the owner’s permission is covered by the auto insurance policy registered to that vehicle. Insurance companies often require notification about who is living in the same household as the policyholder. All of these people are potential drivers. A child of driving age that is living at home is sure to be included in the policy, as are spouses and any other dependents.
You can stay on your parents’ auto insurance plan indefinitely. There is no age cutoff. If you have your own car, that vehicle needs its own insurance policy or needs to be listed on your parents’ policy. The policyholder for any particular vehicle usually needs to be the person named on the title. This doesn’t matter if you are 16 and living at home or 32 and on your own.
College students who live at home during the summers usually remain on their parents’ insurance policies. Kids are only ever “off” their parents’ policies after they leave the nest for good or choose to start their own policy.
You may be able to exclude a child from your policy (and reduce your premium), by contacting your auto insurance company and assuring them that the child no longer lives with you. To do so, you might need to prove that your child has their own primary residence depending on their age.
Pros And Cons Of Staying On Your Parents’ Car Insurance
Insurance will cover any accidents that may occur while the child is driving.
Premiums are higher when young drivers are named on policies.
|It is usually cheaper to have a child covered under a parent’s policy than it is to purchase the child an individual policy.|
Individual policies for drivers under 25 years old can be very pricey. This is because these relatively new drivers looking for car insurance haven’t yet established a driving record. If you can, staying on your parents’ car insurance policy will help you save money.
Once a child has their own vehicle, they may need to have their own auto insurance policy.
How To Reduce Insurance Rates For Teens On Their Parents' Car Insurance
Teens are expensive to insure, especially teen boys. This is because teens, as a population, more often engage in reckless driving behavior. While they have faster reflexes than their adult counterparts, teens are less experienced and generally have poorer risk-assessment skills.
There are ways to reduce your teen's car insurance costs, and certain providers offer more discount options than others. If you have State Farm auto insurance, there’s a program called Steer ClearⓇ that teaches teens safe driving practices and monitors driving behavior. It is available for drivers under 25 and will reduce insurance premiums for those that use it. Read more in our State Farm insurance review.
There are some discounts commonly available to teen drivers, like good student discounts, though availability varies among states and providers. Ask your provider if any of these options are available to you.
Good student discount
Students with good grades may be eligible for discounts. Geico offers premium reductions for students with a B average or higher.
Student away at school discount
Your car insurance company may offer a discount if your child is attending college. This discount applies during the months that your child lives away and doesn’t have access to your car.
Safe driving discount
Many providers have apps that monitor your driving and reduce rates for driving safely.
Low mileage discount
If your teen doesn’t drive often (say just to school and back), they may be eligible for a low mileage discount.
Ask your car insurance provider what other options you have for reducing premiums for teen drivers.
Our Recommendations For Car Insurance
If you’ve decided you need to purchase your own insurance as a young driver, the best first step is to compare rates. Car insurance prices depend on many factors including your age and driving history, so the best company for one person isn’t the best company for everyone. Get started by using our quote comparison tool or calling (855) 518-0148.
Geico Insurance: Best Overall
We recommend Geico auto insurance as a top choice for teenage drivers in our Geico review. Geico has a long list of discounts that can apply to teens, including:
- Good student discount
- Good driver discount
- Air bag discount
- Seat belt use discount
- Defensive driving discount
- Membership discount
- Alumni discount
- DriveEasy app
Geico isn’t just inexpensive – it’s a full service provider offering many coverage options. You can purchase add-ons like roadside assistance and rental car reimbursement. Additionally, AM Best gives Geico a financial strength rating of A+, the highest possible score, so you know Geico can pay out on claims. We rate Geico at 4.5 out of 5.0 stars and recommend it for anyone, not just teens.
USAA Insurance: Best For Military
In our USAA insurance review, we found this provider to also be a good choice for teenagers that qualify. The insurer offers discounts such as:
- Good student discount
- Multi-vehicle discount
- Safe driving discount
- Driver training discount
USAA is only available to military service members and their families, so it may not be an option for you. If it is, we highly recommend it, as USAA has some of the lowest premiums and best customer satisfaction reviews. It’s the only provider that we give 5.0 stars. J.D. Power also rates USAA highly for claims servicing, and AM Best gives USAA an A++ for financial strength.
FAQ About Staying On Your Parents' Car Insurance
How long can you stay on your parents' car insurance?
You can stay on your parents' car insurance policy indefinitely, as long as you live at the same address and the car title remains in your parents' name. If you move out or choose to no longer be included on your parents' car insurance policy, simply notify your insurance company.
Can I stay on my parents’ car insurance if I move out?
You are usually only covered by your parents’ car insurance while you live with them. Most insurance companies will make an exception for college students that live with their parents during the summer months only.
Can a married child stay on their parents’ car insurance?
Car insurance usually extends to members of a single household. So long as you are still living with your parents, you will be covered by the insurance policy on their vehicles. If you have your own vehicle in your own name, you may need to purchase your own auto insurance policy.
How do I get off my parents’ car insurance?
You are automatically added to your parents’ insurance policy if you live with them. If you move out, notify your insurance company so you can be removed from the policy.
At what age do you have to get your own car insurance?
There is no age limit cutoff for being covered under someone else’s car insurance policy. It is not like healthcare, where you are covered by your parents’ policy until you are 25 years old. As long as you live with your parents, you will be included on their car insurance as a cohabitant driver.