How long should children stay on their parents’ car insurance?
The cost of car insurance isn’t a concern many teenagers have to think about. That is, until they think about moving out. Many families keep their teenage driver on the parents’ auto insurance policy until college graduation, assuming that the child will find employment and live away from home. If your child is thinking about moving out, should he/she purchase their own auto insurance>
There is no mandated cut-off age for kids to get off their parents’ car insurance. That means, if a child is living in their parents’ home into adulthood, he/she can stay on their coverage. However, keep in mind that car insurance is sold per household. Everyone in the household is insured and can drive the cars in the home. Once a child moves out, they are no longer part of their parents’ household, and will need to get their own insurance.
However, there are caveats. If you are considered a dependent, you can stay on your parents’ policy. Insurers will have different definitions of what a dependent is, but usually it is:
- If you attend college and live at home, or at least live there part-time
- If you drive a car that your parent owns and insures
In the case that you still live at home and buy a car of your own (i.e. are considered a vehicle owner), then you’ll probably need to purchase your own car insurance.
Young adult drivers should start to build their positive credit rating as soon as they can. Automobile insurers consider an applicant’s credit score among several other factors in their underwriting. Assuming your child has a clean driving record and a solid credit history so far, there is a good chance of a competitive premium.
The team at McCarty Insurance are industry experts who are here to help. We ensure that you understand your coverage so that you can feel confident about your protection in Fresno, California.