Staying on your parent’s car insurance is determined by where you live and if you are a dependent. You cannot stay on your parent’s car insurance if you do not live at home. If you still live at home, then it is a requirement to stay on your parent’s car insurance, regardless of your age. The word “dependent” is relative to the insurance company, so not all cases of being a dependent keeps you on your parent’s insurance. Unlike health insurance, there is no maximum age that kicks you off of your parent’s insurance, and all household occupants are required to be on the auto insurance.
The auto insurance company determines your eligibility. Living outside of your parent’s home does not make you eligible for their car insurance. Being a dependent and driving their vehicle might make you eligible, however.
Can My Car Insurance Policy Be Separate From My Parents?
If you still live at home but have acquired your own vehicle, then your car insurance policy may need to be separate. This depends on the state as well as the insurance company. The vehicle should be in your name, and you should have your own license. Depending on the state, you may need to have insurance to maintain your license. Sharing a vehicle with your parents or still using their vehicle means that you still need to be on their insurance.
The transition to your own car insurance depends on the insurance company. Some do not care if your parents pay your premium after moving out, and some prefer an immediate switch. Some insurance companies will wait for you to get your own vehicle after moving out. They will usually want you to be on the insurance if you have a vehicle in your parent’s name, even outside of their home. The rules and guidelines are dependent on the company. As a general rule of thumb, if you own your own vehicle, have a license, and live outside of your parent’s home, it is time to get your own insurance policy.
What If I’m In College?
This type of transition to your own insurance policy confuses most people. The insurance company may still consider your parent’s home address to be yours. Most insurance companies do not care if you still list your parent’s home address as a primary residence. In this case, you can still be on their insurance policy. This is especially true if your vehicle is in their name, or if they let you borrow a vehicle to finish college in.
Owning your own vehicle has the potential to change these circumstances. The rules are truly relevant to the insurance company, so be sure to check with them under these special circumstances. In the eyes of insurance companies, college dorms are considered a short-term stay, and your parent’s address is more permanent.
This truly depends on you and your parent’s comfort in paying your own bills. They may encourage you to be independent while you are in college, and auto insurance is a first step towards achieving that independence. Your parents should be willing to work through this, taking your levels of comfort into consideration. Having a job and paying other bills lets them know whether or not you are ready. Getting your own insurance policy gives you a chance at a lower premium, especially since the price of premiums drop at age 25.