There’s no age at which you are required to purchase your own car insurance policy. As long as you're still living at home, you are eligible for coverage under your parents' policy. 

Typically, drivers need to find their own policies when they move out of their parents' house. There isn’t a defined age when this occurs, of course; it varies from person to person. 

Find out how to get off your parents’ policy, in addition to:

How long can you remain on your parents' car insurance?

You can remain on your parents' car insurance plan as long as you live in the same house. Even if you're away at college but still technically live in their home, you can stay on their policy. Additionally, drivers with cars stored in their family's garage should still be able to remain insured under their parents' names and plans.

Being on your parents' insurance plan has its perks, especially if you're a young or inexperienced driver. Teenage drivers have the highest average car insurance premiums out of any age group because they are new to driving. One way to mitigate the financial stress is for a child to sign onto their family's policy.

Once you move out of the house, however, insurance companies will likely no longer allow you to reap the benefits of staying insured with your parents. To remove yourself from their policy, contact your insurance provider to notify them of your decision.

Can you stay on your parents’ car insurance if you're married?

If you get married and you and your spouse live in your parents’ home, you both may be able to stay on their policy, as you two are considered members of the household. 

However, once you decide to move out of your parents’ home, you and your significant other will need to purchase your own auto insurance plan.

Can you stay on your parents’ car insurance after you move out?

No, you should expect to purchase your own car insurance policy once you move out. Most insurers require you to get your own insurance policy after you move out. Your parents’ policy usually only covers you while you’re considered a dependent (if you live at home or are away at college).

Can you be on your parents’ car insurance if the car is in your name?

No, you can’t be on your parents’ car insurance if the car is in your name. This varies from insurer to insurer, but for the most part, if you’re the sole owner of the vehicle, you need your own policy. Your parents can only add a car to their policy if they own it.

Can you stay on your parents’ car insurance if you go away to college?

Yes, you can stay on your parents’ car insurance if you go away to college. If you’re away at college but are still dependent on your parents and come home during school breaks, insurers will allow you to stay on your parents’ policy. Signing onto your family's policy is usually the cheaper option compared to buying your own policy, so it’s a good idea to stay on their plan while you’re in school.

Is a child able to drive their parents’ car without insurance?

If you’re included in their plan, you can drive your parents’ car without insurance of your own. However, once you’re not covered through their policy, you can’t drive your parents’ car without insurance. This is a liability for both you and them if you’re in an accident and don’t have adequate coverage. Get your own car insurance policy if you expect to be driving often.

Should you stay on your parents' policy?

If you’re able to stay on your parents’ car insurance policy, you should do so as long as you can. It can save you money to stay “bundled” on your parents’ policy. That’s especially true if you’re in your teen years, when car insurance is significantly more expensive. Remember, car insurance usually costs more than average until you reach 25 years old.

One exception: if your parents have a bad driving record with tickets and accidents, it may actually cost you more to share an insurance policy with them.

How can teens reduce rates for car insurance?

Teens can reduce their car insurance rates by getting rid of coverage they don’t need, comparing quotes from several companies and seeing if they qualify for any discounts.

Remove unnecessary coverage

How much coverage you purchase beyond your state’s minimum insurance requirement is a personal decision. It depends on your current needs, as well as what your provider requires. For example, as an employed young adult, you might not need as much personal injury protection. Your health insurance and disability insurance through your employer might already cover most of that.

However, it’s wise to buy more than the minimum uninsured or underinsured motorist coverage. This is because you want to be protected if you get into an accident with an uninsured motorist. It’s a good idea to explore your options. You should fully understand what type of coverage you’re buying and how much of it you’re getting. Get quotes and speak with insurance agents and brokers about your insurance needs.

Young adults buying auto insurance on their own for the first time should do a lot of research. It’s a complicated decision. There are many insurance companies, coverage types and factors that can affect your rates. You want to make sure you’re getting the best deal on the right coverage.

Shop around for the best rates

Car insurance is typically more expensive for younger drivers. This means the rates you’re quoted may be relatively high when purchasing your first policy. This is probably much higher than the rates you were charged when on your parents’ policy. While 16-year-olds have the most expensive premiums, your rates will likely remain high until your 25th birthday.

There are several reasons young adults typically pay more for insurance than drivers over the age of 25:

  • Younger drivers are more likely to have accidents and file insurance claims.
  • Most young drivers don’t have an established credit history.
  • Most young drivers aren’t married and can’t take advantage of marriage discounts.
  • Very few young drivers own their own home, so they can’t bundle their car insurance with homeowners insurance. Though, they could bundle with renters insurance.

Insurance companies take all of these factors into consideration when determining rates. That’s why young people usually have higher premiums than the average driver.

We recommend shopping around and comparing auto insurance quotes to find the best rates. Don't accept the first insurance quote you receive. You can save hundreds of dollars on your premium depending on the policy and the insurance company you choose.

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Auto insurance discounts

As we've established, auto insurance can be expensive for young drivers. Luckily, there are discounts you may qualify for. If you have a good driving record, you may qualify for a good driver discount. Depending on your provider, the qualifications and discount itself may vary. Also, if you've filed few or no claims over an extended period of time, you might qualify for a discount.

If you're a full-time student and have a good GPA, you may be eligible for a good student discount.

If you use your parents' insurance company when you get your own policy, they might give you an "all-in-the-family" discount. Different companies offer various discounts with different eligibility requirements, so be sure to ask your carrier about any discounts you might be eligible for. They can add up and significantly reduce your rates. It's also a good idea to compare quotes from multiple insurers. One of them could offer a discount the other doesn't.

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