Many children opt to remain on their parents’ car insurance to save money, but at what point should they purchase their own policy?
Most often, children can stay on their parents’ policy if they remain living at the same address; however, there may be certain instances that would necessitate being removed from it.
Age
Children can remain on their parents’ car insurance policies indefinitely as long as the vehicle registered to their home and they remain living there. Once they move out and obtain their own place (with an accompanying car), it may be wise to get individual coverage; when this occurs will depend on factors such as age, financial stability and maturity level of each child. It’s crucial that any time when purchasing separate coverage is done as quickly as possible as this will help establish continuous coverage and ultimately lower auto insurance rates for years.
Car insurance does not have a set deadline for children leaving their parent’s policy; unlike health insurance where most are usually removed after turning 26. Many parents decide to keep their children on the family policy until they graduate college or find employment which allows them to live on their own, with sufficient savings and credit score to afford their own car and a competitive insurance quote for themselves.
Making the transition can also provide an ideal opportunity to discuss the importance of safe driving – something which young adults who are starting out are particularly at risk of doing without experience behind the wheel. Maintaining a clean driving record and avoiding accidents or traffic violations will keep their parent’s insurance premiums lower while potentially qualifying them for lower rates themselves.
Your best way of determining whether it’s time for your child to purchase their own auto insurance is comparing prices of individual policies – this can be done both online and in person, providing the information necessary for making an informed decision that’s right for your family. For assistance on getting great rates from reliable insurers contact Jack Stone Insurance Agency now.
Home Address
Most insurance companies allow children to remain on their policy as long as they reside at home, even if they go off to college and still use the family address on employment and tax forms, drive the family car while attending classes, or list their parent’s home as their primary address on drivers’ license applications. This provision also extends to any child who moves out yet still lists both sets of parents on their driver’s insurance policies as primary residents.
Liars who falsify information to avoid paying their insurance premiums are considered fraudulent and their claim could be denied; so it’s essential for young adults to know when it is time for them to transition off of their parents’ policies.
Once a child decides to move off their parents’ policy, they should notify their insurance provider. They may be eligible for reduced premiums by showing evidence that they no longer reside at their previous household address; this decision will be determined individually.
It is ultimately up to an adult child when and if they should obtain their own auto insurance policy. Insurance providers generally advise young drivers to acquire their own coverage when they reach 26 or purchase a car, as this is typically when discounts and benefits associated with being dependent upon a parent policy begin diminishing. Conversation with an independent agent to understand an insurer’s rules and standards regarding keeping children on policies will enable drivers to make an informed decision when selecting auto coverage plans for themselves. Contact Jack Stone Insurance Agency in Rock Hill, South Carolina to gain more insight into our comprehensive auto insurance offerings. We serve clients from Rock Hill and its surrounding communities and would be more than happy to discuss a policy or provide a quote online today – we look forward to hearing from you! We look forward to speaking with you!
Other Insurance
Once a child marries, they typically cannot remain on their parents’ car insurance policy; however, college-going children who visit home during breaks may remain covered under them. Insurance companies prefer listing every driver in the household on one policy to help assess risk and calculate premiums accordingly.
Once children move out on their own, it’s advisable to purchase car insurance under their own name to build coverage history and establish credit. Young adults should always take time to research different policies before making their choice.
Car ownership is essential to finding employment, attending school and taking care of daily errands, including exploring independence and freedom as young adults. Although purchasing a vehicle may be costly, there are various strategies available to save money on automobile insurance costs; it would be advisable to discuss them with either family or insurance agents to find suitable options available to them.
Parents may be able to exempt their child from auto insurance after they move out, depending on the insurance company and how the parents wish to proceed. It is wise for parents to have an honest discussion with their child about when he/she may wish to purchase separate coverage policies.
Dependent upon various factors, including age, driving record and financial circumstances of both parent and child, it may be cost-effective for them to remain on their parent’s policy until they graduate college and can afford their own policy.
Teenagers should obtain car insurance as soon as they obtain a license and can pay for it themselves, in order to establish an individual record and take advantage of discounts given to drivers with excellent credit and driving records. Furthermore, it would be wise for them to speak to an insurance professional to gain more of an understanding of how insurance works for teens and young adults.
Driving Record
Teenagers typically stay on their parents’ car insurance in Antioch, CA out of convenience and cost savings; however, if they’re driving responsibly and mature enough to handle their financial responsibilities on their own policy it could be time for them to secure one if that would help build an uninterrupted record that could ultimately get them a more favorable rate when applying independently later on.
Most auto insurance companies do not impose an age restriction on children being on their parent’s policy, with permanent home addresses matching up as the insured’s. Therefore, if your child attends college yet still lives at the family residence year-round it might make sense to include them on your policy; similarly if they go away to graduate school or start working elsewhere but still live nearby year-round.
However, if your child will only use the car during summer breaks and holidays, removing them from your policy might be wise. Doing so could save money on premiums while also protecting you in case he or she drives another vehicle that leaves them uninsured in case of an accident.
Young adults are typically considered higher risks by most insurance providers and thus their premiums tend to be more costly than those for older drivers. By shopping around for better rates, however, you might find something which helps your teen cut costs and save money.
Decisions on whether or not to remove a child from a family policy are ultimately subjective, depending on various factors including their driving record, maturity level and financial plans for their future. One way you can avoid high auto insurance rates is by encouraging your children to drive responsibly with clean records – doing this will lower their likelihood of being removed as they transition to adulthood and become less of a risk to insurers.