As a young adult you’ve probably started becoming more independent and paying for your own bills like rent, car payments, phone bill, and utilities. Well what about your car insurance? It is likely that since you’ve gotten a car you have been covered by your parents car insurance, so when should you get your own?
This answer depends on the situation. While there are some circumstances where it would make more sense for your to stay on your parents’ auto insurance policy, there are other instances in which it makes sense to break off and get your own policy instead. There also might be some cases where you don’t have a choice and will be required to get your own policy altogether. So knowing when it’s best to stay on with your parents versus going out on your own is essential to selecting the right coverage at this stage of your life.
When you can be on your parent’s car insurance policy
You co-own the car with your parent
If both you and your parent co-own the vehicle, then most insurance carriers allow you to stay on your parents policy.
Your parents own the car and you live with them
If your parents are the owners of your car and you live at home with them, you can stay on their policy. This also applies if you get married and are living at home.
You are a college student and drive your parents car when you are home
If you only drive your car when you are home from college visiting your family, then you can stay on your parents’ policy as a regular driver. Depending on how far away you are from your home when living on campus, your parents may even earn a discount to reduce car insurance costs.
You move out but you live at a property your parents rent or own
You can stay on your parent’s policy even if you move out but you move to a property your parents rent or own.
When you cannot be on your parent’s auto insurance
On the other hand, there are some circumstances where you have to obtain your own policy, even if you are a younger driver. And remember, the best practice is to be truthful with the insurance company about where you live and how much you drive, otherwise you face the risk of the carrier denying your claims or canceling the policy.
When you own your car
If your car title is only in your name, then you have to obtain your own insurance policy and can not stay on your parent’s policy. This applies whether you live at home with your parents, you are away at school part of the time or you do not live with them at all.
If you do not live with your parents but they own your car
This is actually a situation where it depends on your insurance policy. Each insurance company has its own definition of a dependent child. However your carrier defines this determines if you can stay on your parent’s policy if you don’t live with them. The best practice is to verify with the carrier.
You are on your own financially
This is more of a judgment call, and not necessarily a determination of the insurance company. But if you are on your own financially, renting your own apartment or buying your own home, then it is wise to consider getting your own policy.
To learn more about getting the right coverage for your needs, give the Nickerson Insurance Agency a call today!