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Can You Be on Your Parents’ Car Insurance If You Don’t Live With Them?

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Getting a driver’s license or your first car is a very exciting time. For many teenagers, getting a license is their first step towards independence and adulthood. With more freedom, however, comes more responsibilities. In the case of driving, getting a driver’s license comes with more financial responsibilities. Teen drivers pay some of the highest insurance rates of any driver in the United States. The good news, though, is that insurance companies allow teens to be added to their parent or guardian’s insurance policy.

In most places, state laws mandate that all drivers carry a minimum amount of liability coverage. These laws are in place to protect all drivers on the road. Your liability insurance policy protects other divers and their cars if you cause an accident. Liability coverage will pay bodily injury and property damage claims resulting from an accident where you are found at fault. To protect your own car, no matter who is at fault, you will need collision and comprehensive coverage.

Average liability coverage for a teen driver is around $4,400 per year, while a full coverage policy for a teen could be close to $9,800 per year. Compared to the rates for an average adult, teen drivers pay significantly more for car insurance. The main reason for this is because insurance companies consider a teen’s age and inexperience as high-risk factors for an accident. To help mitigate their risks, insurers charge most young people under the age of 25 inflated premiums. As a result, many young drivers choose to stay on their parent’s car insurance policy as long as they can. If you are on your parents’ policy, there are a few things to consider.

How long can you stay on your parent’s policy?

Can You Be on Your Parents' Car Insurance If You Don't Live With Them

The good news is that there is no age limit for a shared auto insurance policy. Unlike health insurance that sets age limits at 26, auto insurers don’t have an age requirement. You can stay on your parent’s policy for as long as you need. Eventually, you will move out and become more financially independent, and then it will make more sense for you to have your own policy. Additionally, as most states have laws regarding insurance and car ownership, you might be required to purchase your own policy when you get a car that is in your own name.

Since there is no age limit, can you be on your parents car insurance if you don’t live with them? The answer to this can be a little complicated. In general, you must have your own policy if you have a different address and don’t live with your parents. There is typically an exception for college students who live on campus and are supported by their parents. However, once you move out on your own, insurers usually want you to have your own insurance as you have care, custody, and control of a vehicle.

What are the benefits of staying on your parents’ plan?

car insurance

As discussed, younger drivers pay much more for auto insurance than the average adult. However, while a policy may cost you $8,000 a year, your parents may only see an increase of $1,500 a year by adding you to their policy. Your insurance will be cheaper with your parents. Additionally, you may be able to lower your parents’ policy premium with a good driving record and good student discounts.

With teen and young adult drivers seeing some of the highest insurance premiums, staying on your parents’ insurance will be beneficial for as long as possible. Until you move out of their home or become financially independent, you will have greater flexibility and cheaper rates on your parents’ insurance policy.


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