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Insuring a household together comes with steep discounts. But keeping a kid on your car insurance policy when they’re not eligible puts you at risk for a denied claim.
Get to know your options when it’s time to grow out of household car insurance — including when kids need to come off, and the caveats that come with specific insurers.
There’s no specific cutoff age for children to remain on their parents’ car insurance. If the child is considered a dependent, they can stay on a household insurance policy indefinitely.
However, each insurance company interprets “dependent” in slightly different ways. In general, the child needs to live at home either part or full time and drive a car owned by a parent. This means that a college student who comes home for breaks can stay on the policy, and so can any child living at home.
The main factor in determining if a child can be on an auto insurance policy comes down to who owns the title of the vehicle they’re driving. If the child owns the title of a vehicle outright, then most insurance companies want that vehicle insured independently of a family or household policy.
Yes. Unlike with occasional drivers, members of a household who intend to drive the family car must be insured under a single household policy. No matter the age of the child, they need to be listed as a driver of the vehicle to legally get behind its wheel.
We all know adding a teen driver to the car insurance policy is going to cause an increase in the premium. But there are ways to cut down on costs when the time comes.
Here are some discounts that might be available to you and your teenage driver:
Insurance rates tend to go down around age 25. Statistically, drivers from 25 to 65 are much less likely to get in an accident than drivers outside of this age range. Drivers under 21 and senior drivers tend to see higher premiums.
The specific age that your child’s insurance policy decreases varies by provider though. So be sure to confirm with your provider when you might see your child’s rates go down.
No. Many companies require a child to pick up their own insurance policy for cars they own outright, especially if a parent isn’t listed as an owner on the title.
But if your child still lives at home, some insurers could consider your kid’s car a household vehicle and allow it to be covered under a larger umbrella policy. Confirm with your insurer how it handles this specific situation.
In general, if parents pay for a child’s housing, food, college expenses or any other costs of living while they’re away, an insurance provider considers them a member of their parents’ household.
But it depends on how the child lists their permanent residence:
To save money on your policy, look into whether your provider offers occasional driver discounts if your college student doesn’t drive while at school.
Taking the car to college might seem like an obvious step in heading off to school, but there are several perks to not having a car on campus. Consider these benefits:
No. Most car insurance companies consider marriage a clear break from any parents. This kind of financial independence will likely require your child to start a new insurance policy with their spouse, especially if a move out of the family home comes with the marriage.
If your child still lives at home, you might find exceptions. If they’re still a member of the household and frequently drive a vehicle owned by a parent, they might still need to be listed as a driver on your household policy. This doesn’t mean they won’t also have to purchase their own policy, so confirm with your insurer how it handles this situation.
How to handle your teen’s car insurance will vary by your specific situation and your insurance provider’s rules. But here are some general guidelines:
If you’re looking to add one or more teen drivers to your family’s car insurance policy, you’ll save the most by keeping any cars in your name. Taking out an insurance policy for your car and adding your teen as a driver generally costs a lot less than adding a car in a teen’s name.
If your teen has their own car, try to have them listed as primary driver on the cheapest car to save money. And if they’ll just be borrowing your car from time to time, make sure your insurer lists them as a secondary driver.
If you’ve got a teen driver in the house who will be sharing the family car, there are a few things to consider when making the big purchase of a new car. Is the car safe? Is it cheap to insure?
Small cars
Midsize cars
SUVs
Minivans
No. Naming another insured driver as the primary driver, also known as fronting, can lead to denied claims down the line.
And even if you try it, your insurance company is going to have questions about why you’re driving multiple cars and other insured drivers aren’t driving at all. As a general rule, insurers expect one car per insured driver in multicar households.
At the end of the day, several factors affect whether a child can remain on a parent’s car insurance policy. Ultimately, every insurance company has its own policies, so check with yours to learn how to keep them on your policy. And compare your car insurance coverage to see if you’re getting the best deal you’re eligible for.
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