When do kids need to get their own auto insurance?
Most parents add their teens to their own auto insurance policy when they first learn to drive. This is because this is usually the cheapest and most convenient insurance option. However, many parents wonder how long they can continue to cover their children. Here’s what to know about the circumstances dictating if your kids need to get their own auto insurance.
- Residency Requirements
Where you live is the most important factor for auto insurance companies who cover multiple drivers on the same policy. Usually, car insurers will allow parents and children to remain on the same policy as long as they all reside at the same address. This means that many insurance companies will let children stay on their parents’ policy indefinitely, as long as they still live at home.
- Moving Out
Once you officially move out of your parents’ home, you are legally required to secure your own auto insurance policy. Prior to your move, make sure you secure your own policy and inform your parents’ auto insurance provider so they can remove you from their coverage. Please note that attempting to remain on your parents’ policy by lying about your address is an act of fraud. Should the insurance company find out about this, then you risk being denied claims coverage and having the policy canceled altogether. So, if you do not want to affect your parents’ coverage, then be upfront about your changing living situation.
There are some exceptions to the residency rule. For instance, if you are leaving home to attend college, then you can still remain on your parents’ policy. This is because your parents’ home is still probably your primary residence. The other exception to this rule is children of divorced parents. If your parents are divorced, you can still be listed on one parent’s auto policy, even if you only live there part-time.
This is what you need to know about when kids need to get their own auto insurance. Do you have additional questions about your car coverage? If so, then contact the experts at Mike Leonard Insurance Agency. Our dedicated team is eager to find you the right coverage from one of our many carriers, including: Kemper, MetLife, Nationwide, Travelers, Safeco Insurance, Progressive, and American Strategic Insurance.