You’ve packed the last of your belongings into your car and you’re ready to say sayonara to living with your folks. You turn the key in the ignition and start to daydream about your newfound independence… which leads to a startling thought: can you stay on your parents’ auto insurance when you move out?
I’m Going Off To College -- Do I Need a New Insurance Policy?
As long as your parents’ address is still listed as your permanent address, then yes, you can stay on their policy while you’re at college. However, if you decide to keep your car on campus, let your insurer know the ZIP code. Reporting this information is necessary to ensure full coverage if you get in an accident on campus or if your car has been broken into.
Your insurer could offer a discount to students who are 22 years old or younger and over 100 miles from home, adding up to hundreds of dollars in savings a year.
Some insurance companies even offer good student discounts-- a good student discount could save you an average of 5 to 15 percent a year.
I Said 'I Do' -- How Will This Affect My Parents’ Auto Insurance?
Once you get married, you’re no longer considered a dependent; therefore, you will lose your parents’ insurance coverage.
The good news is, if you’re 25 or older, your rates could be lower than they were when you were between the ages of 16 and 24. That’s because according to the Department of Motor Vehicles, drivers under 25 are statistically much more likely to be in an accident.
How Long Can I Stay On My Parents’ Auto Insurance?
Let’s say you’ve graduated college (congratulations!) but you aren’t married. Then what?
As long as you can prove you are financially dependent on your parents (ie living in their house), you can stay on their policy. Unlike health insurance, there is no “magic number” that kicks you off an auto policy.
But, if you buy your own vehicle and it’s registered in your name, you may need to get your own individual auto insurance policy. Every auto policy is different, so make sure you check with your insurer before registering a vehicle in your name.
What Are The Benefits of Staying On My Parents’ Insurance?
There are a plethora of reasons why staying on your parents’ insurance is a good decision (if you can!), especially if your wonderful parents agree to continue paying for your part in their policy.
Another not-so-obvious reason to stay on your parents’ insurance benefits all of you: usually, sharing one auto insurance policy is more affordable than having separate policies since you’ll split the cost of certain coverages.
Finally, sharing a policy with your parents means you can all operate each others’ vehicles since you’re all covered under the same policy.
Do You Have The Right Coverage?
Whether you need your own auto insurance policy or you’ve decided you can stay on your parents’, having the right coverage is ideal. Finding the right coverage and policy for you can be confusing, but Block Insurance is here to help. Contact one of our agents and we’ll make sure to get you the coverage that best fits your needs, or fill out our form online to get a quote today.