For most young adults, counting on a car is a must. After all, with the whole COVID-19 pandemic going on, people should follow the safety guidelines of social distancing. And, what a better way to do that than by counting on your own car! However, can I add my car to my parents insurance?
How Does Auto Insurance Coverage Work?
Every young adult knows that paying for insurance premiums can result in costly fees. This is because, at this age, insurance policies tend to be much more expensive compared to other age groups such as middle-aged and older adults.
Moreover, most young adults don’t even have much of a choice when it comes to choosing between liability insurance or a full coverage one. In most cases, they tend to opt for the first option since it’s the most affordable one.
However, as you may already know, liability insurance doesn’t grant you the complete protection you need. You’ll only be able to have coverage for property damage and bodily injury liabilities from car accidents.
That’s why most young adults and teen drivers tend to consider opting for their parent’s car insurance.
Nevertheless, is this the best option for you?
Today, we’ll answer some of the main terms, conditions, and concerns many young drivers, such as college students, may have when adding a car to their parent’s insurance.
Can I Add My Car to My Parents Insurance Policy?
First, can I add my car to my parents insurance? If you live at home with your parents, and they are the owners of the vehicle, then you should have no problem adding the car you drive to their policy.
Generally speaking, most car insurance companies often ask if there are any family members with a driver’s license living with them. That way, they can list all potential drivers on their policy.
Is There an Age Limit for Car Insurance?
Unlike health insurance, auto insurance policies don’t count on an age limit. All you need to have is the same permanent address as your parents and shared ownership of the car with them.
Do Car Insurance Rates for Young Drivers Lower Over Time?
Luckily, car insurance quotes do decrease over time.
The reason why rates tend to be through the roof for young adults is due to the fact that they’re part of the age group with most car accidents. In other words, most insurance companies perceive them as riskier drivers.
Though, as time goes by, insurance fees lower. Usually, adults tend to get reduced rates by the time they reach 25.
Needless to say, remember that by keeping a clean driving record and a good credit score you’ll count on even lower rates.
Common Scenarios You can Add Your Car to Your Parent’s Insurance
Believe it or not, many people tend to go for having their car under the car insurance of their parents. That’s why we’ll go over the main scenarios in which someone might find themselves in this sort of instance.
Here are some common situations in which you can stay on your parent’s auto policy:
- Living with your parents and using their vehicle.
- Being a college student with your parent’s car.
- Having joint ownership.
Living with Your Parents and Using Their Vehicle
The first scenario most people tend to remain on their parent’s auto policy is sharing the same household and using their vehicle. This is because the car insurance is applied to the car itself and not to the driver.
Being a College Student with Your Parent’s Car
If you’re a college student, it’s common to wonder if going to college will affect your auto insurance policy. In the end, it’s very likely that you’re attending a college in another city, even in a different state!
So, if this is your case, then you won’t need to worry about getting a separate insurance policy. As long as your permanent address is your hometown, and you’re still considered as a dependent, then you can stay on your family’s policy.
Just remember to verify with your insurance provider since it tends to vary. Some insurance companies can even offer special discounts for good students.
Having Joint Ownership
Lastly, when having joint ownership of the vehicle with your parents, then your car can be on your parent’s policy. By co-owning your car’s title with your parents, you are also a policyholder for the insurance.
Nonetheless, both the parent and the child must have the same driving privileges regarding the vehicle.
When Is It Best to Get Your Own Insurance?
Adding your car to the auto policy of your parents can many times be much more beneficial than counting on your own insurance. However, it might not be the best choice, or even a possible one, for many drivers.
There are two main instances in which it might be best for you to count on a separate policy:
- Being the sole owner of the car.
- Living in a place that’s far away from your parent’s home.
Being the Sole Owner of the Car
The first instance that makes you non-applicable to your family’s auto insurance policy is completely owning a vehicle.
When owning a car, you’ll need to count on your own car insurance policy. This is because the policyholder must be on the car’s title to make a claim.
Moreover, this principle also applies when solely owning a car while still living at your parent’s home.
Living in a Place that’s Far Away from Your Parent’s Home
The second situation you might find yourself in need of getting a separate policy is when your permanent address is different from your parents.
Moreover, if you’re using your car regularly for school purposes and your college is far away, then there’s the chance that you’ll need your own insurance.
How Long Should You Stay on Your Family’s Insurance?
While remaining on your parent’s auto insurance is up to you, it’s best for drivers to eventually count on their own auto insurance policy.
That’s why we recommend young drivers start off by being on their parent’s policy while sharing ownership of their car. That way, they can wait off until they’re 25 and officially have their own vehicle to get better rates.
Lastly, if you want to avoid costly fees on your family’s insurance, then follow these simple tips:
- Be sure to look out for school discounts.
- Keep good driving habits and a clean driving record.
- Use a car that’s an older model.
- Avoid at-fault accidents.
When somebody asks you the question, “Can I add my car to my parent’s insurance?”, you’ll now know the answer! Remember to count on a great car insurance provider when looking for quotes online.