It's natural to wish to pay the least amount of money for car insurance. For many young drivers, this means being added to their parent's policy because rates for young drivers under the age of 25, particularly men, are higher than rates for any other age group.
If the title to your car is in the name of your parents or guardians, you can be added to their auto insurance policy, possibly at a lower rate than if you had your policy. However, if the car is registered in your name, you will be unable to do so.
Should you buy your auto insurance policy?
Your parents may have purchased your first car. Then, once you have your policy, all you have to do is add your name to their policy because a single policy can cover all drivers living in the same house related to the policyholder.
Even if you still live with your parents, if your name is on the title of your car, you'll need your policy. The first step is to obtain quotes from insurers to identify the company that provides the most comprehensive coverage for the lowest premiums. Because some insurers don't like to write more than one auto policy for a single address, your best bet is to look for a company other than the one your parents use. However, some insurers may offer you a discount, so be sure to inquire.
Even if you rely on your parents financially and live in their home, insurers won't care if your name is on the car's title. In the event of a claim, your insurer will issue a check to the car's owner. The insurance company will be unable to make a payment if the policyholder is not the owner.
Can you get your policy while living at your parent's house?
Yes, even if you live in your parent's house, you will need your policy if you own a car. Is it necessary to have your car insurance and registration under the same name? The answer to that question is also yes, but New York is the only state that has enacted legislation on the subject.
If you get your policy, you can only get insurance for a car registered to you and has your name on the title. Except for New Hampshire, every state in the United States requires you to have a certain amount of car insurance.
Remove yourself from your parents' policy once you've found an insurance company with whom you want to work. Depending on your age, this may lower premiums because one more minor driver is on the policy. However, you may have to pay a little more if you are young. Make sure your parents' insurance does not cover you to save them money.
Can college students stay on their parent's car insurance policy?
Even if you're away at college, if your permanent address is your parent's house, you can stay on your parent's policy as long as your name isn't on the title of the car you drive. There is no age limit on how long you can stay on their policy, and it is probably easier all around if you are listed.
If you do not bring your parent's car to campus, there may be some financial benefits. Some insurers provide a discount on car insurance premiums if you are a student.
Can you drive your parent's car without having insurance? If you frequently drive your parent's car, you should be listed as a driver on their policy to be covered. This is simple, and all that is required is a quick phone call to an agent who can handle the details.
Is car insurance cheaper if you own the car?
In this case, the answer is "probably not." You are in the highest risk group for car insurance as a young driver, especially if you are still a teen. Young drivers cause the most accidents of any age group, so insurers must charge higher premiums to ensure they have enough money to pay out on claims.
If you are a young driver, your premiums will be high whether you own the car or not. Even if you're listed as a driver on their policy, the rate that an insurer will charge your parents, unless they're bad drivers, will most likely be lower than what you'd pay for a policy.
How to reduce your parents' insurance costs
There may be other ways you can assist in lowering your parent's insurance costs. Additional discounts may apply, such as those provided by many insurers for students who maintain a "B" average or higher while in school and a value for allowing the insurer to use a telematics device to monitor your driving in real-time. If you drive the speed limit, avoid hard stops, and don't drive late at night, your insurer will reward you with a discount.
Driving an older car is another way to keep your parents' insurance costs low. Older vehicles are worthless, and it may not make sense to pay for collision and comprehensive insurance if the car is damaged enough to warrant an insurance claim. Eliminating that coverage will significantly reduce your parents' rate.
It also pays not to make claims on your coverage. An at-fault accident significantly raises insurance premiums. Even minor infractions, such as not wearing a seatbelt, can impact your costs. One crucial way to keep rates low is to maintain a clean driving record.
How long can you stay on your parent's insurance?
There is no upper age limit for remaining on your parent's health insurance. The only requirements are that you live in the same household and that your car is registered in their names. You can remain on their insurance indefinitely if you meet those two requirements.
Can you insure a car that does not belong to you? No. In most cases, the policyholder must be the owner of the vehicle. Once you've obtained your driver's license, consult with your parents to determine how you'll handle insurance costs.
- There's no age limit for being on a parent's car insurance policy.
- There's no need for your policy if you don't own the car.
- Rates may be lower if you stay on your parents' policy.
Can you drive your parent's car without having insurance? Except for one state (New Hampshire), you must have insurance, whether your own or your parent's. Whether the vehicle is registered in your name, you must have your insurance policy.
However, if you do not own the car, you can remain on your parent's policy as long as your permanent address is their home. There is no age restriction, and it may be less expensive to be on their policy than to have your own, especially if you are a young driver. You'll need your own auto insurance policy once you're out on your own, or if you own the car you're driving.