How Long Can I Use My Parent's Car Insurance Policy

November 7, 2013

If you still live at home and are still listed as a driver on your parent's car insurance policy, you may be wondering how long you can continue to use your parent's policy. Generally speaking, there is no maximum age for a child being listed on a parent's car insurance policy--as long as you are still living with your parents.

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However, once you move out of the home, you will be required to carry car insurance under your own name. Many insurance companies do allow exceptions for children that are off at college, but still retain their primary residence address with their parents.

Reasons to Remain on Your Parent's Policy

Most of the time, young drivers can get lower insurance rates as long as they remain on their parent's car insurance policy--that is along as they have a good driving record, don't get any speeding tickets and are not involved in accidents.

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Additionally, students can also help decrease the amount of their parent's policy premiums by getting good grades and passing a driver's education course. Most insurance companies offer discounts for young drivers that do well in school and enroll in a driver safety course. In fact, these types of discounts may save your parents up to 20% to 25% off of adding you to their insurance policy.

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Most insurance companies reward students for their good grades, because insurance companies know that students that do well in school are usually more responsible and safer drivers.

Premium Considerations for Young Drivers

Although there are many factors that will determine how much money your parents are charged to add you to their policy, the most important factors will be your driving record and the type of vehicle that you will be driving. The insurance company will also look at how often you will be driving a particular vehicle and the distances that you will normally travel. For example, if you work or go to school relatively close your home, then the insurance company may charge lower premiums than if you have to commute one or two hours daily to work or school.

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Furthermore, if you are driving a particularly expensive vehicle or a sports car, then the insurance company is much more likely to charge much higher premiums than if you were driving a more common type of vehicle or one that is considered only average. In order to help your parents save money on car insurance premiums, you should consider driving a vehicle that costs a little less and does not cost so much to insure. Once you become 25 years old, your insurance rates premiums will go down considerably and you can opt to choose more expensive, trendier vehicles at that time.