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

June 8, 2016

If you still live at home and are listed as a driver on your parents’ car insurance policy, you’ve likely thought many times “I wonder how long I can stay on this 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 your parents’ home, you will be required to carry car insurance under your own name. Many insurance companies do allow exceptions for children who 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 parents’ car insurance policy—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 parents’ policy premiums by getting good grades and passing a driver's education course. Most insurance companies offer discounts for young drivers who do well in school and enroll in a driver-safety course. In fact, these types of discounts may save your parents 20 to 25 percent off the premium for adding you to their policy.

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

Premium Considerations for Young Drivers

Although there are many factors that will go into determining how much the insurance company will charge your parents for adding you to their policy, the most important factors will be your driving record and the type of vehicle that you drive. The insurance company will also look at how often you will be driving 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 more likely to charge higher premiums than if you were driving an economy car. 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. After your 25th birthday, your insurance premiums typically go down considerably and you can opt to go with a more expensive, trendier vehicle at that time.