What Age Do You Get Kicked Off Your Parents Car Insurance?
Car insurance can be costly for younger drivers. If you’re a young driver who hasn’t had your license for very long, insurance companies really don’t care if you’re responsible, if you always hand in your homework on time, if you’re good at saving up money, if you always take your dog for walks, if you don’t drink or party, etc. You’re young, therefor you are statistically more likely to be involved in a car accident, full stop.
You could be an incredible driver, but until you’re older, you’re going to be paying a higher rate. Now, it’s better to be young with a clean driving record than to be an older driver with a poor history, but it takes a while to build up a great driving record and to unlock lower rates.
Insurance companies measure risk in a lot of different ways. They want to make sure that overall, the amount of money take in from premiums is lower than the amount they have to pay out. Otherwise, it wouldn’t be a very sustainable business. In any case, when you’re younger, there are a number of ways to save money on car insurance, including being on your parents’ insurance while you’re living at home.
How Long Can I Stay On My Parents Car Insurance?
Certain types of insurance have a clear cut-off age, at which point you’re no longer allowed to be on your parents insurance. The biggest example of this is health insurance, where you’ll get the boot from your parents’ plan once you reach the age of 26. It’s not the same with car insurance, though, but it’s reasonable you would think so and would wonder about how long you can stay on your parents’ car insurance.
As long as you’re living with your folks, not only can you stay on their car insurance – but there are some insurance companies that will actually insist that you be on their plan, since you’ll have access to their car and presumably that puts you at risk of crashing the car. So, there you have it!
Should I Stay On My Parents Car Insurance?
After someone learns that they can, in fact, stay on their parents’ auto insurance plan the next question is usually why they would want to, or if they should.
The reason for staying on your parents’ insurance, even if you have your own vehicle, is because their premiums are probably going to be a lot lower than yours.
The rules may vary from location to location, but in some places, you can simply have your parents register the vehicle in their name(s), despite the fact that it’s technically your vehicle and you’re the one driving it. Make sure this is a-ok wherever you live, because the last thing you want to do is to break the rules and find out you aren’t actually covered in the event of an accident.
As we alluded to earlier, if your parents have a good history and a solid driving record, their insurance will cost a lot less than yours will, so running it through them is a great way to save money. Even if they have their own vehicle, the insurance plan will itemize how much the coverage for each vehicle costs, so you can easily pay them back whatever it costs them instead of paying it directly and having the car in your name.
Not everybody has this luxury, some people don’t live with their parents, don’t get along with their parents, or don’t have parents who are willing to do this for them. If you fit into that category, don’t worry, there are other ways to save money on car insurance. In fact, that’s what this site is all about. No matter what your unique situation is, there are ways to save money on car insurance, you just need to know where to look and what to look for.
Not over-buying insurance, in other words getting all of the coverage you can at the max levels, is another way to spend less. If you’re interested in learning more about how to decide how much car insurance coverage you need, here is a helpful resource.
There’s more to it. If your parents want you off of their insurance sooner, that’s up to them. You could get kicked off your parents insurance anytime they want, just like they can kick you out of the house or make you start paying rent, etc.
So, the moral of the story is that there isn’t a set time that the insurance company will force you off of your parents insurance, it’s up to your parents – so if you want them to carry your insurance plan to save you money on premiums, or if you want to drive their car, be nice to them and appreciate it!
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