How Long Can You Stay On Your Parents’ Car Insurance?

Policyholders must notify their auto insurer of all licensed drivers who live in their household, regardless of whether those licensed drivers have their own insurance.

You can remain on your parents’ policy as long as you live in their house and drive vehicles owned by them. Your parents can insure a co-owned car that has both your name and their name(s) on the vehicle’s title. However, if yours is the sole name on a title, you will need your own insurance policy.

When to get a policy

There are many reasons you might want your own auto insurance policy. Ask yourself these questions:

• Are you planning to move out of your parents’ house in the next six to twelve months?
  Your parents cannot insure a car that is not kept at their home address. Moving can be stressful; consider purchasing your new policy beforehand.

• Are you planning to buy, finance, lease, or change the title of a car to your name?
  You can’t insure a car you don't own — and neither can your parents. If you move and take your parents' car with you, you will have to change the title.

• Will you declare residency in another state?
  Auto insurance doesn't follow you if you establish permanent residency in another state.

• Are your parents looking for ways to save money on their premium?
  Young drivers can face higher insurance costs than older drivers because they have a higher risk of being involved in a crash.

• Have your parents had more accidents in the past three years than you?
  If your driving record is better than your parents’, you may save money by having your own policy.

• Are you aging out of your parents’ health insurance coverage?
  In most states, a child can only remain on their parents’ health insurance until age 26. If your parents chose Health Insurance Primary for the Personal Injury Protection coverage on their auto policy, their health insurance will respond first to injuries from a car crash. Depending on your circumstances, this could mean you have less coverage for medical expenses following an accident after age 26. You can avoid this gap by obtaining your own health insurance when you are no longer covered under your parents’ policy.

Benefits of staying on your parents’ policy

• Receive discounts such as multi-car or home and auto bundle.
• You could save money on your premium if your parents are safe drivers.
• Often, the cheapest way to insure teen drivers is to include them on a parent’s policy.

If you are away at college, you can stay on your parents’ auto insurance as long as your permanent address is still your parents’ home. You may even receive a discount if you attend a school more than 100 miles away and don't have your car with you.