Keep Your Kids On Your Car Insurance Until They Turn 40? It’s Possible.
Imagine that your child just graduated from college and despite their expensive new degree they are unable to find a job. They move back in with you, and are still driving your cars. They have to be insured so you call your insurance agent with the following question:
Just how long can I keep a child on my car insurance policy?
The bad news is that your child may be unemployed for a while but the good news is that you can keep them on your insurance policy as long as they are living with you. Unlike health insurance, which requires them to get out on their own at age 26, auto insurers will gladly add your 80-year old child to your policy as long as they are under the same roof. The downside of this arrangement is if your child is in an accident or gets a ticket, your rates are going up.
Anyone Living In Your House Has to be on Your Policy
Insurers will not only let you keep your young adult on your policy, they will require it. Insurers must be able to accurately access the risk they are taking and being aware of all drivers in the household lets them properly calculate a premium.
Adding a teen or a young adult to your policy will raise your rates dramatically. Teens and young adults under 25 are expensive to insure because they are inexperienced risk takers who have accidents at four times the rate of adult drivers. In most cases you can expect your rates to at least double and possibly triple.
While it may be tempting to keep your young graduate off your policy it can be an expensive mistake. If your child drives your car and has an accident coverage will be denied and you could personally be on the hook for all damages.
Getting Their Own Car
If your child decides to buy and title their own car most insurers will require that they have their own policy. Having their own policy will be more expensive than staying on yours so if saving money is key you may want keep them on your policy, driving your car.
Once your child has their own car you may want to take them off your policy to drop your rates, however it can be tricky. Many insurers will require you to sign a driver exclusion while they live in your household. An exclusion means that if your child is driving your car for any reason you will not be covered.
Off To College
When junior heads off to college you may think dropping them off your policy will save some money, but many insurers will not allow you to do this. Your child could drive a friends car at college, or drive your vehicles over summer vacation so coverage is still advisable. Insurers usually offer discounts for students who go to college at least 100 miles away and do not have a car.
If your child is at school with one of your cars, keeping them on your policy is usually not a problem. Check with your insurer to verify and determine if there is a rate decrease due to the car being in a different zip code.
Your Kid Has to Go
There are circumstances where your insurer will require your child to get their own policy:
Bad Driving Record – If your child is picked up for drunk driving, reckless driving or acquires a large number of speeding tickets there is a good chance your insurer will insist you move them onto their own policy. You will be required to sign a driver exclusion for your vehicles so your child will be unable to drive them.
Moving Out – Once your child moves out on their own you will need to remove them from your policy. Even if they are driving one of your cars, if they live on their own, have a job and are out of school they will need to get their own policy.
Buy A Car – Once your young adult buys their own vehicle most insurers will require they get their own insurance coverage.
In many cases you can leave your teen or young adult on your policy as long as they are living under your roof. There can be exceptions so be sure to check with your agent on specifics.