Can I Stay On My Parents Auto Insurance Policy If I Move Out?
Health insurance is not the only expense rising; auto insurance is also increasing, and it you may find it difficult to find a policy that fits into your budget. In particular, young drivers may be at a disadvantage if they are shopping for car insurance policies as these companies tend to penalize young drivers for a lack of experience. In addition, impeccable driving records do little to change this way of thinking as many insurance companies will argue that these individuals simply have not had the chance to prove recklessness behind the wheel.
On the other hand, however, many insurance companies view middle-aged drivers as prime policyholders. According to these providers, middle-aged drivers are quick to react to changing road conditions, and they are typically more cautious than teenagers. Due to the way that both populations are viewed by insurance companies, it is no wonder why young adults who live at home “piggyback” on their parents’ car insurance policies, and these drivers typically pay less than young adults who live on their own and take out their own car insurance.
This is particularly true for drivers whose parents have “bundled” policies that include multiple types of insurance such as homeowner’s, renter’s or life insurance. Each portion of the bundled policy likely costs less since it is included as part of a package than it would if the policies were taken out separate from one another. Therefore, if you are currently included as part of your parents’ insurance policy and you plan to move out of the home in the coming weeks or months, rest assured that you may still be able to remain on their policy.
While most insurance providers recommend younger drivers to obtain their own auto insurance policies when they move into separate residences, the definition of a “separate residence” will likely vary from one insurance company to the next. In the eyes of many insurance providers, however, if you are traveling across the country or state to attend school and you plan to live in a dormitory on-campus, you are technically still living at home. By remaining on your parents’ car insurance policy, you can save a substantial amount of money, and some providers will even offer a lower rate if you leave your vehicle at your parents’ house while you are at college. The insurance company will presume that you do not have access to the vehicle while taking classes, so if you do not need it, it is best to leave it at home.
