You cannot be on your parents’ car insurance if the car is in your name and you are listed as the sole owner. Your parents can’t insure your car unless they are listed as owners. So if you are thinking about buying your own car, it is a good idea to ask for quotes from several insurance companies first. Your parents’ insurance company may not offer you the best rates when you’re alone on a policy.
When You Can and Cannot Be on Your Parents' Car Insurance
Can you be on your parents' insurance?
Your parents own your car and you live with them
Your parents own your car and you're away for college
You own your car and you live with your parents
You own your car and moved out
If you are not listed as the sole owner of the car, you might be able to get even cheaper insurance. Living in your parents’ home allows you to list them as the owners of the car you’re driving, in which case you can remain on their policy and save money.
Additionally, If you are a college student who uses your parents’ address as your permanent place of residence, and you drive a car owned by your parents, you can remain on their policy. If you do not bring that car to college with you, you might be able to qualify for additional discounts.
Car insurance for a 23-year-old costs $87 per month, on average. Twenty-three-year-old drivers pay more for car insurance than older, more experienced drivers because insurers consider them to be high-risk, meaning they’re more likely to file a claim.
The exact cost of car insurance for a 23-year-old depends on a few factors, including their driving record, gender, location, vehicle, and car insurance company. Some of the best insurance companies for 23-year-old drivers are … read full answerGeico, AAA, and USAA.
Cost of Car Insurance for a 23-Year-Old by Company
$589 per year
$649 per year
$656 per year
Note: Rates are an approximation based on a driver in California with minimum coverage. Actual rates will vary.
The average cost of car insurance for a teenager is $215 per month, for an individual policy. Younger teens typically pay the most for car insurance coverage, with 16-year-olds paying an average of 85% more than 19-year-olds.
Average Cost of Car Insurance for Teenagers by Age
Teenagers are more expensive to insure than older, more mature drivers because they’re more likely to be involved in an accident, which makes them high-risk. In fact, teen drivers are nearly three times as likely to be involved in a fatal car accident as drivers over the age of 20, according to the CDC. Teenage boys are even more expensive to insure than teenage girls, paying an average of 10% more for coverage.
How to Lower the Cost of Teenage Car Insurance
Even though car insurance is typically expensive for teenagers, there are still ways to lower the cost of covering a young driver. One of the best ways to reduce the cost of teen car insurance is to add them to an existing policy rather than have them purchase their own policy. Adding a teen to a policy raises rates by an average of $1,461 per year, but it’s still cheaper than the cost of a separate policy. Also, look for discounts that are specifically for young drivers, like good-student and student-away-at-school discounts.
If your teen does need to purchase their own policy, they should compare quotes from at least three different insurers in order to find the best deal. The cheapest car insurance companies for teens are Travelers, USAA, and Progressive, according to WalletHub’s analysis.
Car insurance for a 16-year-old costs $211 per month, on average. Sixteen-year-old drivers pay more for car insurance than older, more experienced drivers because insurers consider them to be high-risk, meaning they’re more likely to file a claim.
Because the cost of coverage for 16-year-olds is so high, it's important to shop around for multiple quotes before buying a policy. Some of the best car insurance companies for 16-year-old drivers are … read full answerTravelers, Geico, and USAA. Comparing quotes is more important in some states than others, though, considering the average cost.
Note: These are the top 10 largest states by population.
The exact cost of car insurance for a 16-year-old depends on a few factors, including their driving record, gender, and vehicle type. Additionally, whether a 16-year-old is buying their own policy or being added to their parents’ policy makes a difference.
Adding a 16-year-old to an existing policy will raise the premium by an average of 140% to 160%. But even with the added cost, it’s still a more cost-effective option than having the driver purchase their own policy.
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