Can I drop my child from my car insurance?

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 … read full answerinsurance 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

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.

If you don’t add your child to your auto insurance once they’ve gotten a learner’s permit or driver’s license, you could face problems filing a claim, keeping discounts, or maintaining your auto insurance policy altogether if something happens while they’re driving your car. Your car insurance company could even demand a lump sum of back payments for the premiums that should have been paid since your child has been able to drive. Not listing such a driver on your policy could be considered material misrepresentation.… read full answer

On the other hand, babies, toddlers and young children are automatically covered on car insurance policies while they live with their parents, so nothing will happen to you if you don’t add your young children to your auto insurance.

Similarly, if your child is “financially independent,” according to your insurance company’s definition, or doesn’t live with you anymore, you don’t need to add them to your policy, and nothing happens if you don’t. Your child will be covered automatically if they only drive your car from time to time, under what’s called “permissive use.” This covers adult children and other family members who don’t live with you, as well as friends, neighbors, caretakers and others who may drive your car occasionally.

Yes. You can stay on your parents’ car insurance if you move out, as long as:

• You’re away at school and still list your parents' home address as your primary residence.
• You’re considered an eligible dependent (insurers have different definitions) and you still drive a vehicle owned and insured by a parent.… read full answer
• You’re living in another house your parents rent or own.

There is no age limit for keeping a child on a parent’s car insurance policy. Insurance companies do have different rules regarding when someone is no longer considered a dependent, though. For some, you may not be a dependent if you are only living with your parents part-time. Others may consider you a dependent until you get married or buy a residence for yourself. It’s a good idea to check with your parents’ insurance provider if you’re in doubt.

When You Cannot Stay on Your Parents’ Car Insurance

Usually, unless you’re a direct dependent, you cannot stay on your parents’ car insurance if you move out of the house permanently since auto insurance policies are sold in part by considering how many active drivers live in an insured customer’s household. Insurers also take into account a driver’s ZIP code when determining premiums.

While it may be cheaper for young adult drivers to stay on their parents’ policy, don’t lie about where you live just to keep those cheaper premiums. Lying about your address can be considered misrepresentation or fraud, and if your insurer finds out, they could cancel coverage for you and everyone else named on the policy.

Finally, it's also important to note that if a child moves out but still drives their parents’ cars occasionally, they will be covered under what is called “permissive use.” In that scenario, they don’t need to stay on their parents’ car insurance policy or get their own policy.