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, but only under certain circumstances, like if you’re off attending school, you’re an eligible dependent driving a car owned by your parents, or you live in another house your parents own. Auto insurance companies don’t impose an upper age limit for keeping a child on a parent’s policy, as long as customers adhere to the insurance company’s rules.Usually, children cannot stay on their parents’ car insurance if they move out of the house or reach what auto insurance companies call a “threshold of financial independence.” This is because auto insurance policies are sold in part by considering how many active drivers live in an insured customer’s household. Insurance companies may consider a child financially independent for a variety of reasons, such as only living with their parents part-time, getting married or buying a residence for themselves. Some auto insurance companies offer more flexibility than others, however, so it’s a good idea to check with your parents’ provider.… read full answer

When You Can Stay On Your Parents’ Car Insurance If You Move Out:

• 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.
• You’re living in another house your parents rent or own.

For young adult drivers, it’s usually cheaper to stay on your parents’ insurance. However, if you move out, don’t lie about where you live in order to stay on your parents’ insurance policy, as it could be considered misrepresentation or fraud. If you need to file a claim and your insurance provider finds you live at a different address, they could deny it and cancel coverage for you and everyone else named on the policy. Finally, it's also important to note that if a child moves out and 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. But if a child doesn’t have a car of their own and will be driving their parents’ car(s) regularly, the parents should keep them on their car insurance policy.