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.
- 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.
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