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.
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.
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