How Long Can I Stay on My Parents' Insurance?

Written by James Hirby | Fact checked by The Law Dictionary staff |  

Car insurance is a major expense for which many young people fail to plan. In fact, it's especially important that you account for the cost of your auto insurance policy in your household's budget. Since these costs tend to vary over long periods of time, a sudden spike in your auto insurance premiums after an accident could wreak havoc on the careful financial planning that you've conducted over the years. In order to avoid such an embarrassing problem, you'll need to take steps to keep your car insurance premiums as low as possible.

This might not be exceedingly difficult. Unlike health insurance providers, most auto insurance companies permit their policyholders to remain on their parents' policies indefinitely. While most providers attach several caveats to this general rule, you might be encouraged to know that you'll be able to carry some form of car insurance for the foreseeable future. As you might imagine, your ability to remain on your parents' policy is liable to provide a major boost to your budget. For a variety of reasons, older married couples usually pay far less for car insurance than young, single drivers. As an "attached driver" on your parents' insurance policy, you stand to save as much as $1,500 per year on your premiums.

You'll almost certainly be allowed to stay on your parents' insurance policy for as long as you remain single and live in your parents' house. If you enter into a marriage, your insurer might bring an end to this arrangement. While most insurance companies permit individuals who don't live with their parents to remain attached to their insurance policies, it's possible that your provider will require you to obtain your own policy after your final move-out.

In order to ensure that you're not flouting the law by remaining on your parents' insurance policy, you'll need to confirm two key pieces of information. First, your parents will need to retain the title to your vehicle. If you purchased the car with the aid of a financing mechanism, one of your parents will need to act as a cosigner. If you purchased the car outright, you'll need to include at least one of your parents as a co-owner. In addition, you'll need to list yourself and one of your parents as "covered drivers" on the vehicle's insurance policy. Since it's likely that the policy will be attached to your parents' other auto insurance policies as well as their homeowner's insurance plan, this shouldn't be difficult.

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