Can You Still Be a Listed Driver on Your Parents' Policy?
Oct 14, 2022 By Susan Kelly

Staying on your parent's auto insurance policy for as long as possible will help you save money compared to purchasing your policy. However, you may be obliged to get your insurance coverage under the regulations of your insurer and your state. Signs that the time has come to make the change include reaching major life milestones like moving out on one's own, graduating from high school, and starting a job.

Why Getting Your Car Insurance Is Necessary

When it comes to vehicle insurance, however, kids can stay on their parents' policies indefinitely, even if they reach adulthood without having health coverage. Whether you're a high school senior of 18, a married adult child of 35, or a parent-supporting adult child of 50, this rule holds for you.

Even if you have your insurance or don't drive, you may still be compelled to be included in your parent's coverage if you reside with them. You may be obliged to purchase your own if you are included as a dependent on your parent's insurance policy. Conditions warranting this may vary by provider and jurisdiction but often include the following.

Your Title

As long as the vehicle is kept at the insured's address, registration and insurance in many states are not required to be in the same name. However, if you live with your parents but your state mandates that the title and insurance be in the same name, you will need your coverage.

You Change Your Residence

Car insurance often must be transferred to a new owner whenever a car is relocated.

You're A College Student With A Title:

If you don't plan on living at home while in school and the title is solely in your name, you should consider purchasing your insurance coverage.

How Long Should You Rely on Your Parents' Health Insurance?

Prices for insurance, especially for individual coverage, are higher for teenagers and young people. Until you're in your mid-20s and have established stable employment and solid credit history, you're usually better off staying on your parents' insurance policy if you drive the family car and live at home.

Studies have shown that credit may be used as a predictor of insurance losses. Nationwide reports that more than 90% of insurers utilize credit-based insurance ratings to set your premium. Credit-based insurance scoring is prohibited or subject to strict regulations in the states of California, Hawaii, Maryland, Massachusetts, and Washington.


Discounts may change if you decide to purchase your coverage. Your parents may receive savings that you do not, such as a discount for bundling house and vehicle insurance or an affinity discount for membership in a certain group.

Similarly, you can be eligible for a premium reduction thanks to a good student or safe driver discount. To save money on insurance, you may stay on your parent's policy if you are a working adult still living at home.

Steps to Getting Your Insurance Policy Started

Consider these guidelines when you search for your first vehicle insurance policy. Before settling on an insurance provider, it's a good idea to compare prices from many providers.

Insurance companies give various amounts of weight to criteria like your credit history and driving record, so your premiums might range substantially from one company to the next. Get insurance estimates before purchasing a new vehicle to determine the annual premium.

Know State Minimums

In most places, you need at least the bare minimum of vehicle insurance to drive legally. Consult an insurance professional about the appropriate level of protection for your needs; in most cases, the bare minimum won't do. Leasing companies and financial institutions will insist that you have collision and comprehensive insurance if you take out a loan or lease a vehicle.

Enjoy Price Reductions

Auto insurance premiums may be significantly reduced by qualifying for discounts. Getting high grades, insuring a car with anti-theft devices, enrolling in a driver's education program, and buying several policies are ways to save money on insurance. In addition, discounts may vary from one state to the next and even across different suppliers.

Can You Keep Your Parents' Car Insurance After Moving Out?

That's up in the air. Since your parent's residence is still your permanent address, you may be allowed to stay on their policy even if you move away to attend college. However, if you leave home and establish residence elsewhere, you will certainly want separate coverage.

Your eligibility to stay covered by your parent's policy after you move out of their home may also be affected by state insurance laws and the terms and conditions of your insurer. Remember that unless you are a full-time student, you cannot utilize their address to qualify for lower rates.