There’s nothing that comes with such a set of mixed emotions as sending a child away from the nest. There’s an excitement of being an empty nester after so many years of caring for this newly minted adult.
But, there is also a twinge of sadness for not being as needed anymore. So, many parents want to do everything they can to help their adult children get a leg up in the world. That’s why parents often keep their children on their car insurance policies well into adulthood.
If you find yourself asking, once they’re grown, is my child covered under my car insurance, you’re not alone. Here we will give you all the answers to this question.
Is My Child Covered Under My Car Insurance Once They Move Out?
If you already have your child on your policy and insured than what changes when they leave the nest? In this case, nothing. As long as they maintain that same vehicle they can remain on the policy and be covered.
Now, adding them to your policy once they’ve left home and have a car of their own is a little trickier. Get in touch with your auto insurance carrier and ask about the logistics of insuring the driver and a car that’s not yours.
Depending on the insurer, you may or may not be able to insure someone who isn’t living with you.
What’s the Age Limit for Coverage on my Policy?
When your child turned 16 you probably put them on your auto insurance policy because they would be driving your car. It also drove your premiums up way higher than you were used to.
This is because new drivers are considered risky drivers. They have more of a chance of getting into an accident due to inexperience.
If you have a daughter these rates will lower, in most states, when she turns 21. Your son will have to wait for lower adult rates to kick in until he’s 25 though.
In either case, once the child has moved out, the maximum age limit to be covered on your parent’s policy without incurring additional fees or penalties is 24. After that, you will be asked to pay more money to keep them on the policy.
If the child remains at home, they can stay on the policy indefinitely.
So, Why Can’t We Just Say Our Kid Still Lives With Us?
It’s not a good idea to lie to your insurance agency.
If the insured child ends up in an accident and the insurance finds out you’ve made falsehoods on your application or policy they could deny the claim or even cancel your policy altogether.
This will drive up everyone’s rates because a cancellation looks bad on your record.
The Advantages of Keeping Them on Your Policy Are All on Your Child’s Side
Keeping your young adult on your car insurance is a great deal, for that young adult. They will be saving a ton of money by not having to purchase their own policy which would be a whole lot more expensive than yours.
For an 18-year-old driver, insurance could cost them more than $3000 a year whereas staying on your policy and paying you their share would be a small fraction of that price.
They also get to build up their driving and insurance records on your dime. If they get in an accident that goes on your policy not theirs. But, they also have all that stellar history if they’ve been accident-free on your policy.
The disadvantages are all found squarely in your lap. You’ll be paying at least double the amount you’d pay without a young driver on the policy. You are vouching for them that they’re a good driver. You get dinged if they end up in a fender bender.
All of their offenses will end up on your insurance record which could be costing you money years from now.
So, Should I Kick Them Off My Policy?
While that is totally up to you it benefits you to consider it if you’re in these situations:
- Your child has moved out and is financially independent of you
- Your child owns their own vehicle and will not be driving any vehicle you own
- If you are not helping them keep up the maintenance and registration of the vehicle
If these are true then it’s time to cut the cord and for them to get their own insurance policy. However, if your child is still in college or financially relies on you in some ways, keep them on.
The last thing anyone wants is for a child who really needs help to fall flat on their face.
It’s Your Insurance, You Decide If It’s Worth The Risk
We hope we have shown you that the answer to, is my child covered under my car insurance, is yes if they’re on your policy.
But, there are ups and downs to every situation. Consider the pros and cons of keeping them on your policy carefully. The less risk you have on your insurance profile the lower your rates will be and the more money you can save.
Remember that by keeping them on the policy you are putting your honor on the fact that they are responsible drivers. If they screw up it will be on your insurance record. So, make sure the child in question is a responsible one who won’t take that lightly.
Ready to get a quote to add them to the family policy?
Contact us now for your quote and help us welcome you into the Amistad family.