Moving Away From Home; Are You Still Covered Under Your Parents’/Guardians’ Auto Insurance Policy?
Moving out of your parents’/guardians’ home can be an exciting and nerve-wracking experience. Although you may be eager to have increased independence, you may be a little unsure how to navigate different aspects of living under a separate roof.
A concern you may have is what happens to your auto insurance coverage and if you are still covered by your parents’/guardians’ policy. Like several questions that may arise during this transition, the answer depends on several variables.
A few common scenarios are discussed below and if you need additional guidance, the agents at JJ Insurance, Inc. in Denver, Colorado, are ready to assist you. Contact us for more information.
Staying on Your Parents’/Guardians’ Auto Policy
Factors that may determine if you are able to stay on your parents’/guardians’ auto policy include whether you are establishing a separate residence and if you own your own car.
Scenario #1: You Move Out and Own Your Car
If you own your car (i.e., it is titled solely in your name), you generally will need your own auto insurance policy regardless if your move is temporary or permanent.
Scenario #2: You Don’t Own Your Car and You Don’t Establish a Separate Residence
If you still consider your parents’/guardians’ address to be your primary residence and you drive a car they own, you may be able to stay on their auto insurance policy, regardless of your age.
For example, if you are moving away for college but still live at your parents’/guardians’ house during breaks, you typically haven’t established your own residence. This may allow you to stay on your parents’/guardians’ policy which may be cheaper than purchasing your own. Make sure to work with your insurer in this scenario as each carrier’s terms vary.
Scenario #3: You Don’t Own Your Own Car and You Establish a Separate Residence
If you move to a separate residence but continue to drive a car owned by your parents/guardians, you will likely need to secure a separate auto policy unless you can establish you are still financially dependent on them.
Typically, financially independent individuals who don’t live with the policyholder (e.g., parents/guardians) cannot be on their auto policy. Living on your own may lead to an insurance company deeming you financially independent. There may be exceptions to this (e.g., living in a second property your parents/guardians own may help demonstrate you are still financially dependent on them) so make sure to discuss the specific situation with your agent.
Securing the Right Auto Insurance Policy
The team at JJ Insurance can help you get the auto insurance that is right for you. We can discuss if you need your own policy and what factors may influence its price (e.g., age, location and driving history). Contact us today for more information or a quote.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.