Article published by : Gracie Hayden on Friday, April 27, 2018

Category : Insurance

What Age Can You No Longer Be On Your Parents Automobile Insurance?


There is no car insurance age limit to get off your parent’s automobile insurance. Insurance companies rate policies that are vehicle and household specific rather than age specific. If you are a teen who’s dependent on your parents, you must stick to their existent policy. Not only will this help you to enjoy the existing discounts, it will also cost you way too less than getting an independent insurance. In case you move out, or become financially independent, you should get a new policy to your name for coverage.

What Age Can I No Longer Be On My Parents Car Insurance

Is there a car insurance age limit to get off your parent’s insurance. Well no, there’s no such age limit prescribed by insurance companies because there are no car insurance age groups categorization done by insurers. In fact in most cases, parents add their children to their existing policy, which allows them to take advantage of existing discounts. They just have to add their child’s name as a driver in their policy thus covering them with an existent policy. Not only this saves money, plus it let’s your child reap all the existing advantages of your policy, without having to invest in another. Some also take out a separate insurance policy to cover the young driver’s car. Some people stay on the family policy through college and beyond unless they move out.

Insurers have household specific insurance rules rather than age specific. This is done to help the aged car insurance. All the people living in the same house, who have access to the vehicle, and are related to the principle policy holder through blood or marriage, have the advantage of being covered under the same policy. The principle insurance holder has financial interest in the car, and the rest of the family are listed as drivers in the policy.

Even though it’s a personal choice to either add your child to an existing policy or to take out a new policy covering him/her, but remember teens are some of the most expensive drivers to insure, especially if it’s a male child. Girls are considered more cautious on the roads than their male counterparts, but as teens, they have overall high rates when it comes to automobile insurance. So adding your child to your existing policy can help you save a lot. Once he/she moves out they need to get a separate insurance policy.

When should a young driver be listed on a policy?
Any teen with a driver’s license should be listed on the policy, irrespective of whether they drive the car or not. Insurance companies set your rates taking in account all the household members that are of driving age. A teen living with his parents automatically increases the premium regardless of whether he/she drives the car or not. So there’s no reason to not add them and give coverage.

All resident relatives listed on an insurance policy will be covered under the policy’s personal injury protection coverage. This covers medical expenses during car accidents (irrespective of the car they are riding in) or if he’s hit as a pedestrian.
Even when the driver turns 18, there are many reasons to continue insuring them on the family policy:

- If the young driver still lives at home as a permanent resident.
- If he/she is a dependant.
- If they have frequent access to the family vehicle.
- If they drive a vehicle owned/ co-owned by a parent.

When should drivers get their own policy?

- If an individual no longer lives with his/her parents.
- If an individual is married or has children of his own.
- If he/she is financially independent.
- If the driver is the sole owner of the vehicle, carrying financial liability for it.
- If he/she lives permanently away from home.

What happens if I never get off my parent’s policy?

Some people continue to use their parent’s insurance long after they move away from home. In most cases the insurance company does not realize the same until a collision occurs. Once your insurer learns about it, they respond by completing an underwriting review. If it reveals in their investigation that the policy holder is insuring vehicles that are not supposed to be covered under a family auto policy, they might deny coverage to that vehicle or might even cancel the policy altogether.

So, even though there’s no specific auto insurance age limit to get off your parent’s insurance, it’s a good idea to have your own independent policy in case you move out, get married or become financially independent. One should not try to commit a fraud in this case or else the entire policy might be nullified by your insurance company. In case you are a teen who’s financially dependent on your parents, it’s the best idea to get yourself listed on your parent’s existent policy because it’ll help you enjoy the existing discounts and positives.




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Keywords: This is done to help the aged car insurance, separate insurance policy to cover the young driver’s car



By: Gracie Hayden

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