How Long Can You Stay on Your Parents’ Car Insurance?

While there’s no set age when you have to get your own coverage, you can’t stay on your parents’ car insurance policy once you move out of their house.

Find out if you’re paying too much for auto insurance here.

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Written by:

Dash Lewis , Writer

Written by: Dash Lewis Content Writer

10/21/2024 12:00 AM

Key Points:

You can stay on your parents’ car insurance as long as you live at their address.
You may need your own insurance policy if you have a car registered in your name or live at a different permanent address.
Car insurance for teens is usually cheaper when the teen stays on the parent’s policy.

Wondering how long you can stay on your parents’ car insurance policy? The short answer is: as long as you live with them. But as with all things related to car insurance, there are a few important nuances to understand. In this article, we’ll explain how auto insurance coverage works for dependents and offer recommendations on the best auto insurance companies for teens and young adults.

If you’re ready to get off of your parents’ car insurance policy and purchase your own, it’s important to shop around and compare your options. Many companies offer discounts for students and young drivers, so be sure to get a few quotes to see which auto insurer can offer you the best rate.

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Can You Stay On Your Parents’ Car Insurance?

You don’t stay on your parents’ car insurance in the same way you have the option to stay on their health insurance. Car insurance coverage typically follows the car and not the driver–meaning it’s covered regardless of who’s driving. With that being said, all drivers who live in the same household and drive the vehicle–no matter how infrequently–should be listed on the policy to ensure that claims are not denied.

Insurance companies require that all drivers in the household are either included or excluded on the policy. If a driver is specifically excluded, then that driver is not covered if involved in an accident while driving the listed vehicle.

A teenage driver who lives in their parents’ house needs to be included on the policy, as do spouses and any other dependents of driving age in the household. In other words, if you live with your parents and are an active driver in the household, you should be included on their insurance coverage until you move out or purchase your own vehicle and car insurance policy.

However, if you’re in college and only away during the school year, you can usually remain on your parents’ policy.

When Should I Get My Own Insurance Policy?

If you have your own car, it should either be included on your parents’ car insurance or have its own policy. The policyholder for a vehicle should generally be the person named on the title. This doesn’t matter if you’re 16 and living at home, or 26 years old and on your own. If you are the registered owner of the vehicle, you will likely need to purchase your own insurance.

If you’re a parent, you can remove a child from your policy once they move out of the house. But you’ll need to show that they no longer have access to the vehicle listed on the policy or that they now have their own car and insurance coverage.

Pros And Cons Of Staying On Your Parents’ Car Insurance

When it comes to getting your own insurance as a young driver, there are many things to consider–namely price. Drivers under the age of 25 are most expensive to insure because of their limited experience behind the wheel and the risk associated with that. Because insurance companies view young drivers as a higher risk, they charge higher premiums accordingly.

It’s usually cheaper to be included on your parent’s policy rather than purchasing your own because more experienced drivers have better rates and this will ultimately keep your rate lower as well. Your parents might also qualify for discounts if they are insuring more than one car or bundling their auto and home insurance.

Additionally, in order to purchase your own insurance policy, you usually need to be the owner of the car–meaning named on the title. So if your parents gave you a car but it’s still in their name, they’ll need to be the ones who purchase the insurance for that vehicle.

While it’s usually better for young drivers to remain on their parents’ car insurance as long as possible, we’ve highlighted below a few pros and cons of this decision.

How To Reduce Rates For Teens On Their Parents’ Car Insurance

Teens are expensive to insure, especially teen boys. This is because they tend to engage in reckless driving behavior more often, which means they are rated as a higher risk group by insurance companies.

While they may have faster reflexes than their adult counterparts, teens are less experienced behind the wheel and generally have poorer risk-assessment skills.

If you’re a parent with teens on your policy, however, there are ways to reduce your car insurance costs, and certain providers offer more discount options for young drivers than others. State Farm, for example, offers a program called Steer Clear^® that teaches teens safe driving practices and monitors driving behavior. The program is available for drivers under 25 and can reduce insurance premiums for those who complete it.

If you currently have a teen on your policy, be sure to ask your auto insurer about the following discounts.

Car Insurance Discount	Details
Good student	Students with good grades may be eligible for discounts. Providers including Geico, Liberty Mutual, Progressive, and Travelers offer savings for students with a B average or higher.
Student away at school	Your car insurance company may offer a discount if your child is attending college at least 100 miles from home. This discount typically applies during the months your child lives away and doesn’t have access to your car.
Safe driving	You can get a discount for having no insurance claims or traffic violations within a certain time frame.
Usage-based	Many providers offer programs that monitor your driving and reduce your rate for driving safely.
Low mileage	If your teen doesn’t drive often (say just to school and back), they may be eligible for a low-mileage discount.

How Long Can You Stay On Your Parents’ Car Insurance?: Our Take

You can stay on your parents’ car insurance as long as you live at their address and don’t own your vehicle (meaning the car you drive is registered in a parent’s name).

But if you have a different permanent address, or purchased your own car and have the title in your name, you’ll need to get your own car insurance policy.

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Our Recommendations For Purchasing Your Own Car Insurance

If you’re a young driver who’s decided to purchase your own insurance policy, get free quotes from different companies to see which is the best option. Car insurance rates can depend on many factors, including your age and driving history, so you may find that some providers are better for you than others. We suggest including Geico and USAA in your search.

Geico: Best For Basic Coverage

We recommend Geico as a top choice for teenage drivers. The company’s rates are generally inexpensive, and it offers add-ons like roadside assistance and rental car reimbursement. Geico has a long list of discounts that can apply to teens, including:

Good student discount
Good driver discount
Air bag discount
Seat belt use discount
Defensive driving discount
DriveEasy program

Read more in our comprehensive Geico review.

USAA: Best For Military Members

In our USAA auto insurance review, we found this provider to be a good choice for teenagers who qualify. USAA is only available to active duty and retired military members, and their spouses and children.

The company offers numerous insurance discounts, including the following:

Good student discount
Multi-vehicle discount
Safe driving discount
Driver training discount

We highly recommend USAA, as it has some of the lowest average premiums and best customer satisfaction reviews.

How Long Can You Stay On Your Parents’ Car Insurance?: FAQ

Below are a few frequently asked questions about staying on your parents’ car insurance.

Can I stay on my parents’ car insurance if I move out?

No, you’re usually only covered by your parents’ car insurance while you live with them. Most insurance companies will make an exception for college students who only live with their parents during the summer months.

Can a married child stay on their parents’ car insurance?

Car insurance usually extends to members of a single household. So as long as you’re still living with your parents, you can still be included on their policy. If you have your own vehicle in your name, you will need to purchase your own auto insurance policy.

How do I get off my parents’ car insurance?

If you move out of your parents’ home and need to be removed from their policy, have them notify the insurance company. They will need to show that you’re no longer living in the household and no longer drive the covered vehicles.

At what age do you have to get your own car insurance?

There’s no age cutoff for being covered under someone else’s car insurance policy. As long as you live with your parents and don’t have your own coverage, you’ll be included on their car insurance as a driver.

Can I stay on my parents’ car insurance after 26?

Yes, you can stay on your parents’ car insurance policy as long as you live with them, regardless of your age.

How We Rate Auto Insurers

Our review team extensively researches auto insurance providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:

Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
Availability: Insurance companies that offer wider availability to consumers in terms of state availability and few eligibility requirements are more likely to meet consumer needs.
Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
Pricing: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer a smooth experience.
Technology: Providers with an online quote tool, easy-to-use claims app and a usage-based insurance app score best in this category.

*Data accurate at time of publication.

Dash Lewis Content Writer