How long can you remain on your parents’ car insurance?
If you are a younger driver, then remaining on your parents’ auto insurance is likely your cheapest coverage option. However, there are certain circumstances under which you will not be allowed to remain on their policy. For instance, you cannot remain on your parent’s policy when you move out. Here’s why.
Why do I get removed from my family’s policy?
Car insurance is sold per household. This means that your parent’s insurance will offer coverage for all the legal drivers living under their roof. Naturally, once you move away from home, you are no longer considered part of their household. This means you cannot be covered under their insurance.
Are there exceptions?
If you are considered a dependent, you can remain on your parents’ car insurance policy even when you are living away from home. While different insurers define “dependents” in their own terms, you are usually considered a dependent if you are in college and live at home part-time (like during academic breaks) or if you drive a car that your parents own.
Can I pretend?
Technically, your insurer will not know that you have moved out unless you tell them. However, lying about your living situation constitutes insurance fraud and is very risky. If you attempted to file a claim and your insurer found out about your living situation, they have the right to deny you coverage and can even cancel the policy for everyone. As this will affect your whole family’s credibility with insurers in general, it’s safer to just get your own policy.
This is what you need to know about losing your parents’ car insurance after moving out. Do you have additional questions regarding your car coverage? If so, contact the experts at ISU-Wissink Insurance. We are ready to assist you with all your coverage needs today.