Sure, staying on your parents’ car insurance has benefits.  After all, many teens and drivers under 25 can usually save money on premiums by sticking to their moms’ and dads’ policies.

However, there are some situations where sticking to your parents’ policy may no longer make financial sense or may not even be allowed. Check with your Westwood agent to find the best option for your circumstances, especially if one of these situations is true for you.

Moving out

Depending on why you’re moving out (if it’s a temporary situation or more permanent), you may be able to stay on your parents’ auto insurance policy as a listed driver. This will apply if you’re headed to college or traveling with one of your parents’ cars.

However, if you move to your own place and buy your own vehicle that’s not in your parents’ name, you’ll typically have to buy your own policy. Insurance companies sometimes say that once you have “care, custody, and control of the vehicle,” such as keeping it at your own home or property you rent in your name, you must have your own policy.

Getting married

Getting married doesn’t automatically mean you should leave your parents’ policy. If you and your spouse live with your parents and drive their vehicles, it makes sense to remain on their auto insurance as listed drivers.

The sticking point is if you and your spouse don’t live at the same residence as your parents. Insurance companies generally allow all drivers with the same permanent residence to be listed on a policy. Still, if you live in a separate location from your parents, you’ll need your own policy. The bright side is that being married may qualify you and your spouse for discounts, including bundling your auto insurance with other policies like your homeowners or renters.

Buying a car

If you’re buying your own car, your ability to stay on your parent’s policy can vary depending upon the state you live in and your insurance company. If you live in the state of New York, for example, then by law, the name on the vehicle registration must match the name on the insurance policy.

Some insurance companies also require the name on the registration or title to match the name on the insurance policy, regardless of the state you live in, so be sure to check with your Westwood agent if you’re looking to buy a new car and also hoping to stay on your parents’ policy.

Building financial independence

As you’re building your financial independence, it may be good to weigh your options when deciding between remaining on your parents’ policy and buying your own. Having car insurance can protect your assets and shield you from financial liability if you damage third-party property or your vehicle is stolen.

Taking charge of your policy can give you more control over your financial planning and protect the investments you’re building. You can make decisions about deductibles, endorsements, and the amount of coverage you buy to cover any circumstances that may apply to you. This may also open you to more potential savings customized to your situation, such as mileage-based discounts or policy bundling savings.

Ultimately, the decision to remain on your parents’ auto insurance policy can vary depending upon your circumstances, where you live, and the insurance company your parents are currently using. Fortunately, your Westwood agent can help you navigate these different factors and find the best option for you.

Please Note: This article is for general informational and educational purposes only. It does not represent any specific insurance policy and does not modify any provisions, limitations, or exclusions of any current policy.