The question of whether an adult child can be covered under a parent’s auto insurance policy is an interesting one and the answer is that it depends on the circumstances. If the adult child is living in the parent’s home and does not own his or her own vehicle, then they can be insured under a parent’s auto insurance policy as an occasional driver.
An adult child who is living with a parent and owns his or her own car will need to have his or her own auto insurance coverage in place. The adult child who is no longer living at home will definitely need to buy a new policy designating him or her as the primary driver.
When a teen or young adult living at home gets his or her license for the first time, it’s very common for that young drivers to be added to the parent’s existing auto insurance policy. This is an economical way for them to get the coverage that they need. The cost of buying a new policy with a teen or young adult driver as the primary person being covered is very expensive. This arrangement can stay in place as long as the young person is still living at home and that includes the years that he or she might be away from home attending college or university.
When a teen member of the household is old enough to get his or her driver’s license, the parent should make a point of shopping around to get quotes from different auto insurance providers. Since each company sets its own rates for coverage, the cost of buying the same type and level of protection can vary significantly between providers. Some companies charge much less to take on the risk associated with insuring a brand-new driver and taking the time to find out how much different companies will charge for coverage is a way to keep costs down.
Before changing auto insurance companies, the parent will need to provide some information about all the drivers in his or her household including how long each person has been licensed, and whether they have been involved in any accidents or accumulated any moving violations within the past in years.
In a situation where a student is away at university for part of the year and will not be driving during that time, the parent should let the insurance company know. It’s possible that the parent could get a discount on his or her coverage because the student will be away from home and not driving for a good part of the year. The parent should contact the insurance company directly to see if they offer this type of price break.
A number of auto insurance companies also offer discounts to students who do well in school. A person who is able to maintain a B average may be entitled to a good student discount, which will help to bring lower the cost of auto insurance coverage.