Fausto Bucheli Jr


December 9, 2022

Edited By

John Davey

Is It Possible To Stay On Your Parent’s Car Insurance Policy If Your Car Is In Your Own Name?

Buying and owning your first car can be really exciting. Finally, you’re at an age where you have the freedom to come and go as you please using your own wheels.

But the cost of car insurance can be a bit daunting, which is why you may be wary of getting your own car insurance policy.

The truth is that typically, car insurance is more expensive for anyone under the age of 25.

This is because a car insurance company will see a younger, less experienced driver as a higher risk to insure.

Car insurance companies will weigh up different factors within your unique driving profile when determining the premium for your own auto insurance policy.

If you are the new owner of a car, you may be wondering whether you can stay on your parent’s car insurance policy.

In this article, we are going to cover when you can stay on your parent’s auto insurance and whether you can still do so if you have a car registered in your own name.

How Long Can I Stay on My Parent’s Car Insurance Policy?

In most cases, you can stay on your parent’s auto insurance policy if you are living at home and driving their car.

Unlike health insurance, there is no age limit that will prevent you from staying on your parent’s car insurance policy.

If you do decide to move out permanently, then you will need your own car insurance policy.

It’s important to be truthful about whether you are living at home with your parents or on your own. Insurers may withhold cover if there are any discrepancies in the information you provide to them.

When Can You Be on Your Parent’s Car Insurance Policy?

Staying on a parent’s auto insurance policy is a great option for young drivers. This is because they will qualify for lower car insurance rates than if they had their own policy.

Let’s take a closer look at the instances where you can stay on your parent’s car insurance policy.

You co-own a car with your parent

If you co-own a car with your parents, then most insurance companies will allow you to stay on their car insurance policy.

The reason for this is that the insurance company will see you as less of a risk to insure.

Your parents will already have a driving history that the car insurance company can rely on, plus they are older and have more driving experience.

Another reason is that your parents will most likely be sharing the car with you, which means that you may not be the sole driver of it.

Your parents own a car and you still live with them

If your parents own the car that you drive and you live with them, you will be able to stay on your parent’s auto insurance policy.

This will also apply if you are married and are living at home with your parents.

Similar to the instance we’ve mentioned previously, insurers will see you as less of a risk as you will likely be sharing the use of the vehicle with your parents—who already have a driving history and a profile with the insurer.

You are a student and you drive your parent’s car when you come home

If you only drive a car when you come home from college to visit your family and friends, then you can stay on your parent’s policy.

This scenario is typically referred to as ‘permissive use’ by car insurance companies.

This is because your use of the car will be limited while you’re at home, and the vehicle is likely to be driven by your parents most of the time.

You move out, but you live in a home that is owned or rented by your parents

If your parents rent or own a home that you will be living in, you can stay on their auto insurance policy.

This is because you will still be considered by the insurer to be financially dependent on your parents.

Interestingly, it is often also possible to save money on insurance by bundling different policies.

In other words, your parents may bundle their home insurance—including the property you are staying in—with their car insurance.

When Can You Not Be on Your Parent’s Auto Insurance Policy?

There are many different instances when you will need to get your own insurance policy. Typically, this is when you no longer live with your parents and have the vehicle registered in your name.

It’s important to note that each insurance company has its own definition of what a ‘dependent child’ is.

This means that in some cases you will be able to stay on your parent’s insurance policy after all, which may differ from what we’ve mentioned in this article thus far.

The best approach is to speak to an insurance agent about your situation and see what they recommend.

Ultimately, you will need your own insurance policy if you are not living with your parents.

You must also remember to be honest with the insurance company about where you live and the distance you drive.

Suppose you omit any information when requesting auto insurance rates—in that case, you run the risk of not only receiving an incorrect quote, but also being denied coverage due to providing inaccurate information.

There are specific instances in which you cannot be on your parent’s car insurance policy. Here are the reasons why:

You own your car

As we mentioned above, if you own your car and it has been registered to your name, you will need to get your own auto insurance policy.

This will apply to you whether you:

  • Live with your parents.
  • Stay in a home owned by your parents.
  • Don’t stay with your parents and have a property in your own name.

This is because a car registered in your name will be solely your responsibility to insure.

You are financially independent

Being financially independent means that you own or rent a home—and are not living with your parents or staying in a home that they own anymore—which means that you will need to get your own auto insurance policy.

Generally, your insurance company will see you as more of a risk if you are using your parent’s car, but staying in your own home which you are insuring yourself.

The risk assessment of your new address will differ from theirs and there could be other factors that the insurer will consider when insuring the car.

These factors could include the location of your home and the facilities where your car is parked. For example, insurers may think that the car may be safer at the policyholder’s home, which in this case is your parent’s home address.

Finding cheap auto insurance rates will be your top priority as you will want to keep car insurance costs down.

Fortunately, we make it easy for you to get cheap insurance quotes with our free quote generator. Simply head to the top of this page and insert your zip code to get dozens of quotes customized to your needs.

Must I Maintain My Own Car Insurance Policy If I Move Back Home?

If you are driving a car that is registered under one of your parent’s names and you decide to move back home, you are legally allowed to remain on their car insurance policy.

If you move back in with your parents and bring along a car that is registered and titled in your name, you can decide whether you would like to continue insuring the car under your own name, or switch to insurance coverage under your parent’s policy.

All the drivers of a vehicle that share the same permanent residence and drive the car should be listed on your insurance policy, whether it’s in your name or that of your parents.

Can I Be on My Parent’s Car Insurance If I’m Married?

Should you be married, and you as well as your spouse live in the same house as your parents, and drive their vehicles, you can stay on their insurance policy as listed drivers.

If you or your spouse own a vehicle, you can decide whether you would prefer to insure the vehicle on your own car insurance policy or your parent’s policy.

If you are married and do not live with your parents, you will need to have your own car insurance policy.

How Does Car Insurance Work If Your Parents Are Divorced?

If you move between your parents’ homes and drive their vehicles at each house, they would need to list you as a driver on each of their individual insurance policies.

Similarly, if you live with just one of your parents and use their vehicle, then they will need to list you as a driver on their car insurance policy.

If one of your parents owns the vehicle that you drive, but you live with the other parent most of the time, you will want to talk to the parent who owns the car’s insurer about your options.

What Do I Need to Get a Cheap Car Insurance Quote?

To get an accurate car insurance quote, you will need to provide insurance companies with some personal information.

It’s essential that you provide completely accurate information so that you can not only get the best insurance rate, but also ensure that the insurer will not deny you coverage.

You will need to provide your:

  • Date of birth.
  • Sex.
  • Marital status.
  • Mobile phone number.
  • Email address.
  • Accident prevention course completion date, if applicable.
  • Driver’s license number.

How Can I Reduce My Car Insurance Rates?

The best way to reduce your car insurance premiums if you are young is to ask your insurer about any discounts that they offer.

Good student discounts

If as a student, you maintain a B average, you will be eligible for cheaper car insurance from most insurance providers.

Clean driving record discounts

Maintaining a clean driving record is a great way to ensure that your car insurance premiums stay low.

To maintain a clean driving record, you will need to avoid accidents and traffic tickets.

Key Point: What Is a High-Risk Driver?

A high-risk driver is someone who has a past history of irresponsible driving that  resulted in tickets, accidents, or criminal charges.

Bundled insurance discounts

If you are still living with your parents or are driving their car, you can ask for multi-vehicle or multi-policy discounts which have the potential to significantly lower car insurance costs.

Older vehicle discounts

Your car insurance rates will be lower if you drive an older car. Your car will lose value as it ages, which means that the potential insurance payouts after an accident decrease as well.

With an older car, you can also choose to do away with comprehensive and collision insurance, and just maintain the minimum liability insurance that your state requires.

Key Point: What Is Comprehensive, Collision, and Minimum Liability Insurance

Comprehensive coverage

Comprehensive insurance coverage is optional insurance that protects you financially against any damage to your vehicle caused by non-collision events that are outside of your control.

These damages can include theft, vandalism, glass and windshield damage, fire, accidents with animals, weather, or other acts of nature.

Collision cover

Collision coverage will pay for any repairs to your vehicle, or even the replacement of it, from an accident that involves a collision with an object.

Minimum liability insurance

A minimum car insurance policy will include bodily injury liability and property damage liability coverage. It’s designed to pay for any damages or injuries to another driver following a car crash. This type of insurance does not cover repairs to your own vehicle.

Get Cheap Car Insurance Today with

Having a car in your own name comes with the responsibility of having your own car insurance.

You may feel as though this insurance is going to cost you a lot of money and maybe you aren’t sure where to start looking for cheap car insurance quotes.

Finding a good insurer can be a time-consuming process. Fortunately, we are here to help you find the insurance coverage that you need at the best price.

All you need to do is head to the top of this page and enter your zip code. You will find a wide selection of insurance quotes to choose from.

Once you have an idea of the auto insurance premiums that you could be paying, it will be time for you to contact the insurers that are offering you the cheapest rates to get a formal quote.

Getting car insurance should be quick, simple, and stress-free, and you deserve to get the best insurance rates possible.

At, we’ve got you covered!