Obviously, I am not a financial planner so please do your due diligence and do not take this article as financial or legal advice.
Having a car insurance is always a must! Not only is it a legal necessity, but it also provides car owners with a lot of advantages. Any accident, big or small, your car insurance can cover the repair expenses (within the coverage levels, of course). This means that by paying a relatively small amount of premium, you can claim insurance for big damages to your car.
However, with families having grown up children and multiple cars, paying premium for every single vehicle can be pretty expensive. Especially for children living off their own, the burden of paying insurance premium can be very stretching. After all, their part-time jobs only pay so much!
The smartest solution for such situations is to keep children included in the household vehicle insurance policy. This way, they will have to pay smaller premium amounts while getting just the same benefits.
How long can you stay on your parent’s car insurance?
The answer is – as long as they would allow you to!
Yes. You can live off your parent’s car insurance even in your twenties. But don’t be too quick to pester your parents about putting you under their insurance policy. You should have some good reasons and you should give them the option to say no.
After all, it’s their money! Besides, there are also some legal considerations.
You should fulfill some basic criteria of the insurance company that essentially classifies you as your parents’ dependent. These include:
- You should be living full-time or part-time at your parent’s house. Even if you are studying in another city, going back home every vacation will count!
- The vehicle driven by you should be owned by either of your parents. You cannot use your parent’s insurance if you are the listed owner of the car.
- Your name should be added to the family insurance policy. Till that is done, you aren’t legally entitled to drive your parents’ vehicle and thus, aren’t entitled to use their car insurance either.
- If you are able to fulfill these three conditions along-with any specific requirements that your insurance company asks for, you can conveniently use your parent’s car insurance.
A Word of Caution
There is a word of caution for the parents allowing their children to use their insurance though. You should know that as young drivers, your kids might act a little reckless and can get into quite a few accidents. If they do so while using your insurance, you are legally bound to take the responsibility of the same. This can cost a lot!
Also, if your children are unable to pay the premium of their vehicle due to whatsoever reason, you will again be obliged to pay off the dues of the insurance company. That is why, it is always advisable to let children use your car insurance only if you think that they are responsible enough and won’t land you into trouble!