When to take your child off your car insurance policy.
For many teenagers, the cost of buying car insurance on their own may be more than their summer jobs can handle. That’s why many parents add them to the family insurance, where the expense is much less than if a teenager bought his or her own coverage. However, at some point, your children should be taken off your policy and work on getting their own coverage. But when is the right time?
- Living arrangements
Before taking your child off insurance, you should examine the legal aspects of your decision. For example, most insurance companies will require that you list all household members on your car insurance policy, including your child. If your house is listed as your child’s primary residence, then he or she should be on your auto insurance policy. Even if your child is as college, he or she may still consider the family home as their primary residence. What’s more, they may come back and want to drive the family car, making insurance necessary.
If your child moves away from home, he or she will be unable to stay on your auto insurance policy and will, therefore, need to get their own policy.
- Upper age limit
There is no upper age limit when it comes to keeping children on a parents’ car insurance policy. Unlike health insurance, which as a 26 cut off, a child can stay on their parents’ car insurance for as long as they want, as long as they meet the criteria for eligibility.
You may want to talk to an independent insurance agent to understand what suits your situation best. For reliable and affordable auto insurance coverage, contact the professionals at Lou Aggetta Insurance Services.