What You Need To Know About Having Car Insurance On A Parent's Policy
Posted on: 31 August 2016
When you are a teenager and first start driving, you have two options for getting your car insurance. You can apply for your own policy, or be added to the one your parents have. Here is what you need to know about the being added to your parent's existing policy.
It's Cheaper
It will be cheaper to add yourself to an existing policy that your parents have. Auto insurance companies will consider a new teenage driver a high risk, so the rates will naturally be higher for solo policies. However, adding another car or driver to an existing policy will not cause the rates to go up as much. Typically, there are multiline discounts that help reduce the premiums slightly when adding additional coverage.
In addition, adding onto your parent's insurance policy will let you take advantage of their insurance history. If your parents are safe drivers that do not get into accidents or receive moving violations, you could benefit from that with a cheaper rate. When the time comes to finally get your own insurance, the insurer will take your entire insurance history into consideration.
You May Get Kicked Off The Policy
There are several reasons that could cause you to lose coverage under a parent's policy.
Moving Out of the House
Adding onto a policy is only possible for members in the same household. If you are moving away from home and update your driver's license, your insurance company will find out and remove you from the policy.
Unlike health insurance, there is not an age cutoff for when you will be removed from an auto insurance policy. As long as you live in the same house as your parents, it's possible that you're sharing the same cars as your parents, so it's reasonable to keep you on the policy.
You Become A Driver That Is High-Risk
If you are frequently getting into accidents or receiving speeding tickets, your insurance company could view you as a high-risk and drop your coverage. This can also happen for serious offenses, like a DUI.
Your Parents Remove You
Know that your parents always have the option to remove you from the policy. This may be an incentive to be on your best behavior when driving, because your parents may decide to take away your cheaper auto insurance as a lesson for poor choices that you make.
For more info on auto insurance coverage under a parent's policy, speak to an insurance agent like The Blondin Agency Inc - Nationwide Insurance.
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