If you’ve been insured under your parents’ car insurance policy for years, the process of getting your own insurance can seem daunting. However, with some preparation and research, you can securely make the transition from your parents’ policy to having your own coverage.
Why You May Want Your Own Policy
There are a few key reasons why obtaining your own car insurance separate from your parents is a good idea
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Independence – Being on your own policy establishes your independence and financial responsibility as an adult
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Rates – Once you’re older with a good driving record, you may qualify for cheaper rates on your own policy rather than a family policy.
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Coverage control – With your own policy, you decide what coverage options work best for your needs rather than relying on parents’ choices.
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Establishing credit – Having an insurance policy in your name helps build your credit history and score.
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Marital status – If you get married, you’ll need to obtain joint or separate policies rather than relying on parents’ insurance.
While staying on a parents’ policy can sometimes be cheaper initially, the benefits often outweigh costs of getting your own insurance.
How to Start the Process of Getting Your Own Insurance
Once you decide it’s time to get your own car insurance, follow these key steps:
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Make sure the car title and registration are in your name only – insurers require this to issue a policy.
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Gather details insurers will need like driver’s license, VIN, mileage, insurance history.
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Shop around! Compare quotes from various insurers to find the best rate.
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Choose appropriate coverage levels to protect yourself adequately. Don’t just default to state minimums.
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Inquire about any discounts you may qualify for like safe driver, good student, antitheft devices.
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Review policy thoroughly and make sure proof of insurance card is provided.
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Notify your parents’ insurer once your solo policy is active so they can remove you from their policy.
Factors That Impact Your Solo Insurance Rates
As you shop for your own car insurance, insurers will assess several factors to determine your rates and eligibility. These include:
Driving Record – Tickets, accidents, violations resulting in claims will increase your premiums. A clean record saves you money.
Your Age – Rates are higher for teens and young adults, decreasing once you reach mid-20s assuming a good record.
Vehicle Type – Insuring a sports car or luxury vehicle costs more than a standard sedan.
Gender – Statistically, young males pay more than females in the same age range.
Credit History – Insurers use credit-based scores to set rates in most states. Poor credit equals higher premiums.
Location – Your area, urban versus rural residency, commute distance and other factors related to where you live impact price.
Coverage Levels – Minimum liability versus full coverage with high deductibles makes a cost difference.
Shopping around helps find the best rate based on these criteria. Don’t just default to the same insurer as your parents.
Reviewing Recommended Coverage Options
When establishing your own insurance policy, here are key coverage options to consider:
Liability – Covers injuries or damage you cause to others. Required in all states but increase limits.
Comprehensive – Protects against non-collision damage from weather, fire, theft and vandalism.
Collision – Repairs your vehicle from any accident damages regardless of fault.
Uninsured motorist – Covers injuries if you’re hit by a driver with no insurance.
Gap insurance – Pays difference if car is totaled and loan balance exceeds value.
Rental reimbursement – Provides funds for a rental car during repairs.
Review limits and deductibles to find optimal balance of premium costs versus sufficient coverage for your situation. Don’t just default to minimums.
Tips for Saving on Your New Solo Policy
Here are great ways to save when buying your own insurance policy:
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Ask about discounts like safe driver, defensive driving courses, good student, affinity groups, antitheft devices.
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Raise your deductible to lower premiums.
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Drop collision/comprehensive on older cars worth less than 10 years of premiums.
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Compare rates from a variety of insurers in addition to your parents’ provider.
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Limit covered drivers on policy to just you.
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Pay premium annually rather than in monthly installments to save on fees.
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Maintain good credit history to keep credit-based insurance scores favorable.
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See if usage-based programs that track driving habits can earn you policy discounts.
The process of getting your own car insurance policy apart from your parents can seem complicated but is easily manageable by shopping around, comparing rates, and buying optimal coverage. With the right preparation, you can make the switch smoothly and start building your insurance history independently.
Can I stay on my parent’s car insurance even after I’m married?
Adult children can stay on their parents’ car insurance policy even after they get married, as long as they meet certain requirements, like living at the same address or being financially dependent on their parents. If you and your spouse move out, you’ll need to secure your own coverage.
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When do you have to come off your parents insurance
How can I switch off my parents car insurance?
How can you switch off your parents’ car insurance? You can switch off your parents’ car insurance by purchasing an insurance policy in your own name and then asking your parents to remove you from their policy. You’ll generally be required to switch off your parents’ car insurance if you move out, though college students may be an exception.
Can I Stay on my parent’s car insurance?
You can stay on your parent’s car insurance if their home is still your primary residence. Even if you take your car to school with you, you can typically stay on your parent’s policy as a dependent. Some insurance companies offer a Student-Away-at-School Discount 1 for parents with students away at school and only occasionally drive their car.
Can I be on my parents’ car insurance if I move out?
Depending on your insurer, you can remain listed as a driver on your parents’ policy as long as their home is your permanent address or you’re a full-time student. Once you’ve permanently moved out, you’ll likely need to obtain your own car insurance policy. Can I be on my parents’ car insurance if the car is in my name?
Do I need a car insurance policy if I live with my parents?
This applies to all ages of children, whether you’re an 18-year-old high school senior, a 35-year-old living with Mom and Dad, or a 50-year-old supporting aging parents. In fact, if you live with your parents, you may be required to be listed on their policy, even if you have your own policy or don’t drive.