When Do My Children Need Their Own Auto Insurance?

Frequently clients have a lot of questions about auto insurance when it comes to their teen and early 20’s aged drivers.  When is it time for them to go on their own policy? 
There are several factors to take into consideration. 
The first thing to look at is WHO lives in the household.  If your child is still in your home, then they can be listed as a driver on your policy, regardless of their age.  If your child is NOT in your household, then they will need their own policy.
We also have to look at who is the titled owner of the vehicle.  If you own the car, you’ll want it on your insurance OR you’ll need to be listed as an Interested Party on your child’s policy.  That means that if they were to quit paying on the policy and it canceled, you would be notified.  As the owner of the vehicle, you could be responsible if it was being driven without insurance. 
If your child is the sole owner of the vehicle, it can only be added to your policy if they still live in your household.
(Some of these rules will vary depending on the age of the driver and if they are away at college or living out of state.) 
This can all sound confusing, which is why we always recommend working with a local agency like ours to go through the details.  We’ll make sure that your policy is setup correctly and that everyone is getting the best possible rate.  Call us today! (479) 632-8888