Marissa Hayes is a technical editor and contributing writer. She holds a Bachelor’s Degree in history, and she was the editor of the literary magazine, The Bluestone Review.

Full Bio →

Written by

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

Full Bio →

Reviewed by Daniel Walker
Licensed Car Insurance Agent

UPDATED: Jan 26, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

The Short of It

  • There is no fixed time for how long can kids stay on their parents' auto insurance policy
  • Auto insurance for young drivers is very expensive so it makes sense to keep them on an adult's policy
  • Once the child is financially independent, has a car in their own name, or gets married, they need a separate policy

Auto insurance coverage for young drivers is very expensive, leading parents to look for the cheapest way to make sure their child is covered. Usually, that means adding the child to their car insurance policy.

But, just how long can kids stay on their parents' auto insurance policy? Keep reading to learn if there is a time limit and when kids should have their own policy.

Whether you are looking to buy teen driver auto insurance or add them to your current policy, enter your ZIP code to compare quotes for the best deal.

How long can a child stay on their parents' auto insurance?

Unlike with health insurance, there is no set time limit for how long kids can be on their parents' car insurance. Many different factors will determine if a child needs his or her own auto insurance policy.

Let's take a look at some of the common scenarios that affect whether or not a child needs an individual policy:

  • Moving out - Can I stay on my parents' car insurance if I move out? This answer depends on the circumstances. If you move out for college, even out of state, but leave your home address the same, you can stay on your parents' insurance. However, if you are financially independent and have your own residence, you will need your own auto insurance policy.
  • Registering a car in your name - Can I be on my parents' car insurance if the car is in my name? Generally, car insurance companies want the name of the policyholder to be the same as the owner of the car. If you are listed as a co-owner, you can still be on your parents' auto insurance.
  • Getting married - If you get married, you will be considered on your own and will need your own car insurance policy. The good news is that many auto insurance companies offer a discount for married couples.

Each car insurance company has different criteria for when a child needs his or her own policy, so it's best to speak with your insurance agent. They can help you determine the best way to handle your car insurance needs.

What are the benefits of kids staying on their parents' auto insurance?

Price is the main benefit of keeping kids on their parents' car insurance policy since young drivers pay much more for insurance. The average cost of auto insurance for a teenager is $691 a month.

Teenage boys paying the highest rates, although, teen girls also pay a lot for car insurance.

The CDC reports that the death rate for teenage male drivers is almost twice that of female teenagers. Auto insurance companies know that so they charge teen drivers, especially males, much higher rates.

Another factor to consider is that even though the child doesn't have an individual policy, insurance history is still being built. This will lead to lower car insurance rates down the line.

When is it best for kids to have their own auto insurance policy?

Sometimes it just makes sense for the family if the child has an individual policy.

The main reason for this is generally poor driving history. Common risk factors include multiple accidents, tickets, or DUIs. If a driver has any of these, the family car insurance rates can skyrocket. It may be best to get the child their own policy to keep family rates lower.

Also, once kids graduate from college, auto insurance needs can change. If they are becoming independent, it might be a good time to reevaluate your situation.

Speak with an insurance agent to determine the best route for your individual needs.

Compare Quotes From Top Companies and Save

 Secured with SHA-256 Encryption

What are ways for young drivers to save money on auto insurance?

Car insurance discounts are a great way to save money. Good student discounts are available for students if they have a certain GPA. Also, if your student attends college more than 100 miles away and doesn't take a car, you can drastically lower your rates.

The best way to save money on car insurance is to shop around. Every car insurance company determines rates differently so compare quotes from multiple companies to find affordable young driver car insurance.

Enter your ZIP code now to compare quotes for parents with kids on their auto insurance and find the cheapest rates.