Can car insurance be in your parent’s name?
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Asked May 12, 2010
In many cases, it is cheaper for a child to remain on the parent's policy for several years. This allows the person to build up a safe driving record and establish themselves as a responsible part of the community. The qualifying term used by insurance companies is "household," and refers to an extended family living in a single domicile. The exception to this rule is for a child who is enrolled in college or some other temporary living arrangement outside the home, but stills maintains that as their primary mailing address.
For insurance companies, risk is everything. Getting your own policy will be more expensive because you have not yet achieved a level of driving experience or established yourself as a responsible community member. On the other hand, being added to your parent's insurance policy increases their policy risk level, but reduces the total risk to the company, since you are not the only risk being addressed in the policy.
There is not a maximum age for being included on your parent's insurance policy. What matters is that you must be living in the same residence. When you move to a different primary residence, the insurance company will expect you to get your own insurance policy. One reason for this is because your location is a factor in your insurance assessment, and your new location may be lower or higher risk than your parent's location.
Answered May 12, 2010 by Anonymous