Can my car insurance be in my parent’s name?

UPDATED: Jul 27, 2010

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UPDATED: Jul 27, 2010Fact Checked

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Asked July 27, 2010

1 Answer

Not only can your car insurance be in your parents name, there are very good reasons for young drivers to use that approach. There are restrictions and limitations to how long you can be covered on your parents insurance, though, including giving up the ownership of the vehicle, or at least agreeing to share it.

Insurance companies will only insure a vehicle that they can show an insurable interest on. For that reason, you must either be a qualified dependent in your parents' home, or they will have to share in the ownership of the vehicle registration. Additionally, you can only be listed on your parent's insurance policy until you are 25 years old, and you must either live in the same home or have a residence in another location for practical reasons, such as attending college.

For new drivers, it is better to have yourself added to your parents insurance than to purchase your own in most cases. Young drivers are considered a high risk by insurance companies, but the risk is mitigated by the fact that the person is still dependent on other relatives, and is therefore less likely to drive as often or as far.

Once you graduate college or move out on your own, you will have to get your own insurance policy and update the registration to reflect your new location. You can still be listed on your parents insurance as a possible driver of their vehicles, but their policy will not extend to your new residence.

Answered July 27, 2010 by Anonymous

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