Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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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

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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Yes, an auto insurance policy can be in your parent’s name in many situations. However, there are a lot of things to consider before taking this option.

In addition, there are other circumstances where an adult can have an insurance policy in their parents name as well, and this article will address those situations as well as situations where you can’t have a policy in your parent’s name.

Read on and learn more about this often-asked question.

Read on to find out more about having a car insurance policy in your parent’s name and  be sure to enter your zip code above to begin comparing auto insurance rates!

Getting a Policy in Your Parent’s Name

Whether you are a child or an adult, getting auto insurance on a registered vehicle is required by law in every state. The question that often comes in when it comes to auto insurance for a teen is whether or not a policy should be in the teen’s name or the parent’s name, and if having it in the parent’s name will save money on the policy premiums.

First of all, if a vehicle is registered in the name of the parents, then the insurance has to be in their name as well. It doesn’t matter if the vehicle is for a teen or another adult driver. The key here is listing the primary driver of the vehicle. When you purchase the insurance, you can list your teen, or another driver, as the primary driver of the vehicle. If the car is in the child’s name, then the insurance has to be in their name as well.

If you are looking for a way for your parents to drive a vehicle that you own, then all you need to do is add them as additional drivers on your car or truck with you as the primary driver. You must include any people who will regularly drive your vehicle on your policy or you may be in violation of the terms of your policy. Most insurance policies will cover your vehicle if someone else is driving and an accident occurs. You should check your policy before allowing a friend to drive your vehicle; in most cases, this coverage is only valid for someone who doesn’t regularly drive your vehicle.

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Does Having an Adult on the Policy Keep the Rates Down?

The increased cost of auto insurance on a vehicle because of a teen driver is a tough pill for many parents to swallow. The truth is that no matter how good of a driver the parents are, once a teen is added to a policy, the insurance rates are going to increase. In addition, if the teen is listed as the primary driver, then the rates may double or triple in price.

The reason for this is simple; teens cause the most auto accidents in the US. This is true in every state, which is why it costs so much to insure them. It isn’t until the age of 25 that you will see a significant drop in insurance costs (although the rates do drop a little bit at 20, but not significantly).

There are some states that require strenuous driver training and proven hours on the road before they will issue a driver’s license to a teen. In addition, some states also require that the teen take defensive driving courses to improve their driving ability. These things actually help to reduce the overall cost of auto insurance for your teen.

How to Save Money When You Have a Teen Driver

One of the most common questions a parent asks their insurance agent when they have a teen driver is how to save money. With a tough job market, a tough economy and an uncertain future, most people want to save money any way that they can. Fortunately, there are some ways to save money.

The first thing that you should consider is not allowing your teen to drive your vehicle at all. Now, don’t get riled up, this does depend on what type of vehicle that you have. If, for example, you drive a 2010 Dodge Caravan, then don’t add your child to your policy. Why? Because your rates will increase a lot more than if you drive a 2004 Dodge Caravan.

The reason for this is that an older vehicle costs less to insure in the first place. When you put a teen that is considered a very high-risk driver, behind the wheel of newer car, the insurance company is only thinking about the risk scenario. If 50% of accidents are caused by teens and a teen is driving a $30,000 vehicle, then the risk has a higher monetary value than if the vehicle costs $4,000. The insurance company is going to take that into consideration.

In addition, you probably have your new Dodge Caravan fully insured with comprehensive and collision coverage and your 2004 Dodge Caravan probably only has your state’s minimums. The cost of these two types of coverage differs quite a lot as well.

If you have a newer vehicle, it is highly recommended that you purchase a second vehicle for your child to drive; and not a new one either. By ensuring that your child is excluded from the policy of your high-dollar vehicle, you are going to save money. If you can, find an inexpensive and safe older vehicle for your child to drive that won’t require you to carry a comprehensive policy.

Adding a second vehicle to your policy will also garner you a discount from your insurance company. While your teen’s insurance is going to be higher than if you were buying liability insurance for yourself, it will still be less expensive using this method.

You may also want to consider putting stipulations on your teen driver. For example, most insurance companies offer a discount for teen drivers with a good academic record. Most companies require students to make As and Bs to qualify. Make it a requirement for your teen to maintain this average in order to drive. You may also want to require them to get a part time job to pay their portion of the insurance so that you don’t take on the financial responsibility for their driving; this may also help them to be safer drivers as they are taking part in the cost of driving.

Lastly, saving money means looking for the best value for your auto insurance policy. To do this, you must get insurance quotes before you buy. Even if you already have an insurance company, before you add another vehicle or another person to your policy, you should get a quote first.

Many people assume that they already get the best rates from their insurance company because they are long time customers; this isn’t necessarily the case. In addition, other people think that it’s too much trouble to get quotes and it is so easy to call their agent and tell them to add someone on. The thing is, getting a quote isn’t difficult and it isn’t time consuming; it’s actually fast and easy.

Compare Auto Insurance Quotes Now!

At the top of this page, you will find our free quote tool. Once you have answered a few questions about who is driving your vehicles and tell us a little bit about your driving record, we will get you quotes from multiple companies. If you have a well-known company, you may see their name among the quotes. You may also find that you are paying more currently than you should be and they may quote you a lower price. Don’t assume you get the best rates; use our free quote tool to find out for sure. You can use it today and start saving money right now!