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 Reviews.com.

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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Family Car Insurance

You may be able to use your parents’ auto insurance policy to insure a car that’s in your name if you still live at home. Your driving record, living situation and vehicle are all factors that the insurance company will consider.

It’s not uncommon to remain on your parent’s policy until a child moves out on their own. Take a look at the common situations and limitations below and then be sure to enter your zip code above to find and compare free car insurance rates online!

There are a number of situations where you might be able to use your parent’s insurance to cover a vehicle that is in your name. Your parents and will need to check with their insurance agency as the policy differs from company to company.

College students, adult children living at home, and teenage drives will have to consider numerous factors.

Minimum Requirements to Consider

A few factors may determine the outcome of whether or not your car can be insured under your parent’s policy. One of the deciding factors in many states is whether you are under the legal age for the area. Certain states require you to be of legal age (usually 18 and older) in order to acquire your own insurance policy. If you are under the legal age, you very well might need to be listed on your parent’s policy or at least have them sign for you. This is good news if that is what you desire to do.

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When You Can’t Put a Car in Your Parent’s Name

If you take out a loan on a vehicle then the law states that that vehicle must be in your name. This is called the Lien Holder’s Indemnity Clause. It protects the lender. So you may want to consider buying an older vehicle that you can pay for in cash if you want to remain on the family policy.

It’s another matter if you have your parents co-sign for your car. If your name, as well as your parents’ names, appears on the title for the car, then your parent(s) may be able to put the vehicle under their own insurance policy. If you are living in your parent’s household, or if you are a student in high school or college, then you might be able to insure your car under their policy as well, since you are still considered a dependent. (No one in the young adult phase wants to think of themselves as a “dependent”, but it may very well save you and your parents a lot of money on car insurance.

Your driving record and the car you drive will all factor into your parent’s insurance company’s decision about whether or not they want to cover you. By avoiding tickets and driving a safe car your chances will increase. Also, if you are a student with good grades many providers will offer a discount as good grades are correlated with responsibility.

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Avoid the Worst-Case Scenario

If you do have your car insured under your parent’s insurance, make sure that you are listed as an insured driver on the policy. If you fail to schedule yourself as an insured driver of a vehicle under your parent’s policy, then it may be considered insurance fraud, and any claims you make may be denied.

Wouldn’t it be terrible if you were involved in an accident in your cherry red car and you had to pay out-of-pocket expenses? Worse yet, what if your dream car was totaled, and your claim denied by the insurance company! You would have to start taking the bus again, and bumming rides from friends. No one wants to have to be reduced to that scenario if at all possible!

Having your car insured under your parent’s auto policy is likely to save you money, since car insurance is higher for a new policyholder with no established driving record. It usually takes about three to four years of accident-free driving experience for rates to drop. Once you have a good amount of driving experience under your belt, and a few years have passed, then statistically speaking, you are less of a risk to the insurance company. Once they lower rates, and you are out on your own, you can look forward to having your own policy. Paying for car insurance—oh, the thrill of adulthood!

If your ultimate goal for having your car insured under your parent’s insurance is to save money, you can look into things such as the good student discounts, as well as other discounts for anti-theft devices and defensive driving courses. Whatever you decide to do, you must make sure that your new car is legally covered.

If your parent’s policy won’t cover you a quick search with a car insurance rate quote tool will give you names and quotes from insurers that will offer coverage. Enter your zip to start now!