Unlike with health insurance, there is no specific age in which children must be taken off of your auto insurance policy. As long as your child lives under your roof and drives your vehicles, he/she can (and should) be under your policy.

The timing of taking your child off of your auto policy will vary from family to family depending on your preferences. Here are the top five reasons children are taken off of their parent’s policy.

  1. Your child turned 18. Now that they are officially an adult (at least in the eyes of the government) they can carry their own insurance and you are removed of your liability. Keep in mind that if your child is still financially dependent, you may want to keep them on your insurance until they are financially independent.
  2. Your child is 18 or older, and has a bad driving record. Too many speeding tickets or accidents can leave a negative impact on your insurance policy. Having your child get their own policy can protect your rates from their mistakes.
  3. Your child buys a car titled in their own name. The registered owner of the vehicle largely determines whether or not the child can be on your policy. If the car is registered to your child, he/she will need their own policy. If the car is in your name (or co-signed), you have the option to keep them/her on your policy. Long story short, whoever is titled as owning the vehicle needs to insure the vehicle.
  4. Your child wants to establish credit. The sooner your child can start building their credit, the better. When I went to purchase my first house with my husband, neither of us had established credit which caused many headaches. This is definitely something I will encourage for my children to set them up for success! Having bills in his/her name will not only encourage financial responsibility, but it will start that credit record early so they will be established when they go to make large purchases.
  5. Your child moves out. When your child moves out of your house, it is time they get their own policy. However, this can be a little tricky if they are moving off to college. If they are not taking a car, they can stay on your policy in many cases. We highly recommend that you discuss your particular circumstance with your Miller-Schuring Agent to determine the necessary coverage for your situation.

Determining when your child gets his/her own policy is a gray area and up to interpretation. Give Miller-Schuring Agency a call to discuss what will work best for you and your family. We can help you navigate the gray area so everyone wins!