It is normal to have children move away from home. However, this can bring up questions such as what to do about car insurance. Should your child want to drive when they are back at home, they will need to have car insurance. However, keeping the child on an insurance policy does cost money. The younger generation has some of the highest insurance rates in the country. Due to this reason, if you want to get car insurance for a child who is not living at home, you will have to pay a decent amount of money for it.

Can I Be on My Parent’s Car Insurance If a Car Is in My Name?

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Having a car in your name does not mean you can’t be on someone else’s insurance policy. You are allowed to be on as many insurance policies as you need to be on. Whenever you drive a vehicle, you need to have insurance for it. Insurance companies can deny you coverage, but so long as you have a clean driving record, it is unlikely that they will. They especially are not going to deny you being put on your parent’s car insurance if you have a car in your own name. This is a low risk to an insurance company since you’re likely going to drive your car much more than that of your parent’s vehicle. Your parents will have to pay a little bit more for their car insurance, but the premiums that they pay should not be raised substantially.

How Much Is Car Insurance for a Child Who Doesn’t Live with You?

You should be able to save a substantial amount on car insurance when paying for a child who does not live with you. Insurance companies usually trust that your child is not going to be using the vehicle on a regular basis. Although the child might raise your premium by as much as $50 to $100 a month, it is unlikely that your insurance premium will be raised much more than this. It does really depend on the driving record of the child that will temporarily be using the vehicle. The cleaner their record, the less you can expect to pay for adding them to your insurance policy.

Should I Take My Child off of My Auto Insurance When They Move Away?

You definitely have the option to take the child off of your insurance policy whenever you want to. However, it is important to make sure that you inform them that you have had them removed from the policy. Should your child drive without insurance, they could be heavily penalized. You will have to pay extra every month for leaving a child on your insurance policy. Your insurance policy will even be higher when the child does not drive the vehicle at all. Your insurance company has no idea when the child is going to be home and driving. It is important to remember, you could always take your child off of your insurance policy and add them back to it if you need to. This could end up saving you some money.

How Long Can a Child Stay on Their Parents Car Insurance?

A child can stay on their parent’s insurance policy as long as they want. There are no limitations on how long someone can be kept on an insurance policy. Insurance companies need to be updated when driver’s situations change. Should your child get a full license or get a different license, you need to update your insurance company. You might even end up being able to get a discount on your insurance policy if you keep your child on your insurance for a long period of time. Doing this simply gives an insurance company more money from you each and every month and if you do this for a long period of time, they might be more inclined to offer you a discount.

How Does Car Insurance Work for a Child with Divorced Parents?

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Car insurance can be somewhat confusing when your parents get a divorce. Usually, when this occurs, your parents will have separate auto insurance policies. In order to be able to drive each one of your parent’s vehicles, you need to be listed on both of their insurance policies. This means that both of your parents are going to pay be paying higher auto insurance premiums to be able to let you drive both of their vehicles. Although this might not seem fair, technically the total amount of auto insurance premiums that your parents are going to have to pay is going to be higher.

Do All Licensed Drivers Have To Have Insurance?

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When you don’t live with your parents, you might wonder if you can get away with just driving with your license. However, all drivers in Canada have to have insurance to be able to drive on the road. Driving without insurance on the road can result in some pretty substantial fines and even a suspended license. Whenever you are in doubt that your insurance policy is covering you, you should always talk to your insurance provider. Whenever you have any questions, make sure that you ask them to your insurance company. It is not worth driving without insurance coverage as there can be some pretty major consequences.

To Conclude

It isn’t exactly ideal to have to pay for auto insurance coverage for your child when your child is not at home. You do have the option to take them off of your insurance policy, however. Keep in mind, they will not be able to drive when they come home if you do, do this. Should you do this, you can always call your car insurance company and add them temporarily to your insurance. This might end up costing you less overall for your car insurance premium. However, every time that your child comes home, you will have to call your insurance company to inform them. It isn’t super convenient, but you could always keep them on your insurance policy if you want to as well. It is really up to you, just make sure that you inform your child about what you are doing.

Resources:

http://www.insure.com/car-insurance/determining-which-drivers-must-be-listed-car-insurance-policy.html
http://thelawdictionary.org/article/can-i-stay-on-my-parents-auto-insurance-policy-if-i-move-out/
http://smartshopyourcarinsurance.com/Blog/?p=557