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

Car insurance is often the first major bill a teenager or young adult takes on independently. Unfortunately, rates for teen drivers are higher than any other age group. This leads many teens to ask, “Can my car insurance be in my parent’s name?” and, “If my parents own my car, whose name is on the ticket?”

Should you put your car insurance in your parent’s name to help minimize costs? We’ve put together a short guide to answer all of your questions. By preparing in advance, you can make securing young drivers’ car insurance as simple and painless as possible.

Whether you plan to put your car insurance in your parents’ name or your own, compare affordable car insurance quotes now by entering your ZIP code into our free tool above.

Should I buy my own car insurance policy or be added to my parents?

A lot of drivers of varying ages ask us, “Can my parents insure my car?” The truth is, you can stay on your parents’ car insurance policy as long as you need to. When should you get your own insurance? That depends on what you and your family are most comfortable with.

Usually, if you live away from home and predominately drive your own vehicle, you do not need to go under your parent’s car insurance policy. You are independent enough to purchase your own policy.

However, if you’re a young driver, having a policy in your name will be more expensive in the beginning. Once you turn 25, your auto insurance policy rates will reduce significantly. If you’re under the age of 25, the costs can be unrealistic. Therefore, staying on a parents’ policy might be the only viable option for you.

It will almost always be cheaper to have the child’s car insurance in the parent’s name. When should your child get their own insurance? That is up to the family to decide independently.

The average cost for car insurance is $84 per month or $1,009 annually. For drivers under 25, that average is much higher.

See just how much more drivers under 25 pay for car insurance by looking at the data in the table below. The data shows real monthly rates for teen drivers in Maine and Florida, where car insurance is some of the least and most expensive in the country, respectively.

Maine and Florida Average Monthly Car Insurance Rates for Teenagers

Young drivers pay two to three times more per month for car insurance when the policy is in their own name. Fortunately, discounts can help. Qualifying for safe driver and good student discounts will lower your monthly rates.

Believe it or not, the type of car you drive will also impact your rates. According to the Insurance Institute for Highway Safety, used car models that have good safety ratings, four or five-star crash-test ratings from the National Highway Traffic Safety Administration, and above-average insurance loss ratios will lead to better car insurance prices, even for young drivers.

A safer vehicle will help protect you if an accident should occur. It will also help minimize your monthly rates, no matter if you chose to stay on your parents’ policy or purchase your own.

If you do live with your parents and predominantly drive their cars, you can buy car insurance under your parent’s name. Your parents can add you to their car insurance policy as a permissive use driver.

This means that your claims will be covered regardless of what vehicle you drive on their policy. It also means that first-party medical insurance coverage will extend to you if you are ever involved in a car accident, whether or not that accident involves a car you own.

Insurance policies follow the car. So while it is uncommon to be on your parent’s insurance if you don’t live with them, you can still put your car insurance in your parent’s name.

You may be wondering, “At what age can I no longer be on my parents’ car insurance?” Don’t worry about it too much, because there is no age limit. How long you can be on your parent’s insurance only depends on how often you drive their cars.

Once you move out and purchase your own vehicle, you’ll need your own insurance policy. Until then, your parents can add you to their insurance to help keep your costs low.

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How can I lower my car insurance rates?

The best way to lower car insurance rates is to look for discounts. As a young driver, you may be eligible for good student and safe driver discounts. Your parents may also get multi-vehicle, multi-policy, and other discounts to help reduce costs.

Another great way to keep auto insurance policy rates low is to keep a good driving record. Avoiding accidents and traffic tickets will keep rates as low as possible.

Your rates will also be lower if you drive an older car that is not considered a sports car. In some cases, you can skip the collision and comprehensive coverage on older cars, which will lower overall rates as well.

Can I be on my parents’ car insurance if the car is in my name?

You can be on your parents’ car insurance in a lot of cases, but that’s not the case if you are the only person whose name is on your vehicle. However, if the car title is in your parents’ name, you can get on their car insurance policy.

Car insurance won’t be cheaper if you won the car. In fact, it will be much higher.

If you want your own car insurance, that is fine even if you still live at home. You would just need to be the vehicle owner.

Why are car insurance rates for young drivers so high?

Young drivers under 25 don’t have as much driving experience to base insurance rates on, so companies must rely on statistical information to determine how much risk a young driver will pose.

According to statistics reported by the Insurance Information Institute, drivers under the age of 25 are involved in the most fatal accidents, despite making up the lowest percentage of all considered a  licensed driver.

See what we mean in the table below, which features data from the Insurance Information Institute.

Percentage of Drivers Involved in Fatal Accidents by Age

As you can see, young drivers fit the definition of high-risk drivers. Therefore, their rates are much higher than average.

Putting car insurance under your parent’s name can help offset the cost somewhat. However, if you add an 18-year-old driver with a car under the parents’ name for insurance, the parent’s rates will still rise.

Fortunately, the rate increase for putting car insurance in your parent’s name will be much less than a separate policy for a young adult’s vehicle.

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Does the name on the vehicle title affect car insurance?

Many drivers ask, “Can I be on my parents’ car insurance if the car is in my name?” It is a question we hear time and time again. While it’s technically not impossible, it is extremely difficult to be on your parent’s car insurance if the car is in your name.

Most of the top 10 car insurance companies by market share require the name on the title of the car to match the name of the insurance policyholder.

It is not okay to have insurance in your parent’s name when you go to title your car because it presents a conflict of interest to the insurance company.

If that car is damaged in an accident, the insurance company must make the check out to the vehicle’s owner. If the policyholder is not the owner, the company will not be able to issue payment.

However, you’ll receive the car insurance payout after an accident if the car is in your parent’s name and you’re on their insurance.

While some insurance agencies will allow you to be under your parent’s car insurance policy with the car in your name, the practice is frowned upon by most companies.

To those asking, “Can I drive a car under my parents’ name?” the answer is yes. As long as you are a named driver for their policy, you’ll be fully covered by the insurance.

In order to have a car in your name under your parent’s insurance, your parents will need to be listed as owners on the vehicle’s registration. If you are the sole owner listed on the title, you should get your own insurance policy.

Can I add a car to my insurance that is not in my name?

Insuring a car that isn’t in your name would raise a lot of different questions, so ultimately you have to have the name on your insurance and your vehicle as the same. That said, you may be able to add a vehicle to your insurance policy as a non-owners policy.

Should I add my parents to my car insurance policy?

Some people might ask, “can I put my mom on my car insurance?” If you do choose to purchase your own auto policy, you should be sure to add at least one other person to your policy as a driver. Until you start your own family, you can put your mom or dad on your car insurance.

You want to add an additional driver to your policy so someone other than you is able to handle your policy affairs in the event of an emergency.

For example, if you leave the country to study abroad or serve in the military, you will probably leave your vehicle behind. If that vehicle sustains damage while it’s parked, you would be unable to handle the claim yourself.

If no one else is listed on your policy, you will need to wait until you come home in order to repair the damage to your car.

If someone is listed on your policy, however, they can call and file the claim on your behalf and have the vehicle repaired for you. Not only is this more convenient, but sometimes necessary.

Having the ability for a family member to file a claim on your policy and seek repairs is especially helpful if you are ever injured in a car accident and are unable to handle the claim yourself.

Whether you choose to stay on your parent’s policy or seek your own policy, it’s important to understand exactly how your coverage works and what your insurance is paying for.

If you have any questions about your policy, be sure to ask your insurance agent; he or she will be happy to discuss your policy with you and make any necessary changes.

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Can I drive my parents’ car without my name on the insurance?

If you still have your learner’s permit, you can drive your parents’ car without being on their insurance.

However, if you will be driving their vehicle once you get your driver’s license, you need to be on their car insurance policy. It’s a good idea to have all drivers in the household listed on the policy.

Now that you know if your car insurance can be in your parent’s name, compare quotes now by entering your ZIP code into our free tool below. Which car insurance company is for you? Find out now.

Case Studies: Car Insurance in Parent’s Name

Case Study 1: Emily and her Parents’ Car Insurance

Emily is a 19-year-old college student who lives with her parents. She recently got her driver’s license and is planning to buy a car. Concerned about the high insurance rates for young drivers, Emily wonders if she can put her car insurance in her parents’ name.

After researching and discussing with her parents, they decide to add Emily as a permissive use driver on their car insurance policy. This allows Emily to drive their cars and be covered under their insurance policy.

Case Study 2: Michael and His Own Car Insurance

Michael is a 22-year-old working professional who recently moved out of his parents’ house. He has his own car and wants to get his own car insurance policy. However, he finds that the rates for young drivers like him are quite expensive.

After discussing with his parents and considering his options, Michael decides to keep his car insurance in his parents’ name for now. He is listed as a permissive use driver on their policy, which helps him save money on insurance premiums.

Case Study 3: Sarah and Her Own Car Insurance Policy

Sarah is a 25-year-old who recently purchased her own car and moved out of her parents’ house. She has a stable job and wants to establish her financial independence. Sarah decides to get her own car insurance policy in her name. Although the rates are higher compared to being on her parents’ policy, she believes it’s a necessary step towards independence and taking responsibility for her own expenses.

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