As a teenager, being on your parents’ insurance made the most sense. After all, you might have lacked the income, credit score, and driving history you needed to get an affordable policy. As you move further into adulthood, you might be wondering if staying on your parents’ insurance is your best financial option. The answer to this question will vary among young adults, and it helps to take a closer look at your specific situation to determine when it’s time to have your own auto insurance policy.
Understand Your Risk Factors
Insurance companies view teen drivers as having a higher risk of accidents due to their lack of driving experience. Most insurance companies start lowering rates for drivers when they reach the age of 25. At this point, most people have enough driving experience to know how to avoid having an accident. You’re also more likely to be able to overcome the temptation to do risky things such as using your cell phone while driving. If you’re 25 or older, you may be able to get a similarly priced policy as what you have with your parents.
Consider Your Living Situation
Many insurance companies require that all people with driver’s licenses who live in the home be included on the policy. This is because one could reasonably assume that anyone who lives in the same house might use a vehicle at some point. Alternatively, your insurance company might prefer to revisit the current policy if you move out and live on your own. At that point, you might be considered independent and therefore capable of maintaining your own policy. If you aren’t sure, it’s best to check with your insurance company. The representative you speak with can let you know if your parents can or should continue to include you on their car insurance.
Explore Additional Discounts
If you’re over 18 but not yet 25, you might still be wondering if you can get a low-cost policy without having your parents include you on theirs. For instance, you might already be handling most of your financial needs, and getting your own policy would free you from the burden of having to cover your portion of the cost for your parents’ policy. In this case, you might want to try getting a quote to see how much an independent policy would cost. Make sure to inquire about special discounts that make insurance more affordable for young adults, such as getting a lower rate for making good grades in college or taking a driver’s safety course.
Maintain a Good Driving Record
With both your parents’ policy and one you purchase on your own, your driving record plays a huge role in how much you pay for auto insurance. Your parents are far more likely to let you stay on their policy as a young adult if you’ve managed to keep your rates low by using safe driving practices. As you get older, your driving record may only affect you directly. However, you’ll enjoy lower rates as you age by avoiding accidents.
For a detailed personalized quote on auto insurance, contact your insurance agent. If you’re looking for affordable car insurance and high-quality service, call on the trustworthy agents from Altra Insurance Services. We also provide dependable renters, homeowners, and motorcycle insurance. San Diego drivers of all ages should give us a call today at (800) 719-9972.