Insurance FAQ’s: When should my child have their own auto insurance policy?
As your child spreads their wings and moves out of the family nest, it’s important to consider the various aspects of their newfound independence. One crucial aspect that often gets overlooked is auto insurance. Unlike health insurance, there is no age limit when it comes to your child staying on your auto insurance. As long as your home is their permanent residence, your child can remain on their insurance as a listed driver.
While it may seem tempting to let your child remain on your policy, there are several compelling reasons why it’s beneficial for them to have their own auto insurance.
- Having their own auto insurance gives your child a sense of responsibility and ownership. By taking charge of their insurance, they become more accountable for their driving habits and any potential accidents or incidents that may occur. This newfound responsibility can serve as a valuable lesson in adulthood, teaching them about the importance of financial independence and making wise decisions.
Pro Tip: If you are an Erie Insurance customer, be sure to have your child sign up for Erie’s YourTurn Rewards Program! It will encourage them to be a safer driver by rewarding them with gift cards.
- Having separate auto insurance allows your child to build their own credit. By having their own policy and paying their own bills, your child can start establishing credit. This can have long-term benefits when it comes to future financial endeavors, such as purchasing a home or obtaining loans.
- Moving to their own auto insurance provides your child with the flexibility to choose coverage that suits their specific needs. As they embark on their own journey, their lifestyle and driving habits may differ from yours. With their own policy, they can customize their coverage, ensuring that they are adequately protected in various situations. This level of customization can offer them peace of mind knowing that they have the right protection in place.
- Having their own auto insurance can potentially save you money in the long run. When your child moves out and obtains their own policy, they are no longer considered a dependent driver on your insurance. This change in status can lead to significant savings on your own insurance premiums. Additionally, if your child maintains a clean driving record, they may benefit from lower rates and discounts over time, further reducing the financial burden on both of you.
But when is the right time to take your child off of your auto insurance policy?
Your child MUST have their own auto insurance if the following happens:
- They move out of your home permanently.
- They own their own vehicle.
- They get married and live on their own.
Having their own auto insurance prepares your child for the future. As they navigate through life, there will come a time when they need to handle all aspects of their own finances independently. By taking the initiative to secure their own auto insurance, your child gains valuable experience in managing their own affairs, setting a solid foundation for their financial future. Before they take that leap into the world, make sure they have the protection and empowerment that comes with having their own auto insurance.
Are you ready for your child to get off of mom and dad’s auto insurance policy? Holley Insurance is here to help them make the switch!
It’s hard to know when the right time is to encourage your adult children to start taking on the “adult stuff” themselves, we know. But we promise, they are in the best hands with Holley Insurance. We’ll get them the proper protection at a great price. Give us a call at (540) 334-4225 and we promise to make the process easy.
A little more about Holley Insurance…
Holley Insurance was founded in 2000, and retains a core base of loyal clients. We have locations in Roanoke, Rocky Mount, and Forest, VA. As an independent insurance agency, Holley Insurance represents a carefully selected group of financially strong, reputable insurance companies. Therefore, we are able to offer you the best coverage at the most competitive price. If you’re interested in starting a quote online or having us take a look at your current policies, click here.