Car insurance is typically purchased for drivers-per-household. So, for the most part, you will have to get your own car insurance when you move out of your parents’ home and purchase a vehicle under your name instead of your parents’.
It is best to wait as long as possible to buy your own car insurance for a number of reasons. Also, there are many things you should know when it’s time to go out on your own.
Why Stay On Your Parents’ Plan?
As a young person, your car insurance is, unfortunately, more expensive. Until age 25, you will have higher rates than older individuals.
Under your parents’ insurance, rates are cheaper than they would be on your own. However, having you on their plan does increase your parents’ rates.
Whatever your situation may be, stay on your parents’ plan as long as possible. If this is no longer an option, whether due to difficult circumstances or by you moving out, you have options.
If you are in college and are roughly 100 miles or more away from your home without a car, you and your parents will receive a substantial discount on your car insurance. This will help you be able to stay on their plan a bit longer, even if you have technically moved out of the house.
When it Comes Time To Buy Your Own Car Insurance…
You will have to buy your own car insurance when you move out. Technically, you can buy your own plan sooner than that, but we really only recommend doing so if your parents have a bad driving record.
Regardless, when it comes time for you to buy your own car insurance, the first thing you will have to do is have a car in your name. All you have to do is transfer your vehicle’s title from your parents to you.
Then, you will have to find a car insurance plan that suits your needs and budget. Sometimes, you may be able to get lower rates from the company you are leaving. Otherwise, you will have to start comparing car insurance plans and companies in your area.
…Buy it From a Company You Can Trust—Call Redwood Agency Group
Entering the insurance world is scary. When it comes to leaving your parents’ car insurance, you want to make sure you know exactly what you’re getting into.
You need a company that will give you the information, without any scams or tricks. Redwood Agency Group’s friendly, personable team members will take the time to explain everything you need to know.