Can I Drop My Child from My Car Insurance?

Car insurance is a necessary expense that many teenagers are unprepared for when reaching adulthood. A variety of reasons such as your child moving out of your home, a high potential for liability, or deciding to give your child a bit more responsibility may move you to ask, can I drop my child from my car insurance?

Can I Remove My Child from Insurance Policy?

It is possible to remove a child from a car insurance policy, but it may take a bit more work on your part. Since an insurance company could be held liable if an accident were to occur involving your uninsured child, most carriers will require a few extra steps to drop a child from your policy.

Easiest Way to Remove a Child from Policy

Excluding your child as a driver will immediately exclude them from being listed on your car insurance policy. The fee for insuring a teen driver would be significantly higher than whatever fee your carrier may charge to exclude them.

Disadvantage of Exclusion

Excluding your child as a driver removes them from your insurance policy but it also removes them from having any insurance coverage at all. This means that they will not be allowed to drive your vehicle or another person’s vehicle because they will not be covered by any insurance.

How Else Can I Drop My Child from My Car Insurance?

Two other options for removing your child from your car insurance are by proving they are no longer in your care. This would be done by gathering the appropriate paperwork to show they are covered under another separate car insurance, or live at a new residence.

Other Insurance

If your child has obtained his own insurance or is listed on someone else’s car insurance, this could be shown as proof that they do not need to be under yours. Your insurance company may require a child that still lives in your house to be listed on your policy.

New Residence

If a child has moved out of your home as a teenager and has a residence on their own, it is possible to remove them from your car insurance policy. You must supply your insurance company with proof such as receipt of rent payment or a utility bill with your child’s name listed.

Advantages for You to Keep a Child on Your Policy

The answer to the question, can I drop my child from my car insurance, may need more consideration if your child will not have a policy of their own. If circumstances are changing, it may be best to keep your child on your policy instead of taking them on and off repeatedly. If your child is not listed on any policy, they are effectively uninsured and may not be automatically covered by other people’s insurance. They may also later be hit with higher insurance premiums since they would have a history of lapsing insurance.

Consider the Costs

A teen driver will raise parents’ insurance premiums considerably. A 100% increase in costs can cause parents to ask, can I drop my child from my car insurance? Over time, insurance companies recognize a driver’s safety record and will reward you with a lower premium. So as long as your teen is a safe driver, your costs should decrease over time.

Is There an Age Limit?

Insurance companies do not put a cap on the age of a child you have listed on your policy. You can continue to cover them through your insurance for as many years as you choose. The constantly changing economy is moving many families to keep costs low by combining policies in this way.

The Advantage for Your Child on Your Policy

Car insurance for teenage drivers is expensive. They could pay over $3,000 annually for a policy on their own. By listing them on your policy, the cost will be just a fraction of that fee.

Why Should I Keep Them on My Policy?

A child attending college may not be driving while at school, so you feel they do not need to be covered. However, if they were to come home to visit and want to borrow your car, they are at college and need to drive a friend’s vehicle or are stuck in an emergency and need to drive, they need to be insured. Before removing them as a driver, consider what situations may arise that your child should be insured, and decide if it is worth keeping them on your policy.

How to Get Discounted Insurance

A few deductions can be earned by having students on your policy. One is a good student discount which can be obtained with at least a B average driving record. Another option, which is the distant student discount, applies if a child under 23 years old is attending school full-time over 100 miles from home. Both of these student discounts can potentially save a family hundreds of dollars a year. Maintaining your child as a driver on your policy gives them a continuous record of insurance that will help them get lower premiums on their own policy later on.

What to Do if Keeping a Teen Driver on Your Policy

If you decide to keep your child listed on your policy when they are away at college, be sure to inform your insurance company of their whereabouts. Your home will remain as their primary address and you may ask to add them to whichever vehicle has the lowest value to keep premiums down. An important part of keeping your child on your policy is to have a conversation with them concerning their driving habits. Any accidents will come back on you as the primary policyholder so remind them to drive safely, no texting and driving, no driving while using drugs or alcohol, and no allowing friends to take their vehicle.

Should I Drop My Child from My Car Insurance?

There are advantages to removing a teen driver from your policy such as lower premiums and added responsibility for your child. Keeping them on your policy also has the benefits of ensuring they are always covered no matter where they are, and their costs will be a fraction compared to having their own policy. However, if you choose to remove your child from your policy, with a bit of paperwork and work on your part, it can easily be done.

Check this out if you need additional information, resources, or guidance on car insurance.

Sources:

https://www.mass.gov/service-details/tips-for-teen-driving

https://www.nhtsa.gov/road-safety/teen-driving

https://www.autoinsurance.org/what-is-government-auto-insurance/

https://www.state.gov/vehicle-liability-insurance-requirements/

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