The kids are driving. They want their own cars, yet you want to help them as much as you can as they establish themselves. The easiest remedy? Keep them on your auto insurance policy until they can afford insurance on their own, right? Consider these important factors when evaluating whether to continue providing coverage through your own auto policy.
• Are they still living at home? In most cases, a policy affords the same coverage for an adult child living at home regardless of age. Ownership, policy language and other variables may play a role, but age by itself does not pose a problem for coverage unless specifically noted in the policy.
• Who else lives there? This may be very important if the vehicle is furnished and available for the regular use of someone who is not a family member by definition.
• Who is the titled owner of the car? If the child owns it, the child needs to insure it. You must have an insurable interest in the vehicle in order to insure it. Talk to your agent about driver exclusions and permissive use.
A thorough review of your personal auto policy with your agent is the best way to find out who’s covered, under what circumstances and to what extent. You can also discover what problems may arise with vehicles owned by you for an adult child who lives elsewhere.
