If a teenager moves out and transfers residence, would she/he still be covered by parents’ car insurance policy?


In our present age, it is not uncommon for us to see teens taking on wheels. The present generation does not feel the need of owning a car first before driving one. Especially for middle income families who cannot afford to buy each member of the household a personal car, most teenagers feel confident enough driving the car of their mothers and fathers, likewise having them under the cover of their car insurance plan. Meanwhile, as teens go through their studies, especially when going to college, it is very likely for them to transfer to the big cities, or even to major cities of other states where their university is located. During these situations, are they still covered by the insurance policy of their parents?

Well, most likely not. One of the major factors for dependents to be covered by the car insurance of their parents is being a household resident. This means that it is necessary for children to be living with their parents literally under one roof in able for them to be covered by such insurance plans. It is a must for children both to be a household resident and to drive the car of a parent in able for them to still be under the car insurance policies of their elders. Moving out of their house and transferring residence makes them not under the category of a household resident anymore. More often than not, although there are many significant differences between the companies’ guidelines, most will not continue to insure the child or the car when they both move out.

Of course, there are some exceptions. Several companies do consider temporary residence transfers like going to a college or a university, as long as the car is still owned by the parent. But there are some limitations to this. For example, when this college or university is located in another state, the insurance policy of the parent will not follow and cover the dependent. Most insurance companies do not cover cars not in possession of plan holders, or garaged outside the state’s borders. Another fact is that companies also do not cover the dependent if she graduates, unless she does not move residence and continue to be part of the household. Of course, if the child acquires a separate car, he/she is compelled to avail a separate car insurance plan. This has always been the rule.