Literally, it is a huge price to pay if your teen or college student son or daughter will start driving. Aside from the car itself, the maintenance, the accessories, parents must also pay attention to availing car insurance for their kid. Car insurance for teens and college students is far more expensive than any other drivers thus making the on-set of teenagers driving life financially demanding.
One way to make these expenses on car insurance for people below 25 years is to have them listed as teenager dependents on parent’s car insurance policy. Although not all the time, this inclusion can be cheaper than availing a separate premium for teenagers.
However adding of a teen to parent’s existing insurance policy comes with specific requirements. First the teenager dependent must be driving the parent’s insured car and nothing else. Second, he/she must be driving just within the borders of the state to where they live. Lastly, teenagers or college student son or daughter enlisted as dependents must be a household resident. Any circumstances that wouldn’t fit in to these conditions would mean non-coverage on the part of the car insurance agency.
The last mentioned condition for a teenager or a college student to be covered by his/her parent’s insurance policy plays a pivotal role in answering the question “if a teenager moves out, would he/she still be covered by parent’s policy?”
It is normal for teenagers to move out of their parents’ house especially if they are about to enter the tertiary level of education. Transferring to big cities most of the time is necessitated by teens having to enter college or university schools, moreover sometimes even transferring to other (major) state cities.
This case would then defy the second and third requirements for policy inclusion. Thus the insurance policy would not follow the teenager listed as dependent. Where the car is driven is not just influencing the insurance rates, it is also determining the inclusion of a teen to the parent’s policy. Why is this so?
Insurance companies are guided and are generally regulated by state-laws. For example, insurance coverage requirement to every driver can be determined by the state. It is therefore state-specific. Even the price of car insurance premiums depends on which place one is residing and buying it.
Some insurance companies offer consideration to temporary resident transfer and this includes one going to a college or university given that the car doesn’t change owner. However this can only be true if the movement will happen just within the state to which the involve people are residing.