When To Drop Your Child From Your Auto Insurance.

You might be thinking how wonderful it’s going to be when your teenage driver goes off to college and you can stop paying a high premium for auto liability insurance. After all, a child away at college who can’t drive your car shouldn’t need to be included on your coverage any more–Right?

Think again!

One of the most common requests I had while I was an active insurance agent was to delete the young driver’s off their parent’s auto insurance policy. Every time a new college term stated I dreaded the calls from the anxious parents. As nice as it is to see the child grow up an move away from home removing them from auto liability insurance policies could be a mistake for everyone in the family.

It just isn’t good enough that your child lives 500 miles away and doesn’t have a car. The fact, is someone will be liable if that child drives any car. Your young driver may be very responsible and end up being the only sober driver one Friday night. If your child drives his buddies uninsured car and there is an accident someone is going to be held liable. The someone who may be held liable will be the people with the money and the tax deduction.

When can a parent safely remove an adult child from their auto insurance policy? The short answer is when that child has his or her own insurance and makes sure the premiums are always paid. And, when you’re no longer telling Uncle Sam your child is a dependant and you take a tax deduction.

My advice to all parents is to continue to keep their adult child insured until the child has a great job, his or her own car, and is paying for their own insurance. Most insurance companies offer some kind of discount or reduced premium for insured college students living away from home without the use of a car.

It’s also a benefit for your child’s future to keep them as a named driver on your policy until they are able to purchase their own. Rates are generally much higher for a person without prior insurance. Keeping your young adult driver insured on your policy until they are ready and able to insure themselves is the best protection for everyone in the family.

Photo credit for this blog entry: sxc (no use restrictions for this photo)

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