When to have a young adult move off onto their own insurance policy?
This can be a tricky question and at Cornerstone, we have been faced with it a lot this month. The answer is: It depends.
Things to know about kids being on their parent’s auto policy:
- It’s going to be cheaper, but might not always make the most sense
- The child needs to be either living at home or going to school full time
- The parent’s need to be on the title to the vehicle the child drives
- The child cannot not be married
What if my kid already left the nest?
When your young adult is out in the work force and has “left the nest”, it is time to get your name off the title of their car, get them on their own auto insurance and have them buy a renter’s insurance policy. Not only does this transfer the risk off your shoulders (should they get into a big, bad car accident) but it allows your young adult to gain independence, learn to be more financially independent, and can even help them establish better credit.
Of course, every situation is different. Whatever the case may be, you want your young adult to have good liability limits of insurance. Talk to us to decide if it’s time for you and your young adult to take the plunge!