Children grow up, they go to college, they move out of state or maybe they just move out of the house on their own! Congratulations! This is a huge accomplishment for them, moving into adulthood and for you, showing your child how to become more independent. You did your job of raising your youngsters into young adults ready to take on the world!
Now that they are on their own, there is nothing wrong with helping them out once and awhile by paying for groceries, helping them to furnish their new apartment and there is no doubt that they appreciate the help. However, with respect to their auto insurance, you may want to consider your options.
The discussion of staying on your policy or getting their own after they hаvе moved out?
Under most реrѕоnаl аutо роlісіеѕ, the dеfіnіtіоn оf аn “insured” includes “family members.” Whіlе child іѕ a fаmіlу mеmbеr bу аnу other dеfіnіtіоn, in the wоrld оf insurance family mеmbеrѕ are lіmіtеd to “а реrѕоn related tо you bу blооd, mаrrіаgе оr аdорtіоn whо іѕ a resident of уоur hоuѕеhоld.”
Sо, nоw that your child has moved out and is living on their own, they may no longer meet the “family member” status and the vehicle may no longer be insured on your policy. Yоu may hаvе lіѕtеd them аѕ a “permissive uѕеr” on your insurance, but thiѕ саn ѕtіll lеаvеѕ a lot of gaps іn coverage.
Keep in mind that if your child is going to college, this may be a whole another situation. Similarly, depending upon where they go to college and even where they move to, another state or country, can make another difference.
Quite honestly, the best bet is to discuss your personal situation with your insurance agent and they can work the options with you.
Your grown child may need to get their own auto insurance policy
Of course cost is always a factor and it may be typically less expensive, over all (this probably means less cost to you) but there are various factors to consider.
- How old is the child that is moving out?
- How long have they been driving?
- What state are you currently in? (as you know rules change across the states)
- What state is the child moving to?
- Is the child going to college?
- Is your child going out of the Country?
- Is this move out temporary for whatever reason?
Ultimate, they will need to be covered. Here in the Galveston and Harris County in the great state of Texas, insurance is required. The level of protection depends on if there is a lienholder and how much coverage you want to carry, if no lienholder.
Consider your child getting in an accident on your insurance policy.. that will stay with your insurance policy until it falls off after a number of years. Yes, that is even if they move out and get their own policy because remember that it was your policy that paid the claim so be sure you consider all of the factors before making a decision to keep your grown adult on your policy or have them get their own.
Again, the best bet is to take all of your facts of the situation to your insurance agent, have a conversation with him or her and discuss the various options, what could happen if, and then you can determine the best course of action, for now. Remember, this isn’t forever and you could change your mind at the next policy renewal or even in the middle of the policy term. Having a relationship with your insurance agent is always helpful. If you don’t have one with yours, contact Paula Smith Insurance at (281) 488-8880 and let us help you and build a relationship with you and your family to meet your home and vehicle insurance needs.