If you’re getting ready to move out, it’s natural you might want to stay on your parent’s auto insurance policy. After all, car insurance for young drivers can be costly, but when you avoid buying the right insurance, it can cause you a number of problems. Its important to understand when you can stay on your parents’ policy and when you should get your own.
Check Policy Details
While some insurers aren’t as strict others, generally you need a separate policy if you move out on your own and have your own car. However, if you’re considered a dependent, you can often stay on your parents’ car insurance. Typically, a dependent is an individual attending college or living at home at least during the summer and holiday breaks, and they drive a car that their parents own and insure. However, if you no longer live in the family home, or you own your own vehicle, you need to purchase your own car insurance.
Your Address Counts
Your insurer wants to know where you park your car at night. If you lie and use your parent’s address after you’ve moved it changes the insurer’s risks. For instance, if you live in the city now and your parents live in a more remote location, the premiums charged won’t reflect this change.
If you need to file a claim you may be in for a rude awakening. They probably won’t honor the claim and they may cancel the policy, too.
Lying about where you live is considered insurance fraud. If you think no one could possibly know that you’re living elsewhere, think again. Auto insurance companies include Special Investigative Units and these units, along with law enforcement, verify all information surrounding a claim.
In Rhode Island, insurance fraud can lead to a fine of up to $1,000, or imprisonment for a period of not more than one year, or both. Yikes.
Definitely talk to an independent insurance agency like ours when it’s time to buy. We work for you and not the insurance companies so we’ll compare policies and find you the best coverage at the most affordable rates.
Otherwise, you’ll spend considerable time comparing apples and oranges and you won’t end up with what you need. Insurance agents understand the industry and insurance policies so they can properly protect you from risk. They’re not just out to make a sale, they want to help their families, friends, and neighbors get the proper protection.
Don’t believe that state minimum coverages are sufficient either. They’re far too low to protect you if you’re in an accident that causes significant damage or bodily injury.
How to Lower Premiums
Unfortunately, young drivers do pay significantly more since statistics show they are also more likely to file a claim. However, you may pay less if you’re a recent college graduate, your parents are longtime policyholders, or you’re a member of an organization or company that offers group discounts.
Of course, factors such as the make and model of your car and your credit, age, driving record, and how much you drive also impact your premiums. If you buy a vehicle with anti-theft devices or safety technologies, or if you bundle your auto insurance with your renters insurance it can lead to lower costs. Ready for your own policy? Give us a call.