Can you stay on your parents’ auto policy after you move away from home?

As a young driver, remaining on your parents’ car insurance policy is often the cheapest way to get the coverage you need. Unfortunately, you cannot remain on their policy forever. As soon as you move out and start a life of your own, you will need to secure your own auto insurance. But why does this stipulation exist and are they ways around this rule? Here’s what you need to know.

  • Why do I lose coverage when I move out?

Car insurance is sold per household, so your parents’ insurance will offer coverage for all the legal drivers living under their roof. Naturally, once you move away from home, you are no longer considered part of their household. This means that you cannot be covered under their insurance.

  • Are there exceptions?

If you are considered a dependent, you can remain on your parents’ car insurance policy even when you are living away from home. While different insurers define “dependent” in their own terms, you are usually considered a dependent if you are in college and live at home part-time (like during academic breaks) or if you drive a car that your parents own.

  • Can I pretend to still live at home?

Technically, your insurer will not know that you have moved out unless you tell them. However, lying about your living situation constitutes insurance fraud and is very risky. If you attempted to file a claim and your insurer found out about your living situation, they have the right to deny you coverage and can even cancel the policy for everyone on it. As this will affect your whole family’s credibility with insurers in general, it’s safer to just get your own policy.

This is what you need to know about losing your parents’ auto coverage when you move away from home. Are you moving soon and looking to secure your own auto insurance policy? If so, contact the experts at Scautub Agency in Scotia, New York. Our dedicated team is ready to assist you with all your coverage needs today.