Understanding auto insurance for your adult child

When your teen started driving, you added them to your auto policy so you knew they were covered. Now, if your child moves out and continues using your car, are they still covered by your policy?

There are a few situations to consider:

If your child still lives with you – they still have full rights to auto coverage under your policy, and are protected by your homeowners policy as well.

If your child moved out but is using your car – they’re covered because they’re using the car with your permission, but they don’t have full protection. While they still have liability, medical payment, and uninsured/underinsured motorist coverage in your vehicle, they don’t receive the same coverages when driving someone else’s car or as a pedestrian.

What you should do to make sure your child is covered: 
The best option to keep your driver protected — if your child moves out and keeps your vehicle — is to switch the title to his or her name and encourage them to get a personal auto policy.

Talk to them about renters insurance, too. After they move out, your homeowners coverage doesn’t extend to their new abode. Renters insurance is an inexpensive way to cover their belongings. They can work with an independent agent to make sure they’re covered.

Share this resource with them. It talks about other things to consider when starting out on your own.

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