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Private Risk

Do Your Older Children Need an Insurance Policy?

Madelyn Newland
Madelyn Newland
Client Executive, Property Casualty

If you’re a parent, you know when it comes to your kids, there’s never a shortage of worry. One thing you shouldn’t have to worry about, though, is ensuring you have insurance in place for them should you need it. But, the question becomes, when should you move your children to their own insurance policy?

We have a lot of clients who call us when their children turn 16 hoping to move their vehicle/child to their own insurance policy. What else is there besides auto insurance should you be considering? And when should you make the transition?

I’ve done my best to explain!

Auto Insurance

When it comes to auto insurance, some parents are eager to get their children onto their own insurance auto policy the minute they turn 16. Other parents are willing to wait that out for as long as possible.

So, what’s the best route to go? It comes down to a few factors.

Vehicle Title

First, the vehicle has to be titled to the same name that the insurance policy is in. This means that in order for parents to move their children onto their own auto policy, the vehicle title must be changed to their children’s name.

The other issue that we can run into is if a child (or young adult) purchases a vehicle in their own name and wants their parents to still insure it. If the vehicle is in the child’s name, then the child must insure it.

Another caveat is that all drivers who are living in a household should be named as drivers on the auto policy. If an adult child is still living with his or her parents, then they should still be listed as a driver on the auto policy. Typically, a household driver is defined as a household member who has regular access to the vehicle and has a driver’s license.

Renter’s Insurance

Renter’s insurance can also be a confusing topic. Typically, there is automatic extended coverage for family members who are temporarily living outside of the household at a college in a dorm room. Some carriers will also cover if they are living in an apartment.

Once a child establishes their residency outside of their parent’s household, then they should purchase their own renter’s or homeowner’s insurance to cover their property and liability.

Have Questions?

If you’re ever wondering what other types of insurance you should be considering for your family or your adult children, please don’t hesitate to reach out to us! We’re happy to help.

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