When adult children move out, your auto insurance should change. Here's how to navigate removing them from your policy while ensuring everyone stays properly covered.
When Can You Remove Them?
Generally, you can remove an adult child when they:
- Move to their own residence (not temporarily away at college)
- Have their own vehicle titled in their name
- Get their own auto insurance policy
- Are financially independent
Steps to Remove a Driver
1. Ensure They Have Their Own Coverage
Before removing them, confirm they've purchased their own insurance. There should be no gap in coverage.
2. Contact Your Insurer
Notify your insurance company that your child has moved out and has their own coverage. Provide:
- Their new address
- Date they moved
- Confirmation they have separate insurance
3. Update Vehicle Ownership If Needed
If a vehicle was in your name but going with your child, transfer the title. They can't insure a vehicle they don't own.
Financial Impact
Your Premium Will Drop
Removing a driver, especially a young one, typically reduces your premium. The savings depends on their age and driving record.
Multi-Car Discount Changes
If you're also removing a vehicle, you might lose multi-car discounts. The net savings usually still favors removing both.
Important
Young drivers getting their own policy for the first time typically pay more than they cost on a parent's policy. Help them shop around and understand their options.
College Students: Special Rules
Students away at college but not yet fully independent often stay on parent policies:
- Without a car at school: May qualify for distant student discount
- With a car at school: Usually must remain on parent's policy or get their own
- Coming home for breaks: Still covered on your policy when visiting
When They Visit
After your child has their own policy, they're still covered when occasionally driving your car as a permissive user. Their own policy is primary if they're driving their car, even at your house.
Helping Them Get Started
First-time insurance for young adults can be expensive. Tips:
- Shop multiple companies
- Look for new customer discounts
- Consider usage-based insurance
- Ensure they take advantage of all discounts (good student, etc.)
Removing drivers when they move out keeps your policy accurate and often saves money. Coordinate timing carefully to ensure no one ends up uninsured.