You may think that everyone who drives needs to have their own auto insurance policy, but in fact, not everyone does. Get Your Own Auto Insurance, you need to make sure that it has the right coverage limits and no gaps in protection (for example, your personal car insurance policy won’t cover damage to another vehicle or bodily injury sustained by another driver).
You can read more about what to look for in an auto insurance policy in this article on whether every driver needs to have their own auto insurance policy.
Get Your Own Auto Insurance
Do you rely on your parents for insurance?
The general rule of thumb for drivers under 25 is that it’s cheaper to rely on their parents’ insurance. Depending on what your parents’ policy covers and how long you’ve been on their plan, you may be paying less than if you had purchased your own policy.
It’s also possible that your parents have an umbrella policy (an additional policy to homeowners or auto insurance), which will protect them in case they’re liable for damages caused by one of their children.
If you’re considering getting coverage under a parent’s umbrella, make sure they understand their limits before signing anything. It could leave them liable beyond what they can afford if things go wrong.
Is your car paid off but you still don’t want your parent’s coverage?
You can obtain your own auto insurance policy as soon as you pay off your car loan. However, if you already have full coverage with your parents and don’t want to switch to a new provider or pay more for insurance, it’s probably not worth it for you to get another policy.
Keep in mind that your insurer will check both of your driving records before writing a policy; if one is spotty or has infractions, they may raise their premiums or deny you coverage altogether. If that happens, look into purchasing a new vehicle together instead of each getting separate policies (your rates may be cheaper anyway). In either case, make sure to add any additional drivers to your parent’s policy—you don’t want them left high and dry if you get into an accident.
How can I be independent and safe at the same time?
It all comes down to research and homework. Every driver should know what they can expect if they’re in an accident, and that means having a solid understanding of their policy. Because every policy is different, it’s always a good idea to check with your agent about what you should expect if you’re involved in an accident (and make sure you ask questions if anything doesn’t make sense). Read over your policy as soon as you receive it—and then read it again six months later so that nothing slips through the cracks.
If something doesn’t feel right or still needs clarification, don’t be afraid to reach out to your agent for more information. While you’re at it, take some time to look up other companies and compare policies. While each company will offer similar services, not all of them are created equal when it comes to coverage amounts or deductibles.
Even small differences can have a big impact on how much money you end up paying out-of-pocket if something happens. And remember: whether you decide to get your own policy or go with someone else’s, take time to shop around! There are plenty of ways to save money on auto insurance by switching providers without sacrificing protection.
Can I still stay covered under my parent’s insurance even though they don’t live in the same state as me?
Finding an affordable policy can be a challenge, but it’s not impossible. First of all, one of your best weapons is shopping around. Comparison-shopping will enable you to find out which companies offer low rates and which don’t. Also, once you’ve found a few policies that look good to you, it pays to get some price quotes.
Sometimes auto insurance providers will offer special discounts on products they know they’re going to have trouble selling; using those special offers could mean huge savings for you in the long run. If you’d like more information about how to find an affordable auto insurance policy and lower your premiums, please read below If I am 18 years old, does my parent’s insurance cover me?: Getting car insurance at 18 can be tricky because you’ll need to meet your state’s requirements for getting an individual policy.
That means most people need to get their own plan even if they live with their parents. However, there are some instances where you might still be able to stay covered under your parent’s coverage even if they don’t live in the same state as you:
[If I want my own coverage but am unable to afford it:] Can I just drive without insurance?: Getting into a car accident without any kind of protection from damages or injuries is something no driver wants to experience—but avoiding car accidents altogether isn’t always possible either.
What are the best ways to find an affordable auto insurance policy?
The insurance industry is notoriously complex, which makes shopping for a policy incredibly difficult. There are hundreds of individual variables that can affect your insurance rates—from your driving record to vehicle type to location. But there are a few rules of thumb you can follow to simplify things and ensure you’re getting an affordable policy: Make sure you buy comprehensive and collision coverage (collision will pay for damage to your car after an accident; comprehensive pays if your car is stolen or damaged in some other way).
Also, make sure you have liability coverage. If you get into an accident with someone else who doesn’t have insurance, liability will cover their medical bills and property damage. Liability limits should be at least $100,000 per person and $300,000 per incident.
Finally, shop around. Different companies offer different deals based on your profile so it’s important to compare policies before buying one. To do so effectively though, it’s best to go through a quote comparison tool like InsureMe’s quote comparison tool above as they do all of the legwork for you!