Who’s Car Insurance Protects The Kids After They Have Moved Out

If you raised a Teenager you know what happens all too well. Your boy suddenly reaches the age when he can finally get a learner’s permit to start driving. After one or a couple of tries, he passes the driving test and gets his life altering ID his drivers license. After he tries to get a Discount auto insurance policy on his own and discovers he can’t afford it. You open your pockets and tell your insurer about your enthusiastic new driver. Your auto insurance policy will include him throughout high school, when he graduates and goes to college, and while he’s back home. At some point, he becomes a man and moves out on his own for good. Maybe he moves to a city with good public transit, and his first job doesn’t pay enough for him to pay all his bills and still afford a car in the city. So for the time being he goes without one.

One day, finally he gets the courage up to ask out that girl in the finance department he’s been flirting with. Meeting her at the local pizza place just won’t fly, so he begs his new best friend to borrow his car. The friend, agrees to lend him the car if he puts gas in it and gives him money for a sandwich. Your young Don Wan picks up his date, pulls out onto busy City Dr, and smack rear-ends a BMW. Confused, he throws the car into reverse and hits into the Saab behind him. Two questions engulf his mind: 1) Is the date over? and 2) Does his old-new best friend have auto insurance to cover his exciting first date with dream girl accountant?

Bad news for your Don Wan: The girl grabs a cab and his friend missed his last insurance payment; the policy gets canceled for failure to pay. Then a light bulb turns on: Am I still on Mom and Dad’s auto insurance. Just maybe their insurance policy will cover the repairs.

Every insurance policy has a specific descriptions of who is included in the policy. The standard Personal Auto Policy published by the Insurance Services Office states that the first named insured on the policy and “family members” have coverage for the ownership, maintenance or use of any car. Maybe Don Wan got lucky. Or maybe not.

All car insurance policies also have a specific definition for the term, “family member:” A individual that is related to the first named insured on the auto policy. The family member has to be related by marriage, blood or adoption and must also live in the first named insured primary home. Young Don Wan left your residence, which is when he started his career, met his dream girl, and borrowed his new friends uninsured car.

In 1975 a California court came to a decision on a similar case where an adult son who lived in a separate home from his parents but on the same street and relied on them for money was not considered a resident of the their home and therefor wasn’t covered under their car insurance policy.

There are exceptions to these rules. Courts have recognized that college students, although they live at college, are still considered residents of their parents household. Even a self-supporting child who still lives with you but pays you rent will also qualify as a resident usually up until the age of 25.

It’s when they permanently move away from home that the break in coverage will occur. Even if your child doesn’t own a car, they should consider getting Free Insurance Quotes for a Names Non-Owner car policy. This will protect them for injuries or damage that may occur while renting or borrowing a car.

And, although your Don Wans’ date most likely would have ended anyway, it would have saved him a big headache and a lot of money.

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