Pros and Cons of Staying on Your Parents' Car Insurance Policy

Most teens are insured under their parents' auto insurance coverage the first couple of years that they start driving. However, many teens, when they graduate high school and either go to college or begin a new job, wonder if they should now get their own car insurance. There are both pros and cons to staying under your parents' car insurance policy.

One of the pros is that there are certain discounts your parents can get by buying a group auto insurance policy. For instance, many insurance companies offer discounts for multiple cars. Plus, your parents can probably get cheaper rates because they can get breaks for owning a home and having an established credit history. And if there are multiple drivers listed under one policy, then all of the driving records are taken at average, so if you don't have a good driving history, then their good driving records will help you obtain lower prices. Last, you don't have to go through the process of getting a quote, deciding what coverage to carry, or have the responsibility of paying the bill.

The cons are that you have to pay your share of the auto insurance to your parents rather than directly to the auto insurance company. Your parents could get a bit angry if you don't pay your share on time and family disputes could arise. Plus, you aren't getting the experience or learning the responsibility of having to pay your own bills on time. Next, if your parents have an expensive car, chances are their rates are going to be higher because a group auto insurance policy mandates that all drivers be insured under every vehicle. Your parents, consequently, may not like that their rate is higher because of you.

Those are some of the pros and cons of staying under your parents' car insurance. Granted, there are a few more pros than cons. However, the cons could be weighed more heavily by your parents.