Time for your child to get their own Auto insurance!

​I am often asked when should my son or daughter get their own auto insurance policy? The answer is not as simple as just stating an age. Wouldn’t it be nice to know that at age 23 ½ your kid is required to get their own auto insurance policy?  That would make things easy for both the parents and the insurance agents. But, the truth is it varies on the situation.
Is getting your own auto insurance a moment you will always remember? Well, I definitely remember getting my first auto insurance policy. I had moved out to California and I had been on my parents auto insurance policy. After working in Los Angeles for a few years I started to make enough money to consider replacing my aging car. I eventually decided to buy myself a cool little Ford ZX2. It was a sporty little coup and since my brother was working for Ford at the time I was able to buy it with the “family” discount. I picked out the color, silver. I also decided to get it with a manual transmission. I figured it would be fun to drive and more sporty. Despite me not really having a firm grasp on driving a stick shift car I walked into the dealership and signed some paperwork. They handed me some keys and off I drove slowly. I knew the basics to driving a manual transmission thanks to a few girlfriends along the way. But, getting that clutch and gas and the gears just right took a little while to get right. My first trip in my new car was to the insurance agency, I may have stalled the car a few times along the way. I met with an agent and he discussed the coverage. He asked me if I had any assets and I told him how much I had to my name. We went the 50/100 for bodily injury. I don’t really think I knew what that was but he seemed to thing it was good coverage. He put me at 50 thousand property damage and gave me a 500 deductible for the car. I rolled out with a shiny new Mercury Insurance policy and I felt pretty good about myself. I wasn’t really sure what I was buying but I knew the company and the coverage seemed appropriate.
Now, not all kids are going to run out and buy their own insurance. I have always tried to be independent from my parents and I wasn’t about to ask them to cover me driving a new car on their policy. But, some kids might ask. If you are the parent you need to tell them “no”. If they buy a car in their own name they really should have their own auto insurance. The reason is because they need to understand what insurance does for them. They need to learn how it works, what it covers and they need to know if they stop paying they are no longer legally able to drive in the state. Additionally, if they have a loan on the car the bank will force them to keep the insurance in place too.  If you put your kid and their new car on your policy you are opening yourself up to risk and lawsuit. Injury attorneys are always looking for the most money to make off an accident. I'm going to assume the parents have more assets and if they were to injure someone with their vehicle they are going to be knocking on your door.
I usually advise my clients to get their child off their policy as soon as they can. But, if your son or daughter is driving a car in your name you will want to keep that car on your policy until you can transfer it out of your name. If the car is in your name it puts you at risk for a lawsuit whether they are on or off your insurance.
I kept my daughter on my insurance until she moved out of the house.  Since she was living in NYC she doesn’t need a car. But, if she ends up moving she will be on her own to buy a car and get her own insurance.
Once the car is in their name get them their own insurance. It may not be cheaper but it is a wise investment. Call today to get your auto insurance quotes. 951-395-0754