It’s common for young drivers to start out on their parent’s auto insurance. Not only does it provide a substantial amount of coverage and the resulting peace of mind, but it can also result in substantial savings. However, there are restrictions on how long one can remain on the family plan. Here's a closer look at how these are determined as you prepare to venture out on your own.

Can You Stay on Your Parents' Policy After Moving Out? 

Car insurance has no age limit for young drivers who want to stay on their parents' policy. For example, if you go away to college but still list the family home as a primary residence, you can continue to receive coverage. 

Even moving to a separate property that’s owned or rented by your parents will qualify you for their insurance. The only catch is that the vehicle must be owned and insured by the policyholder. Anyone who purchases a vehicle has to get coverage in their own name. 

What Are the Benefits of Staying on the Family Policy? 

You won’t have to pay as much while on a parental auto policy. This is because insurance companies base their rates largely on risk, so drivers who don’t have much experience will likely be assigned much higher premiums until they can prove good behavior. 

Parents who don’t have a record of speeding tickets or accidents will already have a good rate, which could make payments more manageable even for their children. Plus, being named on their policy will allow you to create a good driving history and increase the chances of a quality rate when the time comes for an individual policy. 

When Should You Get Your Own Coverage? 

It all depends on where you’re at in life, but as there’s no age limit, it’s best to start requesting auto insurance quotes after a few years of driving. If the independent rate is close to what you or your parents are currently paying, it makes sense to take out a policy as part of claiming independence as an adult. Other instances include buying a vehicle or moving to a property that your parents don't own or rent. 

Find the coverage that suits your needs by working with Lafever Insurance Agency in Cookeville, TN. This local insurance agency has more than 30 years of experience and supplies an assortment of auto insurance policies. They commit to securing the best possible rates and offer exceptional customer service. Call (931) 526-3377 to request a no-obligation insurance quote or visit their website to see their commitment to young driver coverage.