When to Remove Your Child From Your Car Insurance

When to Remove Your Child From Your Car Insurance – Most parents keep their kids on their car insurance policy to keep them insured until they are of the age to purchase a policy. While this is a smart move, most parents find it difficult to remove their children from their car insurance. All drivers, including teen drivers, need to have a car insurance policy, but it is important to know when to remove your child from your car insurance.

When to Remove Your Child From Your Car Insurance

Generally, it is the right idea to remove your child from your insurance policy, especially after they move out and live on their own. However, it is not easy to remove your young driver from your car insurance; you will be required to meet some requirements first. Before proceeding with this process, this write-up contains all the information you need to remove your child from your car insurance.

When to Remove Your Child From Your Car Insurance

There are some instances when you should remove your child from your insurance. Generally, when your child is up to age to buy their policy, usually 25 years, they should no longer be on your policy. However, the following are times to remove your child from your policy.

If Your Child No Longer Lives with You:

If your child moves out of your home, they no longer need to be under your car insurance policy. Here they would need to purchase a personal policy. In this case, your insurance company will request proof of your child’s new residence.

Your Child Has Another Insurance Coverage:

If your child has gotten a new car insurance policy. Or they are listed on someone else’s policy, then they do not need to remain on your policy. Your insurance company may likely require proof of your child’s new insurance.

Your Child Owns a Vehicle:

After your child purchases a new vehicle, they no longer need to be on your policy. If the new vehicle is purchased in their name, most car companies would require them to have an insurance policy covering the vehicle. This means they will have to be the owner of the policy.

These are a few cases where you need to exclude them from your policy. But there are other cases where your coverage may not be good enough for them.

Benefits of Removing Your Child From Your Car Insurance

Removing your child from your policy is beneficial in several ways. It helps them seek their car insurance, and this is beneficial to both the child and parents. The following are the benefits of excluding your child from your car insurance:

  • Adult drivers are considered by insurance companies to be less likely involved in an on-road accident. For this reason, excluding your child can get you qualified for lower premiums.
  • It helps your child learn responsibilities as they take a step into financial independence.
  • Allowing your child to purchase their insurance can help them grow their credit score. As they carry the responsibility of paying their own bills on time, their credit score grows to make it easier for them to make larger purchases as they grow older.
  • Purchasing a personal car insurance policy after they move out helps them avoid a lapse in coverage. However, if your child no longer lives in your home, they cannot be listed as a named driver on your policy; this can however lead to a gap in insurance coverage.

How to Remove Your Child From Your Car Insurance

Excluding your child from your insurance policy differs based on your insurance company. While these steps are different, the following is a general process every insurer requires:

  • Inform your car insurance company or a professional agent about your policy record and request for your child’s removal.
  • Present any required documentation for this process. These documents include proof of a new car or another car insurance.

Otherwise, if your child still lives in your home, you can exclude them from your policy. All you need to do is contact your insurance company or agent and request removal. You will be asked to complete and sign a few documents to complete the process.

Should You Remove Your Child From Your Car Insurance?

While there are several advantages, like lower premiums, of removing your child from your policy, there are certain cases where you may wonder whether or not it’s a good idea. Keeping your child on your policy ensures they are covered everywhere and anywhere they are. Also, their insurance cost will be a fragment compared to having their policy.