We all want to keep children as safe as possible. One of the things we do for them is to add them to our car insurance policy. But many of us struggle with knowing when to remove them from our insurance. Removing a child from your auto insurance is a difficult decision to make. We’ve identified five common reasons why removing a child from your auto insurance might be the right thing to do.
Your Child May Need Their Own Policy If
- They Turn 18
Once they are a legal adult, you can decide how much legal responsibility you want to maintain and how much responsibility your child is ready for.
- They Have A Bad Driving Record
Moving violations and accidents will cause your insurance costs to go up. Removing them from your policy will keep these mistakes from affecting your rates.
- Your Child’s New Car is Titled in Their Name
If the car your child is driving is registered under their name, they’ll need their own policy. If the car is co-titled, they can remain on your car insurance. Car insurance follows the car – so whoever is on the title must carry the insurance.
- They Moved Out of the House
Once the day comes and your child is ready to gain this level of independence, they also need to know that they’ll no longer be able to remain on your insurance plan. Moving out can create potential gaps in coverage if they were to be injured in an accident.
- They Want to Establish Credit
Once your child begins paying their own bills, they’ll also begin creating credit history. Paying for their own insurance is one way to help prepare for larger purchases later in life.
One of our carrier partner, Nationwide, produced a great article that further explains this topic. As you begin entering this next parenting chapter, reach out to Reliable Agency’s team of insurance advisors to start having these discussions. Having a youthful driver is stressful enough. The decision to remove them can be a difficult one! Reliable Agency can help make a seamless transition while continuing to protect the assets you have built up over the years.