If you had a car in high school, there is a good chance you were on your parent’s insurance policy. However, if you are moving away to college or moving out after graduation, you may need to find your own insurance policy. Here are key points to keep in mind when determining whether or not you need car insurance after leaving your parents’ house.
Will You Be Driving Your Own Car?
There is no need to have insurance on your vehicle if you aren’t planning on driving it. This may be the case if you live on campus or move to a city that has a good public transportation system. If anyone else wants to drive your car while you are away, that person should insure the vehicle in their name.
Are You Moving Out of State?
If you are planning on driving your vehicle in another state, you will need to get your own car insurance policy. This is because insurance companies only provide policies within the state they operate in. In most cases, you have several days or weeks after you move to complete your switch to a new policy.
Can You Get Better Rates on Your Own?
Drivers under the age of 25 tend to pay higher rates compared to other drivers with similar records. However, there may be ways to show insurance companies that you are responsible and deserving of a lower rate despite your age. Getting married or having a good credit score may help you get a better rate on your own than you do on your parents’ policy.
The Consequences are Severe If You Don’t Have Insurance
Whether you choose to stay on your parents’ policy or buy your own, make sure you have adequate coverage. Failure to carry valid insurance is a crime in all 50 U.S. states. You may also be liable for any damages incurred in an accident if you don’t have auto insurance. If you are involved in an accident caused by a driver with inadequate coverage, it may be worthwhile to talk with a lawyer.
Moving out of your parents’ house can be both exciting and liberating. However, it also means you are now responsible for buying car insurance and other things on your own. Taking the time to compare policies from multiple companies may help you find auto insurance that fits your needs and your budget at the same time.
This article was contributed by guest author Eileen O’Shanassy.