Gianetta Palmer is a writer for CarInsurance101.com, copywriter, and essayist. Her work has appeared in EverydayHealth.com, Healthline, and The Dyrt Magazine. She is the author of Scrunchie-Fried and writes a lot about car insurance in her spare time.

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Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific car insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. She also specializes in automa...

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Reviewed by Melanie Musson
Published Insurance Expert

UPDATED: Oct 22, 2020

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Just What's Essential

  • Car insurance for teens is higher than any other age group.
  • Adding a teen to your insurance policy as a named driver is the cheapest way to insure them.
  • Good student and safe driver discounts can help lower young driver car insurance rates.
  • Comparison shopping will help secure the cheapest rates for car insurance.

Car insurance is often the first major bill a teenager or young adult takes on independently. Unfortunately, rates for teen drivers are higher than any other age group. This leads many teens to ask, “Can my car insurance be in my parent’s name?” and, “If my parents own my car, whose name is on the ticket?”

Should you put your car insurance in your parent’s name to help minimize costs? We’ve put together a short guide to answer all of your questions. By preparing in advance, you can make securing young drivers’ car insurance as simple and painless as possible.

Whether you plan to put your car insurance in your parents’ name or your own, compare affordable car insurance quotes now by entering your ZIP code into our FREE tool above.

Table of Contents

Should I buy my own car insurance policy or be added to my parents?

A lot of drivers of varying ages ask us, “can my parents insure my car?”. The truth is, you can stay on your parents car insurance policy as long as you need to. When should you get your own insurance? That depends on what you and yoru family are most comfortable with.

Usually, if you live away from home and predominately drive your own vehicle, you do not need to go under your parent’s car insurance policy. You are independent enough to purchase your own policy.

However, if you’re a young driver, having a policy in your name will be more expensive in the beginning. If you’re under the age of 25, the costs can be unrealistic. Therefore, staying on a parents’ policy might be the only viable option for you.

It will almost always be cheaper to have the child’s car insurance in the parent’s name. When should your child get their own insurance? That is up to the family to decide independently. 

The average cost for car insurance is $84 per month or $1,009 annually. For drivers under 25, that average is much higher.

See just how much more drivers under 25 pay for car insurance by looking at the data in the table below. The data shows real monthly rates for teen drivers in Maine and Florida, where car insurance is some of the least and most expensive in the country, respectively.

Maine and Florida Average Monthly Car Insurance Rates for Teenagers
Driver DemographicsGEICO
(Maine)
Progressive
(Maine)
GEICO
(Florida)
Progressive
(Florida)
19-year-old male$65.54$146.37$209.12$303.54
19-year-old female$104.44$137.30$202.60$310.61
18-year-old female$130.10$227.11$231.07$379.45
18-year-old male$143.02$243.22$251.94$401
17-year-old female$197.74$271.74$235.60$511.33
17-year-old male$207.49$293.96$260.02$527.45
16-year-old female$234.54$245.07$332.04$501.55
16-year-old male$246.19$265.07$374.47$517.67
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Young drivers pay two to three times more per month for car insurance when the policy is in their own name. Fortunately, discounts can help. Qualifying for safe driver and good student discounts will lower your monthly premiums.

Believe it or not, the type of car you drive will also impact your rates. According to the Insurance Institute for Highway Safety, used car models that have good safety ratings, a four or five-star crash test ratings from the National Highway Traffic Safety Administration, and above average insurance loss ratios will lead to better ccar insurance prices, even for young drivers. 

Check out the video below to learn more about purchasing a car make and model that will help keep yor ccar insurance costs down.

A safer vehicle will help protect you if an accident should occur. It will also help minimize your monthly rates, no matter if you chose to stay on your parents’ policy or purchase your own. 

If you do live with your parents and predominantly drive their cars, you can buy car insurance under your parent’s name. Your parents can add you to their car insurance policy as a permissive use driver. 

This means that your claims will be covered regardless of what vehicle you drive on their policy. It also means that first-party medical coverage will extend to you if you are ever involved in a car accident, whether or not that accident involves a car you own.

Insurance policies follow the car. So while it is uncommon to be on your parent’s insurance if you don’t live with them, you can still put your car insurance in your parent’s name.

You may be wondering, what age can can I no longer be on my parents car insurance? Don’t worry about it too much, becasue there is no age limit. How long you can be on your parent’s insurance only depends on how often you drive their cars. 

Once you move out and purchase your own vehicle, you’ll need your own insurance policy. Until then, your parents can add you to their insurance to help keep your costs low.

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Why are car insurance rates for young drivers so high?

Young drivers under 25 don’t have as much driving experience to base insurance rates on, so companies must rely on statistical information to determine how much risk a young driver will pose. 

According to statistics reported by the Insurance Information Institute, drivers under the age of 25 are involved in the most fatal accidents, despite making up the lowest percentage of all licensed drivers.

See what we mean in the table below, which features data from the Insurance Information Institute.

Percentage of Drivers Involved in Fatal Accidents by Age
Driver Age GroupPercent of Licensed DriversPercent of Involvement in Fatal Accidents
16 to 205.30%35.60%
21 to 246.40%34.90%
25 to 3417.70%27.30%
35 to 4416.50%22.20%
45 to 5417.40%20.70%
55 to 6417.40%18.60%
65 to 7412.10%15%
Over 747.20%19.20%
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As you can see, young drivers fit the definition of high-risk drivers. Therefore, their rates are much higher than average.

Putting car insurance under your parent’s name can help offset the cost somewhat. However, if you add an 18-year-old driver with a car under the parents’ name for insurance, the parent’s rates will still rise. 

Fortunately, the rate increase for putting car insurance in your parent’s name will be much less than a separate policy for a young adult’s vehicle.

Does the name on the car title affect car insurance?

Many drivers ask, “Can i be on my parents’ car insurance if the car is in my name?” It is a question we hear time and time again. While it’s technically not impossible, it is extremely difficult to be on your parent’s car insurance if the car is in your name. 

Most of the top 10 car insurance companies by market share require the name on the title of the car to match the name of the insurance policyholder.

It is not okay to have insurance in your parent’s name when you go to title your car because it presents a conflict of interest to the insurance company.

If that car is damaged in an accident, the insurance company must make the check out to the vehicle’s owner. If the policyholder is not the owner, the company will not be able to issue payment. However, you’ll receive the car insurance payout after an accident if the car is in your parent’s name and you’re on their insurance.

While some insurance agencies will allow you to be under your parent’s car insurance policy with the car in your name, the practice is frowned upon by most companies.

To those asking, “can I drive a car under my parents’ name?”, the answer is yes. As long as you are a named driver for their policy, you’ll be fully covered by the insurance.

In order to have a car in your name under your parent’s insurance, your parents will need to be listed as owners on the vehicle’s registration. If you are the sole owner listed on the title, you should get your own insurance policy.

Should I add my parents to my car insurance policy?

Some people might ask, “can I put my mom on my car insurance?”. If you do choose to purchase your own auto policy, you should be sure to add at least one other person to your policy as a driver. Until you start your own family, you can put your mom or dad on your car insurance.

You want to add an additional driver to your policy so someone other than you is able to handle your policy affairs in the event of an emergency.

For example, if you leave the country to study abroad or serve in the military, you will probably leave your vehicle behind. If that vehicle sustains damage while it’s parked, you would be unable to handle the claim yourself.

If no one else is listed on your policy, you will need to wait until you come home in order to repair the damage to your car.

If someone is listed on your policy, however, they can call and file the claim on your behalf and have the vehicle repaired for you. Not only is this more convenient, but sometimes necessary.

Having the ability for a family member to file a claim on your policy and seek repairs is especially helpful if you are ever injured in a car accident and are unable to handle the claim yourself.

Whether you choose to stay on your parent’s policy or seek your own policy, it’s important to understand exactly how your coverage works and what your insurance is paying for.

If you have any questions about your policy, be sure to ask your insurance agent; he or she will be happy to discuss your policy with you and make any necessary changes.

Frequently Asked Questions: Can my car insurance be in my parent’s name?

You asked us, “Can I put my car on my parents’ insurance,” and “Can I put my car insurance in my parents’ name,” and we gave you an answer. Now you know with cetainty that you can go on your parent’s car insurance policy, regardless of your age. 

You can determine if it is cheaper to be on your parent’s car insurance, or if you should take out yoru own policy. In the meantime, check out our frequently asked questions below for even more helpful information.

#1 – Can my son drive my car if he doesn’t live with me?

Yes, but you should consider adding any person who drives your vehicle regularly as a named driver on your car insurance policy.

#2 – Can a car be registered in one name and insured in another?

Wondering if you can add a car to your insurance that is not in your name? Or, if you can put insurance on a car that is not in your name? No, you cannot. Usually, insurance companies require the name on the vehicle’s registration to match the name on the insurance policy.

#3 – Can I add someone to my insurance that doesn’t live with me?

Yes, you can add virtually anyone who drives your vehicle regularly to your insurance policy as a named driver.

#4 – Can you be on your parent’s insurance if you don’t live with them?

Yes. Anyone who drives a vehicle regularly shouldbe listed as a named driver on an insurance policy. 

#5 – Can I stay on my parents’ car insurance after 26?

Yes, you can still have car insurance under your parent’s name after you turn 26. There is no age cut off date as long as you still live at home. if you are no longer a dependent living at home, you can still be added as a named driver. 

Similarly, your parents can add you to their policy even if you are already 26 years old. 

#6 – Can I have car insurance with two names on the title?

Yes, usually married couples own a vehicle with two names on the title. Often, companies will require you to include both names on the policy in order to purchase car insurance with two names on the title.

Now that you know if your car insurance can be in your parent’s name, compare quotes now by entering your ZIP code into our FREE tool below. Which car insurance company is for you? Find out now.