When to Remove Your Child From Your Car Insurance

Can I Drop My Child From My Car Insurance?

It's generally time to remove your child from your car insurance policy when:

• They no longer live with you. Students living away from home during the school year should remain on your auto insurance. Depending on how far away they live, they may even qualify for discounts. But once your child moves out permanently, there's no need to list them as a driver on your car insurance. You may be asked to provide proof of your child's new address, such as a utility bill in their name, before the insurer will remove them from your policy.
• Your child is covered by other insurance. You can remove your child from your car insurance if they purchase their own insurance or are listed on someone else's policy, such as a partner or roommate. Your insurance company may want to see evidence your child is insured elsewhere before taking them off your policy.
• Your child owns their own vehicle. Is your child listed as the sole registered owner of their car? If so, most insurance companies require them to have their own insurance policy and be listed as the main insured.

When You Can't Remove Your Child From Your Car Insurance

You can't take your child off your car insurance if they live with you. When you buy car insurance, you're generally required to list all the licensed drivers in your household on the policy. This includes your child as long as your home is their permanent address.

If your driving-age child lives with you but doesn't have a driver's license, your insurance company may require listing them on your policy as an excluded driver. Even though they're named on your policy, excluded drivers aren't covered by your insurance while driving your car, even if they have your permission.

Learn more >> What Is an Excluded Driver?

Pros and Cons of Removing Your Child From Your Car Insurance

Removing your child from your auto insurance has some downsides, but there are also benefits to consider.

Pros

• Can save you money: On average, an 18-year-old driver pays $271.92 per month for auto insurance, according to data from Progressive. Removing a child from your auto insurance could save you thousands of dollars annually.
• Teaches financial responsibility: Shopping for car insurance, comparing coverage and paying for their own policy helps your child learn adult skills.
• Can help your child build credit: Typically, insurance payments don't affect credit scores because they aren't reported to credit bureaus. However, paying car insurance premiums on time can help improve your child's credit score if they sign up for Experian Boost^®ø. This free feature adds eligible monthly bills, including auto insurance, to your Experian credit file, which could help improve your credit score based on your Experian credit report.

Cons

• More expensive for your child: As a listed driver on your car insurance, your child can benefit from factors such as your insurance history, driving experience, homeownership and marital status, all of which can lower their insurance costs. They'll lose many of these benefits if they purchase their own car insurance.
• Potential legal risks: If your child isn't responsible enough to maintain their own car insurance, removing them from your policy could leave them without coverage. Driving without insurance could put your child at risk of legal consequences, such as having their vehicle license or registration suspended or their car impounded.
• Potential lapse in coverage: Removing your child from your car insurance before they've found another policy can create a lapse in coverage. Because a coverage lapse can suggest they're a high-risk driver, your child will typically be charged higher premiums when they apply for car insurance and may have trouble getting coverage at all.

How to Remove Your Child From Your Car Insurance

Removing your child from your auto insurance is generally simple to do.

1. Make sure your child has other insurance coverage. Removing them from your policy before they've purchased auto insurance causes a gap in coverage and leaves your child at financial risk in case of a loss.
2. Contact your car insurance company. You can generally do this by phone, email or using the insurance carrier's mobile app and ask to have your child taken off your policy.
3. Provide any requested documentation. For instance, the insurance company may ask for proof of your child's new permanent address or proof that they have other car insurance.

How to Exclude Your Child From Your Car Insurance

If your child still lives with you, you can list them as an excluded driver on your policy by asking your insurer for an exclusion and completing a driver exclusion form. There's generally no fee for excluding a driver.

Excluding your child from your car insurance differs from removing them. Exclusion prohibits a person in your household from driving your car at all—even in an emergency. You might consider this drastic measure if your child is an extremely high-risk driver, but keep in mind that excluded drivers aren't covered by your insurance. If a child excluded from your policy causes an accident, both you and they may be held financially responsible.

Not all states or insurance companies allow excluding drivers, so check with your insurance company regarding their policy.

The Bottom Line

Watching your child grow up is bittersweet, but the day they leave your car insurance policy is just plain sweet. No matter how eager you are for that moment, don't remove your child from your car insurance until they've got coverage of their own in place.

To make shopping for car insurance simpler, your child can use Experian's free car insurance comparison tool to get quotes from multiple insurance carriers all in one place. It's a valuable tool to help them on their journey to financial independence.