How to Remove Children From a Car Insurance Policy
Steps to Taking Adult Children Off Your Insurance Policy
Removing a kid from your car insurance policy may be more difficult than you thought. Insurance carriers are wary of removing children from the parent's policy. Since they are your kids, the insurance carrier could still be held liable under certain circumstances, even if the kids are not listed on the policy. It is in the insurance carrier's best interest to force you to jump through a few hoops first.
Exclude Kid as Driver
The fastest and easiest way to get a kid removed from your car insurance policy is to exclude them as a driver.
Not all preferred carriers allow excluded drivers, but if they do, this will get the child off your policy the easiest.
Some carriers do include a fee for excluded drivers. The cost will still be less than insuring a teen driver on your car insurance policy.
Things to consider about excluding a kid from your car insurance includes that they literally cannot drive your vehicle at any time. Coverage will not be available. It is the same as driving without car insurance when an excluded driver operates a vehicle they are excluded from.
Provide Proof of Other Car Insurance
Provide proof to your car insurance carrier that your child is insured on another car insurance policy. This will definitely work if the kid in question does not live in your household. If the child does live in your household, the insurance carrier could still require them to be listed on your policy. The only other option might be to exclude the child as a driver on your vehicles. Again, they would never be able to drive your vehicles legally once excluded.
Provide Proof of New Residence
Show a utility bill or rent payment receipt to your insurance carrier to provide proof the child no longer lives at your residence. If your teen is out on their own at an early age, proof of residency will need to be provided for them to be removed from your car insurance policy.
Hopping On and Off Your Policy
It is better to leave the child on your policy instead of hopping on and off time and again. Remember, medical coverage can be extended from an auto policy even when a person is a passenger in a vehicle.
Plus, when borrowing other people’s vehicles, it is still best for a kid to be listed as a driver on some car insurance policy. Hoping for automatic coverage from the other person's vehicle without being listed is not a good idea. You and your kid could get caught with some serious out-of-pocket expenses, if not insured properly.
Continuous insurance coverage is also a factor in premium cost. Someone who has experienced any lapse in coverage is automatically considered a high-risk driver.
This will push them into a higher-cost premium bracket that continues even when their age and experience have grown up.
Weighing Cost Against Benefit
A rule of thumb is that a parent's insurance premiums will go up as much as 100% when a teen driver is added. So there is a lot of incentive to remove that young driver as soon as you can. However, your child will pay even more if they try to purchase a premium on their own, so think your choice through carefully. Your child's involvement in one uninsured incident can cost many times more.
As teens gain driving experience and establish a track record on the road, the additional cost burden they put on an insurance premium will begin to decrease.
No Age Limit Exists for Removing Children
While it may be a questionable parenting choice, there is no requirement to ever remove a child from an insurance policy, even if they continue to live with you long past adolescence. As the economy causes intergenerational households to increase in frequency, this may be a way to keep costs in check.
Insurance Information Institute. "What Is Auto Insurance?" Accessed May 3, 2020.
Consumer Financial Protection Bureau. "Teenagers and Protecting." Accessed May 3, 2020.
CarInsurance.com. "Kids Moved Out? You May Have to Prove It." Accessed May 3, 2020.
Insurance.com. "Car Insurance for Teens." Accessed May 3, 2020.