Can you be on parents' car insurance after 26?

You can if you live at home. As long as you and your parents share a primary address, you can usually remain on their policy — even if you co-own the car. But, once you move out, you’ll need to secure your own coverage.

What is the best car insurance company?

While the best car insurance company will be different for each driver, Bankrate has identified a couple of companies that stand apart from the rest. Drivers looking for top-notch customer service may want to get a quote from Amica, as it won the 2025 Bankrate Award for Best Car Insurance Company for Customer Experience and tied with USAA for Best Car Insurance Company Overall. The better question to ask is “what is the best car insurance company for me?” To find out, you’ll first need to hone in on what is most important to you, whether it’s cheap rates, local agencies near you, digital policy management options or something else entirely. Once you have a better idea of what you need from your insurer, look at Bankrate’s list of best car insurance companies to help you get the ball rolling.

Do car insurance costs really go down at 25?

In general, yes. According to Bankrate’s analysis of rate data from Quadrant Information Services, car insurance rates tend to trend downward from ages 25 to 60. Generally speaking, the more driving experience a driver has behind the wheel, the less risk they pose to their insurance company. This is especially true for drivers in that age group who do not wrack up driving infractions and remain claims-free. If you want to find the cheapest car insurance for you, it’s a good best practice to request quotes from several companies for the same coverage types and levels.

How does car insurance work with divorced parents?

It mostly depends on custody arrangements and the child’s primary residence. In most cases, the custodial parent adds the child to their policy when the child starts driving. The non-custodial parent should verify with their insurer if they need to do the same. In joint custody cases where the child has regular access to cars at both homes, it’s likely that both parents will need to add the teen to their insurance policies. To be sure, it’s wise to check with your respective insurance carriers for their requirements.

Can I be on my parents’ insurance?

Written by

Natalie Todoroff,

Edited by

Mariah Posey

Published on June 20, 2025 | 7 min read

Bankrate is always editorially independent. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation of . Our content is backed by Coverage.com, LLC, a licensed entity (NPN: 19966249). For more information, please see our . Our is to ensure everything we publish is objective, accurate and trustworthy.

Key takeaways

You can usually be on your parents’ car insurance policy if you live with them, regardless of how old you are.
If you’re eligible to do it, it might pay to stay on your parents’ insurance policy. Car insurance for younger drivers on their own is expensive, and remaining on your folks’ policy can help you save.
You won’t be able to be on your parents’ car insurance policy if you no longer live at home, even if your parents technically own your vehicle.

Younger drivers pay some of the highest average car insurance premiums. Staying on your parents’ car insurance policy costs less than going at it alone, but not everyone is eligible to remain on a family plan. To stay on your parents’ auto policy, you’ll need to live at their address. If you have your own place and own your own vehicle, you’ll need to get your own policy.

Should you stay on your parents’ insurance policy?

If you’re eligible to do it, staying on your parents’ insurance policy can be a smart financial move. “Youthful operators” — those under the age of 25 — are often charged some of the highest car insurance rates when they buy their own policies. By remaining on your parents’ policy, you can benefit from their lengthier safe driving records and payment histories. Plus, staying on a parent’s policy can help young drivers establish a coverage history, which could lead to cheaper rates in the future.

When you can be on your parents’ car insurance policy

To be on your parents’ car insurance policy, you’ll need to meet some criteria:

You co-own the car with your parent and live at home with them: If you and your parent co-own the car, you can be listed on the same insurance policy. This arrangement is quite common, especially for younger drivers who are not yet financially independent.
Your parents own the car, and you live with them: If your parents own the car you’re driving and you live at the same address, you can be on their auto insurance policy. You’d be considered a covered driver for that vehicle.
You are a college student and drive your parents’ car when you are home: If you’re a college student who drives your parents’ car only when you’re home for holidays or vacations, you can typically remain on their policy as a covered driver.
You are a college student and brought your car to school: If you brought your car with you to college, most insurers will allow you stay on your parents’ policy. As long as your primary residence is still your parents’ address, your insurer will likely allow you stay on your parents’ insurance. However, you should take extra care to ensure this is the case if you attend school out of state.

In most cases, you are allowed to be on your parents’ car insurance policy if you live with them. This even applies if you are married; as long as you and your spouse live in your parents’ household, it’s possible to be added to their car insurance policy. To do so, your parents would need to add the vehicle to their policy, which will likely cause rates to increase. However, depending on the insurer, the rate uptick may still be cheaper than the cost of a whole new policy. Plus, it’s not uncommon for car insurance companies to extend multi-car discounts to drivers with more than one vehicle.

When you cannot be on your parents’ auto insurance

While, unlike other forms of insurance, there is no strict age limit for how long you can stay on your parents’ policy, there are a few instances where it is not allowed:

You own your car: If you own your car outright, you’ll usually need to have your own auto insurance policy. This is especially true if you don’t live with your parents.
You co-own a vehicle with your parents but do not live at home: If you do not live at home with your parents but co-own a vehicle with them, your parents may need to be added to your insurance policy. Their driving profiles would not influence your insurance rate, but as co-owners, their names would need to be on your insurance policy paperwork.
You no longer live at home: If you’ve started renting your own apartment, whether it’s near your parents’ house or out of state, you will likely need to purchase your own policy.
You do not live with your parents, but they own your car: Even if your parents own your car, if you do not live with them, you may not be able to be on their auto insurance policy. Most insurance companies require the primary driver of the vehicle to have their own insurance policy. If your parents own your car, they will likely need to added as non-drivers on your insurance policy. Like with co-ownership, your parents’ driving profiles do not usually affect your insurance rate.
You are financially independent: If you’re financially independent and don’t live with your parents, you’ll generally need your own auto insurance policy. This is to ensure you’re responsible for any incidents that occur while you’re driving.

Can I add my car to my parents’ car insurance policy?

Say you’re moving back in with your folks, but you own your own car. Whose insurance should you be on? In most cases, you can choose to either have your own policy or be added to your parents’. However, in some states, you won’t have the option to rejoin your parents’ policy, and you’ll need to maintain your own coverage.

If your state allows it, it may make more financial sense to rejoin your parents’ policy. Younger drivers on their parents’ auto policies usually pay less than those on their own. But, if you’re moving back and don’t intend to stay long, you may be better off hanging onto your own policy.

Comparing the cost of individual and parents’ car insurance policy

To illustrate just how much young drivers can save by remaining on their parents’ policies, Bankrate has analyzed rate data from Quadrant Information Services. The table below displays average full coverage car insurance rates for drivers aged 18 to 21 on their own policies versus those on their parents’ policies. Drivers on their own policies are renters with good credit and a clean driving record.

Age	Full coverage on own policy	Full coverage on parents’ policy	Savings from remaining on parents’ policy
18-year-old	$7,382	$4,968	$2,414
19-year-old	$5,977	$4,634	$1,343
20-year-old	$5,464	$4,085	$1,379
21-year-old	$4,450	$3,747	$703

How long can I be on parents' car insurance policy?

There’s no set age limit for how long you can stay on your parents’ auto insurance policy. However, insurance companies typically require that you live at the same address as your parents if you’re an adult on their policy. If you move out or purchase your own vehicle, you’ll likely need to get your own insurance policy.

Is it cheaper to be on my parents’ car insurance?

Generally, it is cheaper for younger drivers, particularly those under 25, to stay on their parents’ car insurance policy. Car insurance rates are, largely, calculations of risk: the riskier a driver is to insure, the more expensive their policy will be. Younger drivers are usually seen as higher-risk drivers because of their lack of experience behind the will and higher accident rate. Data from the Insurance Institute of Highway Safety (IIHS) shows that motor vehicle crash deaths are highest for drivers in their 20s, a rate of 18.2 deaths per 100,000 people for drivers aged 20 to 24. To account for the added risk, insurers typically charge drivers in this age bracket higher rates.

Insurance companies also consider financial risk, not just accident risk. If you’re a younger driver buying insurance for the first time, you don’t have a lengthy payment history — a green flag most insurance companies reward with a lower rate. When you join your parents’ policy, you get to benefit from their multiple years of on-time insurance payments.

Tips to lower car insurance rates for teens on their parents’ policy

There are several strategies to lower car insurance costs for teen drivers on their parents’ policy:

Good student discount: Many insurers reward good grades with a discount on car insurance. How much you can save will depend on your insurer.
Distant student discount: If your teen elected not to bring their car to college, you may be able to lower their insurance rate with a distant student discount. You may also see this referred to as an “away-from-home” discount.
Choose a safer vehicle: Make and model can have a significant impact on insurance rates. Before you get your teen their first car, you might want to look up the vehicle identification number (VIN) on any potential vehicles to get insurance quotes. Vehicles equipped with safety features may sometimes be cheaper to insure.
Enroll in a safe driving course: Some insurers offer defensive driving courses specifically for teens. Upon completing the course, you may earn an insurance discount.
Consider a telematics program: A telematics device tracks your driving habits and reports them to your insurance company. Good, safe driving habits are typically rewarded with insurance discounts.

Can I drive shared vehicles if I’m not listed on my parents’ insurance?

Imagine you’ve moved out, and are returning home for an extended period — maybe it’s the holidays or you’re in between leases. If you borrow a parent’s car while you’re home, you might be covered by their policy under something called “permissive use.” However, this won’t be the case with every single policy. Although most insurance companies will cover drivers with permissive use if they get into an accident, some may deny a claim if it comes from someone not explicitly named in the policy. Before getting behind the wheel, read the policy carefully to ensure that, even if you’re not a listed driver, you can still benefit from its financial protection.

Frequently asked questions

You can if you live at home. As long as you and your parents share a primary address, you can usually remain on their policy — even if you co-own the car. But, once you move out, you’ll need to secure your own coverage.
While the best car insurance company will be different for each driver, Bankrate has identified a couple of companies that stand apart from the rest. Drivers looking for top-notch customer service may want to get a quote from Amica, as it won the 2025 Bankrate Award for Best Car Insurance Company for Customer Experience and tied with USAA for Best Car Insurance Company Overall.

The better question to ask is “what is the best car insurance company for me?” To find out, you’ll first need to hone in on what is most important to you, whether it’s cheap rates, local agencies near you, digital policy management options or something else entirely. Once you have a better idea of what you need from your insurer, look at Bankrate’s list of best car insurance companies to help you get the ball rolling.
In general, yes. According to Bankrate’s analysis of rate data from Quadrant Information Services, car insurance rates tend to trend downward from ages 25 to 60. Generally speaking, the more driving experience a driver has behind the wheel, the less risk they pose to their insurance company. This is especially true for drivers in that age group who do not wrack up driving infractions and remain claims-free. If you want to find the cheapest car insurance for you, it’s a good best practice to request quotes from several companies for the same coverage types and levels.
It mostly depends on custody arrangements and the child’s primary residence. In most cases, the custodial parent adds the child to their policy when the child starts driving. The non-custodial parent should verify with their insurer if they need to do the same. In joint custody cases where the child has regular access to cars at both homes, it’s likely that both parents will need to add the teen to their insurance policies. To be sure, it’s wise to check with your respective insurance carriers for their requirements.

Methodology

Bankrate utilizes Quadrant Information Services to analyze April 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

$100,000 bodily injury liability per person
$300,000 bodily injury liability per accident
$50,000 property damage liability per accident
$100,000 uninsured motorist bodily injury per person
$300,000 uninsured motorist bodily injury per accident
$500 collision deductible
$500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2023 Toyota Camry, commute five days a week and drive 12,000 miles annually. Bundling and paperless billing discounts are applied.

These are sample rates and should only be used for comparative purposes. Your quotes will differ.

If otherwise specified, the base profile has been modified with the following driver characteristics:

Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit or limit the use of credit as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.
Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction and lapse in coverage.
Rates were calculated by evaluating our base profile with the following differences in mileage: 2K, 5K, 12K (base), 15K and 20K.
Unless otherwise stated, rates are for 2023 vehicle models. For new vs used vehicles, we included the following year in our calculations: 2013.
Rates were calculated by evaluating our base profile with the ages 18-70 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations. For teen drivers, rates were determined by adding a 16- or 17-year-old teen to their 40-year-old married parents’ policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy.
The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.
Rates were evaluated based on the following marital/family status: single (base), married, 40-year-old married man and woman. Marital status is not a rating factor in Hawaii and Massachusetts.