Have you ever wondered "When Should My Kid Get His Own Car Insurance?" We get this question often, and the following post is our answer. Listed below are the most common situations where you might decide it’s time for your kid to get his own Ohio car insurance.
When your kid reaches age 18
When your kids are minors, you are ultimately liable for their actions. So, when they get their license and are driving your car and T-bone someone, you’re on the hook.
But, when they reach adulthood, do you still want that responsibility? Or would you rather eliminate that liability altogether? Remember, if they’re driving a vehicle titled to you, on your car insurance, you’re on the hook. Your policy, your responsibility.
When your kid reaches age 18 AND develops a bad driving record
If Junior racks up one too many speeding tickets or accidents while on your car insurance, it will definitely have a bad outcome on your Ohio car insurance. The least will be will be higher premiums. The worst is often cancellation. So when your kid gets his or her own policy, that helps protect your policy from their mistakes.
When your kid buys a car and titles it in his own name
Following from above, let’s say your kid turns 18 and goes and buys a car. It’s titled to him. Car insurance policies are designed to follow the vehicle, so whoever is the titled owner needs to insure the car. Once he’s got a car in his name, it’s best to get him established with his own car insurance.
When your kid needs to establish a credit history
Having bills in your kid's name not only establishes good financial habits, it also helps to build a credit history. Without being able to establish a history of payments (on-time or late), the credit bureau can't produce a favorable credit history. Without a solid, favorable credit history, getting a vehicle or home loan is next to impossible. So the earlier credit history is started, the better.
When your kid moves out of the house
When Jr.’s in his own apartment, it’s the perfect time to set him up with his own Ohio car insurance policy. And while you’re at it, make sure he gets an Ohio renters insurance policy. He’ll get an amazing multi-policy discount, as well as get his personal belongings covered. Additional peace of mind for mom and dad.
These are the most common situations we see at Alan Galvez Insurance. If you've been wondering when your kid should get his own Ohio car insurance, we hope this guide helps you.
We have years of experience helping kids transition off parents' policies- our companies make it pretty easy and painless. Please contact us to discuss your situation- we can do the same for you! You can also request your Ohio car insurance quote online and we'll get back with you quickly.