Moving out is an exciting experience; it is the first time you get the true taste of adulthood. This step will change many things, especially when it comes to the expenses you will have to cover, including your rent, utilities, groceries, and more.
Other important expenses like car insurance might change when you move out on your own, so saving on these expenses can make a big difference when you are just starting off. If your parents’ car insurance currently covers you, you could be wondering, how long are you covered under your parents’ car insurance after you move out?
This article will highlight everything you need to know about how long dependents can stay on their parents’ car insurance. Keep reading for a few tips on finding the best car insurance quotes for first-time insurers.
Why Do People Want To Stay On Their Parents’ Car Insurance?
While car insurance can be expensive, it is definitely important to have, because the last thing you want is to get into an accident without any cover. If you don’t have car insurance coverage and an incident happens, this could lead to a stressful financial situation.
Having car insurance not only protects you financially but can also give you peace of mind. Most comprehensive car insurance plans cover accidents, damage to the vehicle, theft, and claims from third parties.
The common perception of young adults who want to stay on their parents’ car insurance is that they are simply spoiled and are just ‘sponging’ off their parents. However, this is most often not the case. It’s a better financial decision for the family to pay for multiple vehicles together rather than in separate policies.
When it comes to car insurance that has multiple vehicles on one policy, the policyholder will usually pay less in total for all the cars’ premiums. This is one of the main reasons young adults prefer to stay on their parents’ insurance.
Can You Stay on Your Parents’ Car Insurance If You Move Out?
Unfortunately, once you have moved out of your parents’ house, you will no longer be able to remain on their car insurance policy. The only exception is if you have moved away because you are studying. In this case, you are still considered a dependent and you are eligible to stay on their insurance plan.
Once you decide to move out and become an independent adult, you will have to apply for your own car insurance if you want to be covered. It is important to remember that you should never lie about your address when filing a car insurance claim because this will not work in your favour. The insurance company will ask you to pay for the damages from your pocket.
How Long Can You Stay On Your Parents’ Insurance?
The answer to this will vary between car insurance companies. Usually, insurance providers allow young adults to remain on their parents’ insurance policies as long as they are still living with them. Most insurance providers prefer that adults who are no longer officially dependent on their parents should apply for their own car insurance plans.
If you are having trouble deciding whether you should remain on your parents’ car insurance plan or apply for your own, you can ask yourself the following questions:
- Have you moved out of your parents’ home?
- Do you pay for all of your own expenses?
- Do you have a full-time job and are you no longer studying?
- Is the car registered under your name?
If you have answered yes to all of these questions, you should consider applying for your own insurance policy. In South Africa, there is a good variety of insurance providers to choose from, including Outsurance, Discovery, MiWay and many more. While it can be stressful to select a car insurance policy, a good idea when applying for car insurance is to compare quotes between different insurance providers and find the best fit for you.
How To Remove Yourself From Your Parents’ Car Insurance
If you are moving out of your parents’ house, you will need to remove yourself from their insurance plan to apply for your own insurance policy. While this is a simple process, it can be time-consuming.
Insurance providers usually make this process a little longer because they want to ensure that they are not held liable. This is especially true if you do not have coverage once you have moved out of your parents’ home.
Here are some common questions insurance providers will ask, as well as the documents you will need to provide to be removed from your parents’ car insurance policy:
- Proof of new address – All documents that are considered proof of address should include the applicant’s name, complete address, and the date of the document. A few documents you can use to provide your proof of residence include a utility bill, TV license, and Tax Clearance Certificate.
- Proof of new insurance policy – Most insurance providers could request proof of a new insurance plan. The main reason for this is to protect themselves, as they can see that the insurance policy member will not be left without cover.
- Removable request form – You will need the document to be signed by the policyholder to prove that they are aware of this change in the car insurance policy.
Final Thoughts on Staying on Your Parents’ Car Insurance If You Move Out
Once you move out of your parents’ house, you can no longer be insured on their car insurance policy. This means that you will need to apply for your own car insurance plan.
While this can be overwhelming, it is important to have car insurance cover. After all, the last thing you want is to have an accident or damage your car without any cover, which can lead to a stressful financial situation.
Carefully consider all the changes that come with moving out, and only go ahead with it once you are fully ready. Paying for your own car insurance can be scary at first, but with affordable options available in South Africa, it is totally doable.