A study from the car insurance comparison website uSwitch.com has indicated that the average age of children using a parent's car insurance policy may have recently increased. The study compared driver ages and their car insurance coverage over the course of a year to determine whether older drivers were staying under their parents' car insurance policies. According to the study, older drivers with an average age of 31 are staying under the policy of one or both of their parents. This is a raise in the average age by 8 years.
There are a few possible reasons why a child might want (or be forced) to stay under a parent's car insurance policy. The most notable is probably cost. Older drivers typically pay less for car insurance coverage. Insurance companies use a variety of factors to decide the cost of a policy's premiums. One big determinant is age. This is because middle-aged drivers are statistically safer and make fewer claims. If a child has made several insurance claims, getting on a parent's insurance plan can save a lot of money in car insurance rates. Also, in the current economy, more and more children might be moving back in with parents after unsuccessfully trying to find a job. Young drivers aren't buying new vehicles, and may borrow a parent's car rather than pay hefty costs for car insurance, license costs and other fees associated with owning a car. This could be especially true in cities with good public transportation systems where owning a car might not be a necessity.
It's important to note that children can only legally drive on a parent's car insurance policy if they're not the main driver of a vehicle. It's not possible to buy a new vehicle and then put it under a parent's name to receive a low car insurance rate. This can be a violation of terms, and can result in major insurance issues in the event of an accident.
There are some options for drivers who want to lower their premiums, but don't necessarily want to move back in with a parent. Drivers should consider premium-lowering options such as defensive driving courses, higher deductibles and comparison shopping. Comparison shopping is particularly valuable, as it allows drivers to find a lower car insurance rate without sacrificing any coverage. Speaking with an insurance agent can be a great way to get ideas about ways to lower rates in an existing plan.
The current trends seem to indicate that the age of children on parents' policies will continue to rise, but for adults that aren't able to hop on a parent's plan, there are certainly other options to help keep car insurance quotes low.