Guide to Getting Off Your Parents’ Car Insurance

Whether you’ve just purchased your first vehicle on your own or are ready for financial independence, it may be time to switch off of your parents’ car insurance policy. Searching for a new auto insurance policy can be a confusing experience, especially for those looking for their own policy for the first time. Here are a few things to keep in mind if you’re considering getting off your parents’ car insurance.

Know when to switch

Many parents opt to keep their kids on the family car insurance policy until they move out of the house or graduate college, as it is often more affordable than if a teenager bought their own insurance policy. However, once you move out or buy your own car, some insurance companies may require you to get your own policy. Check your policy or get in touch with your insurance agent if you’re unsure whether this applies to you.

Understand your finances

Before you start shopping for a new auto insurance policy, take stock of your finances. Consider your monthly budget and set a range of what you can afford to pay for your insurance policy. You may also want to think about any savings or emergency fund. How much could you reasonably pay out of pocket for repairs or damages in the event of an accident? Having a good grasp of what you’re able to pay will help you choose the right coverage that fits both your vehicle and lifestyle.

Be prepared to shop around

It’s not uncommon for young adults to stick with the same insurance company their parents use. However, just because you’re familiar with that company doesn’t necessarily mean they have the right plan to fit your needs. Now that you’re no longer on your parents’ plan, there’s a good chance your rates will go up, so you may need to look around at different policy levels and options before you find the one that’s right for you. Take the time to compare your options for coverage levels and whether any discounts are available.

Brush up on terminology

There are a lot of terms that you’ll see in auto insurance policies that you may not have encountered before. From roadside assistance and uninsured motorist coverage to comprehensive deductibles and liability coverage, it’s easy to get intimidated by all the terminology. For a quick overview, check out our overview of auto insurance options and features or our blog where we define the insurance jargon.

Don’t be afraid to ask for help

The first time shopping for your own car insurance policy can be confusing and feel high-pressure. There’s no shame in asking your parents, a friend or an agent to help you navigate through the process, options and terminology. Having some seasoned guidance can be a huge help and local agents are always happy to walk through your goals and available options or answer any questions you may have.

We’re here for you

If you have questions or concerns that you want to discuss, connect with your local OKFB agent today. If you have any insurance-specific questions, we would love to help you find the coverage that best meets your home, auto, commercial and life insurance needs.

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