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When Do My Kids Need Their Own Policy?

By June 12, 2022June 22nd, 2022Insurance
When Do My Kids Need Their Own Policy Blog - Mom and Son in Car
Ask Your Meyer Insurance Agent: When should my kids get their “own” auto insurance policy?

Identifying the right time to have your children get their “own” policy is not always straightforward. When children obtain their driver’s license, we list them as insured drivers on their parent’s auto policy. Insurance Carriers require all licensed household members to be listed as an operator on an auto insurance policy. It’s easy; call us to let us know when your children get their driver’s permit or obtain a regular driver’s license. 

If my child is no longer a child do I need different coverage?

If your child has moved out of your house and is no longer a dependent, they need to have their own insurance policy. 

Under most personal auto insurance policies, the “insured” covered by the policy includes “family members.” Family members are limited to “a person related to you by blood, marriage or adoption who is a resident of your household.” Once an adult child moves out of the household, they would no longer meet the definition of the “family member/resident relative” on your insurance policy. We know your adult children will always be your family member. Still, unfortunately, they won’t be defined as an insured on your auto policy once they are no longer a resident in the household. Why is this important? Here are some examples to show why:

  1. Your daughter Wendy is excited to go to her former South Dakota State University roommate’s destination wedding in Rapid City, South Dakota. She rents a car and doesn’t buy the insurance offered by the rental car company. If she were to be in an accident, your insurance policy’s liability and physical damage would not extend to the rental car.
  2. Your son Tyler borrows his friend’s truck to move from an apartment in Aberdeen, South        Dakota and to a new apartment in Sioux Falls South Dakota. He rear-ends another vehicle, injuring the other vehicle’s driver. Since Tyler is no longer a resident of your home, he has no liability coverage for the other driver’s bodily injury or the property damage to the other vehicle.
  3. Your child is crossing the street in Sioux Falls and hit by a hit-and-run driver. There would be no medical payments or uninsured motorists’ coverage for their injuries. Same if they are riding a bicycle and struck by a vehicle that was uninsured, underinsured, or left the scene.


Your child will have to pay these expenses without the right auto insurance policy. Some of our most significant claims come from the uninsured or underinsured motorist’s coverage. Listing people and drivers correctly on your policy matters. 

Another factor in whether to keep your child on your insurance is how the vehicle is titled. For some companies, all vehicles on an insurance policy must be titled to the named insured. If your son or daughter has their own car titled in their name (even if they still reside in your home), they might need to have their own insurance policy. Some companies do allow vehicles to be titled in different names – this is something that you should talk to your agent about.  

Each insurance company has its own guidelines, so it is best to talk to your Meyer Insurance or Roerig Insurance agent about your specific details.