Unlike health insurance, there isn’t an age limit that dictates when you must be removed from your parent or guardian’s auto policy, but there are a few common factors that affect when it may be time to make the change.

The time has come! You're officially all grown up and ready to dive into another stage of adulthood: getting your own auto insurance policy. In Kentucky, and most other states, it is required by law for drivers to maintain insurance coverage at all times. Making sure you are covered, either under a policy owned by your parent/guardian or yourself, is essential for getting behind the wheel. But when is the best time to seek out your own auto policy? That question can be difficult to answer and is oftentimes unique to your specific situation, but Kentucky Farm Bureau Insurance is here to help!

When is the right time?

Unlike health insurance, there isn’t an age limit that dictates when you must be removed from your parent or guardian’s auto policy, but there are a few common factors that affect when it may be time to make the change. For example, if you own or lease a car of your own, or if your permanent residence is no longer your parents’ address, then you should have your own insurance.

If you are a full-time student or living in the same household as your parent(s) or guardian(s), then you are permitted to remain on their policy. If you are in this category, it is typically more cost-effective to remain on their insurance, as they are likely to have a lower premium than if you were to start your own policy. You can also use this time to build a positive credit rating, which could help you save on your insurance premium when it is finally time to go out on your own.

Be aware that your previous claims and driving record history–even if you are listed under a parent or guardian’s policy–will determine how you meet underwriting requirements and the rate you’ll pay for auto coverage.

Now’s the time! What do I do?

• Make sure the title is in your name. If the vehicle you drive is in a parent or guardian’s name, they will need to transfer it to you before you can get your own auto policy. You can find additional information for registering your car in Kentucky at drive.ky.gov.
• Meet with a local KFB Insurance agent. During this meeting, it will be important to ask questions as you open your own auto policy. What coverage best fits your needs? What discounts are available? Kentucky Farm Bureau offers several ways to save on auto insurance, like the good student discount for eligible full-time students. You’ll want to leave with a full understanding of what your coverages provide you.
• Purchase your policy and keep track of documentation. After everything is official, keep your declaration pages in a safe place and be sure to put a printed proof of insurance card in your vehicle.
• Update your status on your parents’ policy. Once your new insurance policy has been confirmed, make sure your parent or guardian’s policy has also been updated. Have them contact their agent to discuss if/how you should still be listed.
• Check your coverage annually with an insurance review. For more information on annual insurance reviews, read this Life’s Blueprints article.

It’s important to remember your policy coverage is unique. It’s always best to talk with your Kentucky Farm Bureau Insurance agent concerning your specific insurance needs.

Need more information? Connect with your local KFB Insurance agent today.