Your kid moved back home- and so did their car

Adult children are moving home in record numbers.

“Hi mom- I’m home!”

Moms (and Dads) are hearing this more and more from their young adult children as the economy is flat-lined and good jobs are hard to come by. Little Johnny or Little Susie has had their taste of independence, and it’s expensive out there. They join an all time record number of the Millennial Generation- more than 36% of young adults are now living at home with their parents.

So your kid comes home, and you are glad you can be there for them.

One of the first things you consider doing to help them, is to call your insurance agent in Texas and add your child’s car to your insurance policy. Seems smart, right? Of course this seems like the common sense thing to do. But it’s not always that easy.

Can you add your adult child to your auto insurance?
Maybe. The answer depends upon the insurance company. It also depends upon who is titled on the vehicle. Let’s take a look at the “big questions” that must be answered beforehand.

Who is titled on the car?
Is it just your child? Some companies (not many) will allow your adult child to be insured under your policy, even if they are the only one titled on the car. But most companies won’t allow this. It’s all about a thing they call insurable interest. So most of the time (though not always), if your child moves home, and you want to include their car under your policy… they need to at least co-title the car in your name.

Should you do this, even if you can?
It all depends upon your unique circumstances. Every family is different. There are important questions to ask and answer before making a decision. If your child changes the title of the car to include you (though this may not always be required)… he or she must understand that the vehicle is no longer exclusively theirs in the eyes of the law. They also need to be aware that in every case they have no right to change coverage on the policy, even if they need more. Finally, parents need to realize that accidents the child has may affect their rates in the future.
What should you do?
If your child moves home and you are thinking about adding them to your auto insurance, you need to set up an appointment with your agent to discuss whether or not this is in your best interest. Don’t make this decision without knowing all the facts and all the options.

Each situation is different.

This is an example of why having an independent insurance agent in Texas matters. No one on working at the home office of a major insurance company can possibly help you make the best decision like we can, your neighborhood insurance agent in Spicewood, TX.

Call us to discuss your unique situation at (877) 693-8882.