Driving your parents’ car is an exciting experience for new drivers. However, every driver needs insurance to drive in Canada legally, including drivers who recently received their learner’s permit or G1 license.
It’s challenging to get your own insurance coverage as a very new driver. Fortunately, insurance companies typically allow parents to easily add their children to their policies. So, driving your parents’ car under their insurance policy as you develop your driving skills is an affordable way to start your journey towards independence.
Are new drivers covered under their parents’ auto insurance?
When a child receives their G1 learner’s permit, they should be added to their parents’ auto insurance policy. Your parents need to let their insurer know that you will be driving their car as you learn the rules of the road, so you will be covered if they ever need to make a claim.
Since G1 drivers can’t drive alone without a fully licensed driver, your parents or another responsible adult should be helping you drive safely from the passenger’s seat. Therefore, your parents’ car insurance rates won’t increase until you receive your G2 and begin to drive their car independently.
Why should I stay on my parents’ car insurance policy while driving my parents’ car?
Insurance for new drivers is relatively expensive because insurance companies can’t use your driving history to determine that you are a safe driver. Moreover, young drivers are costly to insure because they are statistically more likely to be involved in accidents than their older, more experienced counterparts.
You should stay on your parents’ insurance as a freshly licensed driver because it can be difficult and expensive to get insurance as the sole driver of a vehicle. So it’s more cost-efficient for you to stay covered under your parents’ policy until you’ve gained enough experience to prove to insurers that you are responsible. If you’ve been safely driving since you were a teen, you can also expect a reduction in the insurance premiums you (or your parents) pay once you turn 25.
How long can I stay on my parents’ car insurance policy?
There is no age limit or time restrictions for how long you can remain on your parents’ insurance policy. If you maintain a satisfactory driving record, you can stay on your parent’s insurance policy for as long as you regularly drive your parents’ vehicle/s and live at home.
Most insurers will also allow children to stay on their parents’ insurance policy when they move out of the family home for school. For example, say you’re a student who occasionally returns home and drives a family vehicle. In that case, your parents can insure you with an occasional driver discount If you live more than 100km away at university.
Can I stay on my parents’ car insurance policy when I move out?
Your address affects what you pay for car insurance, so your parents should tell their insurance company when you move away to avoid their insurer disputing a claim because you don’t live at the same address. This may result in you being removed from their policy. However, in some cases, you may be able to stay insured as an occasional secondary driver. If you do not have a vehicle, you can remain on your parent’s vehicle to keep continuous insurance history, this can be done even if you are not driving their vehicle at all.
Can I get my own vehicle and still be covered under my parents’ policy?
Suppose you purchase a vehicle and register it in your name. In that case, you have to purchase insurance in your own name as well. If your parents gift you one of their vehicles and transfer ownership to you, you’ll also need to buy a separate insurance policy if your name is transferred to the vehicle’s title. But, of course, there are no rules against your parents helping you out with insurance payments, or vice versa!
It may be easier to purchase insurance with your parents’ insurer since their insurance company already has access to your information. However, switching insurance companies could mean more savings. Therefore, it’s wise to shop around and get multiple quotes to find the best deal for your car insurance needs.
What can cause you to be removed from your parents’ car insurance policy?
Every insurer is willing to accept a different amount of risk from their customers. For example, suppose you were involved in several at-fault accidents or acquired multiple demerit points on your license for breaking the law while driving. In that case, your parents’ insurance company may decide not to renew their policy, and you may need to apply for a more pricey, high-risk policy.
You could also jeopardize your parents’ insurance coverage by failing to abide by the restrictions set by the Ministry of Transportation for new drivers under Ontario’s graduated licensing system. So please don’t risk it!
Finally, your parents can exclude you as a driver from their insurance. This option requires your parents to sign a form declaring that you will not drive their vehicle under any circumstances. If you are excluded from your parents’ car insurance, you are not insured if you operate their vehicle. It’s the same as driving without insurance, which is illegal in Canada.
Your parents can also remove you from their policy if they can prove you’ve changed your address or have coverage under a separate insurance policy. If you’re ready to take the next step in your car insurance journey, you can always grab a fast and free quote from aha insurance.
We hope you feel empowered to enjoy the road driving your parents’ car under the protection of their insurance. Now you know how your family can help keep you insured until you take the next big steps of purchasing a vehicle and moving out.
If you’re ready to get insured on your own, you can get a quote right here in 3 minutes without leaving your browser.
Have fun out there, but most importantly, stay safe and stay insured!