Compare Rates and Save on Auto Insurance

widget-location-pin

If you drive your parents' car with their permission, their insurance usually covers you. Car insurance is mainly for the car, not specifically for the person driving it.

However, some insurance policies may have a limit on how frequently a car can be borrowed. For example, you might be allowed to drive your parents' car up to 12 times a year without being listed on their policy.

So, if you plan to drive their car regularly, it's best to get added to their insurance. This way, you'll always be protected.

Key Takeaways

carInsurance icon

If you drive your parents' car, their insurance typically covers you through the permissive use clause. However, you should be on their policy if you drive it often, say more than 12 times a year.

male icon

Permissive use does not cover unlicensed drivers, drivers who use the car for work or excluded drivers, even with the owners’ permission.

car2 icon

For those borrowing different cars often, non-owner insurance ensures consistent coverage.

Do I Need Insurance To Drive My Parents’ Car?

No, you don't typically need your own insurance to drive your parents' car if you occasionally use it with their permission.

However, "occasionally" is the keyword here. Borrowing the car every weekend doesn't count as occasional. In fact, many insurance companies have a limit, as you can only drive the insured vehicle about 12 times a year under permissive use. If you drive your parents' car with their permission a few times a year, their insurance will typically cover you. So, if you were to have an accident while driving their car, their insurance would step in.

If you're thinking about driving their car more than just once in a while, it might be a good idea to talk to them about getting added to their policy. Many car insurance companies require policyholders to add all drivers in the household to their policy.

While most insurance policies have this permissive use clause, not all will cover a driver who isn't listed on the policy. If you were to get into an accident and you're not named on your parents' insurance, there's a chance the insurance company will not cover the damages. That could mean your parents would have to pay for any repairs or damages out of their own pockets.

Limits of Permissive Use When Driving Your Parents’ Car

Most of the time, if you drive your parents' car with their consent, their insurance should cover you through the "permissive use" clause. However, there are some scenarios where you might not be covered, even if you have their permission.

You use their car frequently

Driving their car daily, like for school or work, might be viewed as "regular use." Regular drivers should be on the policy.

You’re an excluded driver

If you're intentionally left off their policy, perhaps due to past incidents, you won't be covered, even with permission.

You use the car for work

Using the car for jobs, like deliveries or ridesharing, may void coverage.

You drive the car outside of the U.S.

Some policies have limits on where the car can be driven. For instance, if you took their car on a road trip to Mexico or Canada, coverage might not apply.

You used the car for high-risk activities

If you're using the car for something risky, like racing, the insurance won't cover any mishaps.

Their policy doesn’t allow permissive use drivers

Some policies may not include permissive use or have stricter terms.

If you drive your parents’ car frequently and live at the same address, getting on their car insurance policy may be a good idea.

Am I Covered by My Parents Car Insurance?

Let's break down how your parents' car insurance and the concept of "permissive use" might apply in each of these scenarios:

Scenario
Coverage

I drove with permission, but another driver hit me

Your parents' "permissive use" clause should cover you. If the other driver's at fault but underinsured or uninsured, your parents' policy might step in.

I drove with permission, but I hit another car

The permissive use clause applies. Your parents' liability coverage addresses damages and injuries. If they have collision coverage, it'll cover their car's repairs minus the deductible.

I drove without permission, and another driver hit me

It's complex. Insurance typically follows the car, but lack of permission complicates claims. If the other driver is at fault, their insurance should cover damages. But if there's a dispute or they're underinsured, your parents' policy might not cover you.

I drove without permission, and I hit another car:

Initial damages to the other car might be covered. However, the insurance company might dispute the claim later due to lack of permission, potentially raising your parents' premiums.

I drove with permission, but I drove to Canada or Mexico

U.S. policies often cover short Canada trips but not always Mexico. In Canada, the permissive use clause usually applies. For Mexico, you might need separate insurance. Driving there without it can have serious repercussions.

In all scenarios, the specifics of the insurance policy, state regulations and the insurance company's discretion play significant roles. It's always a good idea to be familiar with the policy's terms and consult with the insurance provider when in doubt.

Can I Be Added to My Parents’ Car Insurance?

Yes, you can be added to your parents' car insurance. It's an especially good idea if you borrow their car a lot, run errands for them or want to nurture a good driving record for when you get your own policy in the future.

Being added to their car insurance policy can offer several benefits:

  • coins icon

    Cost Savings

    It's often cheaper for a young or new driver to be added to a parent's policy than to purchase an individual policy. The combined premium might cost less than the total of two separate policies.

  • male icon

    Multi-Driver/Multi-Vehicle Discounts

    Many insurance companies offer discounts for policies that insure multiple drivers or multiple vehicles. Being added to your parent's policy can help maximize these discounts.

  • carInsurance icon

    Consistent Coverage

    Being a named driver ensures you're covered every time you drive the car, eliminating uncertainties associated with permissive use clauses.

  • checkList icon

    Build a Driving Record

    Being on your parent's policy allows you to start building a driving record, which can lead to better rates in the future when you get your own policy.

  • insurance2 icon

    Gap Avoidance

    Being a named driver ensures there are no gaps in coverage, which can be crucial if an accident occurs. This is especially important if you drive the car regularly.

  • wage icon

    Shared Deductibles

    In the event of a claim, you might benefit from a lower deductible on your parent's policy compared to what you might have on a separate policy.

  • briefcase icon

    Ease of Management

    Having all drivers on one policy can simplify management and payments, making handling renewals, claims and other administrative tasks easier.

  • eye icon

    Learning Opportunity

    Being on your parent's policy can teach you about insurance, coverage options and the importance of maintaining a clean driving record, preparing you for future insurance decisions.

While there are many benefits, it's essential to discuss them with your parents and consult their insurance agent to ensure that adding you to the policy is the best decision for everyone involved.

How Much Does It Cost To Add a Young Driver to Their Parents’ Policy?

Adding a young driver to their parents' policy can vary in cost. Nationwide, for example, will extend coverage to a young driver for $2,718 per year. Alternatively, USAA offers a more cost-effective option at $2,157 annually, but its policies specifically cater to U.S. military members, veterans and their families.

Adding a teen or young driver to your insurance is essential, even with permissive use. It ensures legal compliance, provides proper accident coverage, avoids financial risks and allows them to build their insurance history responsibly.

Company
Annual Premium
Monthly Premium

USAA

$996

$83

USAA

$1,015

$85

USAA

$1,038

$86

USAA

$1,038

$86

USAA

$1,052

$88

USAA

$1,058

$88

USAA

$1,081

$90

USAA

$1,098

$91

USAA

$1,132

$94

USAA

$1,154

$96

USAA

$1,180

$98

USAA

$1,196

$100

USAA

$1,276

$106

GEICO

$1,323

$110

USAA

$1,326

$111

USAA

$1,330

$111

GEICO

$1,375

$115

USAA

$1,384

$115

GEICO

$1,393

$116

USAA

$1,451

$121

GEICO

$1,460

$122

USAA

$1,510

$126

Travelers

$1,515

$126

Nationwide

$1,519

$127

Nationwide

$1,523

$127

State Farm

$1,541

$128

Travelers

$1,547

$129

Nationwide

$1,556

$130

Nationwide

$1,565

$130

GEICO

$1,579

$132

Nationwide

$1,582

$132

Nationwide

$1,604

$134

Travelers

$1,606

$134

State Farm

$1,607

$134

Nationwide

$1,609

$134

GEICO

$1,639

$137

Nationwide

$1,658

$138

State Farm

$1,659

$138

GEICO

$1,664

$139

USAA

$1,671

$139

Allstate

$1,703

$142

Travelers

$1,705

$142

Nationwide

$1,717

$143

Nationwide

$1,730

$144

Travelers

$1,730

$144

Allstate

$1,742

$145

USAA

$1,742

$145

Travelers

$1,743

$145

GEICO

$1,745

$145

GEICO

$1,746

$146

State Farm

$1,757

$146

Nationwide

$1,761

$147

Allstate

$1,762

$147

Allstate

$1,801

$150

Travelers

$1,808

$151

State Farm

$1,810

$151

GEICO

$1,812

$151

GEICO

$1,813

$151

Nationwide

$1,819

$152

Travelers

$1,826

$152

State Farm

$1,832

$153

GEICO

$1,841

$153

Allstate

$1,869

$156

Travelers

$1,869

$156

GEICO

$1,880

$157

State Farm

$1,890

$158

USAA

$1,900

$158

Allstate

$1,909

$159

Allstate

$1,915

$160

GEICO

$1,927

$161

Travelers

$1,940

$162

Travelers

$1,953

$163

USAA

$1,966

$164

Allstate

$1,975

$165

State Farm

$1,985

$165

Nationwide

$2,006

$167

Allstate

$2,033

$169

GEICO

$2,036

$170

USAA

$2,044

$170

Travelers

$2,054

$171

State Farm

$2,060

$172

State Farm

$2,061

$172

Progressive

$2,064

$172

Nationwide

$2,066

$172

State Farm

$2,067

$172

State Farm

$2,069

$172

USAA

$2,076

$173

Allstate

$2,076

$173

Allstate

$2,077

$173

Travelers

$2,095

$175

Travelers

$2,098

$175

Nationwide

$2,109

$176

Farmers

$2,117

$176

Progressive

$2,118

$177

State Farm

$2,132

$178

Allstate

$2,136

$178

Allstate

$2,149

$179

USAA

$2,157

$180

Progressive

$2,167

$181

GEICO

$2,168

$181

Nationwide

$2,170

$181

Allstate

$2,184

$182

USAA

$2,230

$186

Progressive

$2,249

$187

GEICO

$2,253

$188

Nationwide

$2,260

$188

Progressive

$2,273

$189

Travelers

$2,305

$192

Farmers

$2,319

$193

State Farm

$2,322

$194

Allstate

$2,326

$194

Farmers

$2,334

$194

Progressive

$2,339

$195

State Farm

$2,344

$195

Travelers

$2,346

$195

State Farm

$2,353

$196

USAA

$2,354

$196

Nationwide

$2,368

$197

Nationwide

$2,372

$198

Farmers

$2,380

$198

Allstate

$2,380

$198

Progressive

$2,387

$199

State Farm

$2,389

$199

GEICO

$2,393

$199

GEICO

$2,408

$201

GEICO

$2,431

$203

Farmers

$2,446

$204

Progressive

$2,456

$205

GEICO

$2,472

$206

Travelers

$2,476

$206

Nationwide

$2,476

$206

Progressive

$2,477

$206

GEICO

$2,486

$207

Allstate

$2,488

$207

Travelers

$2,517

$210

Travelers

$2,519

$210

Progressive

$2,521

$210

Allstate

$2,525

$210

Nationwide

$2,569

$214

Progressive

$2,578

$215

Progressive

$2,580

$215

Allstate

$2,585

$215

Nationwide

$2,598

$216

State Farm

$2,635

$220

State Farm

$2,645

$220

Farmers

$2,653

$221

Progressive

$2,655

$221

State Farm

$2,666

$222

GEICO

$2,672

$223

Allstate

$2,673

$223

Progressive

$2,676

$223

Farmers

$2,676

$223

Farmers

$2,683

$224

Nationwide

$2,685

$224

State Farm

$2,687

$224

Farmers

$2,691

$224

Nationwide

$2,693

$224

State Farm

$2,716

$226

Nationwide

$2,718

$226

Farmers

$2,745

$229

Farmers

$2,784

$232

Progressive

$2,825

$235

Travelers

$2,829

$236

Progressive

$2,845

$237

Farmers

$2,863

$239

GEICO

$2,863

$239

Farmers

$2,871

$239

Allstate

$2,887

$241

Nationwide

$2,915

$243

Progressive

$2,929

$244

GEICO

$2,936

$245

Nationwide

$2,949

$246

Travelers

$2,950

$246

Allstate

$2,976

$248

Travelers

$3,030

$252

State Farm

$3,030

$253

Farmers

$3,053

$254

State Farm

$3,053

$254

State Farm

$3,055

$255

Travelers

$3,056

$255

Allstate

$3,061

$255

Farmers

$3,062

$255

Progressive

$3,065

$255

Farmers

$3,070

$256

Farmers

$3,086

$257

Farmers

$3,111

$259

Progressive

$3,115

$260

Farmers

$3,132

$261

Progressive

$3,137

$261

GEICO

$3,153

$263

Progressive

$3,153

$263

Allstate

$3,218

$268

GEICO

$3,232

$269

Progressive

$3,240

$270

Allstate

$3,292

$274

Farmers

$3,311

$276

Travelers

$3,316

$276

Farmers

$3,327

$277

Progressive

$3,351

$279

State Farm

$3,402

$284

State Farm

$3,430

$286

Travelers

$3,436

$286

Progressive

$3,454

$288

Allstate

$3,487

$291

Farmers

$3,489

$291

Farmers

$3,547

$296

Allstate

$3,561

$297

Farmers

$3,562

$297

Travelers

$3,566

$297

Progressive

$3,572

$298

Travelers

$3,700

$308

Progressive

$3,717

$310

Farmers

$3,773

$314

Farmers

$3,797

$316

Progressive

$3,847

$321

Farmers

$4,064

$339

When Should I Get My Own Car Insurance?

Once you move out of your household, you'll typically need to buy your own auto insurance policy. Insurance companies usually require policyholders to insure only those who reside at the same address, as they use factors like location, household driving habits and shared financial responsibilities to calculate premiums. If you move to a different location, these factors change, and you'll need a policy that accurately reflects your individual situation.

If you'll be staying at your parents' home for the holidays and will be driving their car, they can temporarily add you to the family policy for the duration of your stay. This temporary addition ensures you're covered while using their vehicle and can be a convenient option for short-term visits.

Frequently Asked Questions

Knowing the consequences of driving your parents' car without insurance is essential. Below are some common questions to guide you through various scenarios.

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick is a senior content director at MoneyGeek with over five years of experience analyzing the insurance market, conducting original research and creating content that can be personalized for every buyer. He has been quoted on insurance topics in several publications, including CNBC, NBC News and Mashable.

Mark earned a master’s degree in Economics and International Relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his economics and insurance knowledge to bring transparency around financial topics and help others feel confident in their money moves.