So your grown kids don’t like the real world that much and are thinking about moving back in! Not only that, but they are still using your car!! What’s wrong with this picture?
Sociologists have coined a phrase to replace the term “empty nesters” with the term “open nesters”. This is for those semi-independent kids who leave the nest then come back and then leave and then come back – like a boomerang. And the big question is, “Are these grown kids covered under my car insurance policy?”
Well, it depends! I’m going to tell you what I think based on industry-standard wording on most auto policies! (Remember, yours may read differently)
While those kids are living in your home, they are going to usually have very broad coverage under your personal auto policy. That’s when they’re driving your autos or in fact when they are driving anybody else’s autos. That’s good news!
The bad news is when they are not living in your home and have established residence elsewhere (and that’s not always easy to determine), they are only covered under your auto policy when they are driving one of your cars that are shown on your policy. What these grown kids have lost is any coverage under your policy while driving someone else’s vehicle. At that point, they are dependent on coverage on whoever owns the car they are borrowing (IF ANY).
Solution:
When your kids establish residency away from you, be sure that you or they buy a personal auto policy in their own name! Hey, it doesn’t even matter who pays for the insurance, you or them, just do it. And by the way, don’t let them buy minimum limits to save money….I’ll discuss that in a later post. When they have their own policy, they have the same broad coverage as they did when they were living with you.
If I can help you in any way of if you have a question, contact me by email and I’ll go into greater detail. Good luck and one last suggestion……Lock the door!!