Yes, you can get your own car insurance policy while living with your parents, but whether you should depends on a few factors.

Reasons You Might Want to Stay On Your Parents’ Policy

Cheaper as a Household

If the car is owned by your parents, they have the insurable interest in the vehicle. Plus, it’s usually cheaper to be listed as a driver on their policy rather than buying your own. Most insurers price policies based on risk per household, so bundling everyone under one plan can lead to discounts. They will also specifically ask if there are any other drivers living in your household. You have to tell the truth.

Inherit Your Parents’ Discounts

If your parents own their home, their auto/home or homeowner’s discount would extend to you. This applies to other discounts. Many insurance companies create an average score based on all the drivers in the household, so having older safer drivers factoring into your rating typically helps your price.

You’ll likely need to list them too

If you do get your own policy, insurers will often require you to list your parents as potential drivers, since you live with them. In some cases, they’ll need to be excluded from your policy in writing if they’re not intended to drive your car.

You may also need to be listed or excluded on their policy. Check with your company on their specific rules in these scenarios, but make sure you disclose every rated driver in the household. Omitting key information on your auto policy can be considered grounds for denial of a claim because you misrepresented the risk to your insurance company.