Living at Home

• You can usually insure your child on your auto insurance policy as long as she lives with you and drives any vehicles you own. If a vehicle is registered in your name, the insurance policy must be in your name. List your child's name on the policy to ensure she is covered. It's important to list any licensed drivers living in your household, whether they will be driving a vehicle on a regular basis or only occasionally. Adding a teen driver to your policy will increase the premiums you pay.
  
  

Primary Driver

• List yourself as the primary driver, and add your child as an additional driver. That way, your vehicle will be covered if an accident occurs while your child is driving. If you list your teenager as a primary driver on a vehicle, your insurance rates could double. Teen drivers are considered inexperienced, high-risk drivers. If your family vehicle is a newer model, think about buying an older vehicle for your teen to drive. This can save you money, as an older vehicle costs less to insure. Your insurance company may also give you a discount for adding a second vehicle to your policy.
  
  

Going to College

• Most insurers allow you to continue insurance coverage when your child goes away to college. If she doesn't take a vehicle to school with her, your insurance rates could actually go down. The insurance company will assume that your child is only driving the car occasionally, when she is home from school on breaks. If your child takes a vehicle with her when she leaves for college, the cost of your insurance premiums will depend on where she is attending school. Your premiums will be much higher if she goes to a college located in a large, urban area. Check with your insurance company to make sure you will have enough coverage if your child attends college out of state. Minimum insurance requirements vary from state to state; what is considered adequate coverage in your state might not be enough in another area of the country.
  
  

Insurance Rates

• An insurance company considers the age, gender and driving record of each individual listed on a family insurance policy when determining premium rates. Adding drivers younger than age 25 to your policy can significantly increase your premiums, since younger drivers are regarded as a higher risk. Because an insurer must compensate for the driver who poses the most risk, you will pay more to add a young male to your auto insurance policy. If an adult child living in your household is age 25 or older, the rates will be lower. Regardless of age, a clean driving record helps keep auto insurance rates down.