Buying your first car is exciting, but paying those insurance premiums? Less so.

If you’re the proud owner of a new (or new-to-you) car, you might be wondering if you can stay on your parents’ or guardians’ auto insurance to keep costs low.

Here’s when you can and can’t stay on your parent’s auto insurance.

Can I remain on my parents’ auto insurance?

You can remain on your parent or guardian’s auto insurance if they are listed as the co-owner of whatever car you drive.

In this case, you’ll be listed as a driver on your parents’ car insurance policy. Therefore, you’ll be fully covered as a driver, but you won’t be able to change your policy and coverage without your parent or guardian’s permission.

Do I have to live with my parents to be on their insurance?

Auto insurance companies base policies on households, which means you’ll need to share a permanent address with your parents to share a policy.

One exception is if you are taking your parent or guardian’s vehicle to college. In this case, you can remain on your parents’ policy as long as your insurance company knows about your new on-campus address.

Suppose you move out on your own and have a new permanent address. In that case, you’ll also need to purchase a separate car insurance policy so the insurer can properly assess the vehicle risk in your new location.

Is it cheaper to stay on my parents’ car insurance?

Staying on your parents’ car insurance is often an excellent way to save on your premiums. In addition, you can qualify for multi-car discounts and may benefit from their good driving records.

If you have to purchase your own car insurance policy, there are still ways to save on your car insurance. First, check for safe driver discounts with your insurance company and compare quotes before committing to a policy to get the best rates.

When do I have to buy my own car insurance policy?

If you are the sole owner listed on the title of your car, you’ll have to buy your own car insurance policy.

Most insurance companies require the name on the policy to match the owner’s name on the title of the insured vehicle. So with the same name across all your vehicle documents, your insurer and your state can make sure you meet all the legal requirements for insurance and registration.

Bottom Line: You Can Remain on Your Parents’ Auto Insurance Policy Under Certain Situations

You’ll have to buy your own car insurance policy if you are the sole registered owner of a vehicle or if you permanently move out of your parent or guardian’s home. However, you can stay on your parents’ auto insurance policy if you’re attending college or sharing car ownership while living at home.

When you purchase your policy, you can still save on insurance premiums by comparing quotes and looking for discounts.