subject: Qualifying for a Family Auto Insurance Policy [print this page] There are many benefits of purchasing an auto insurance policy that covers the entire family as drivers and all of the vehicles in the household. There is generally a significant savings associated with having a family policy, all of the drivers can share vehicles and have coverage, and the billing of a single policy is much easier to manage than having multiple policies.
It is important for these policies to be evaluated to ensure that the family qualifies to be on a single policy. Requirements will vary between insurance companies and not all insurance companies follow the same guidelines. Common restrictions would be the garaging addresses of the vehicles and the insurable interest in the vehicles themselves.
Many carriers in California require that the named insured or spouse be the registered owner of all vehicles on the policy. This poses an issue as the children in the home mature and often time adult children prefer to finance vehicles exclusively in their own name in order to build a good credit history.
Another common issue is when the adult children move out of the home or go away to college. Many parents prefer to pay for their children's insurance coverage and request to remain on a single policy. Some companies will allow for children away at college to remain on the family policy. Others will require that they purchase their own policy.
For consumers that have a family policy covering their adult children's vehicles it is important to review the garaging addresses of the vehicle and the insurable interest with the insurance company to ensure eligibility for the program.
Qualifying for a Family Auto Insurance Policy
By: Paul Woodward
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