Question
Should I get my own insurance or stay on my parents' AAA policy?
I am 27 and I live with my parents. We have AAA full coverage, as well as an umbrella policy. It's very expensive for me even though I am a safe driver. I have asked my mom about getting my own car insurance coverage, but she's afraid if I do that she could be sued if I were to get in an at fault accident and they try to sue beyond the insurance coverage. Please help me clear this up! Is this something that could potentially happen?
Answer
Beth joined The Zebra in 2022 as an Associate Content Strategist. A licensed insurance agent, she specializes in creating clear, accessible content t…
Credentials
- Licensed Insurance Agent — Property and Casualty
- Associate in Insurance (AINS)
- Professional Risk Consultant (PRC)
- Associate in Insurance Services (AIS)
If your mom has an umbrella policy through AAA, and you live in her home, she likely has to list you as a driver on her full coverage policy. That’s a common requirement for umbrella coverage. Insurers want to make sure all household drivers are accounted for.
Your presence on the policy might also help her qualify for a multi-vehicle discount, so removing you could actually raise her rates. That said, it’s hard to say without all the household details.
It’s best to have your mom check with AAA directly. They can explain what’s required under her policy and whether there’s any flexibility.
Aside from umbrella insurance, most companies require everyone in a household who might drive each other’s cars to be listed on each other’s policies. It’s all about making sure vehicles are properly covered.
There are also real benefits to staying on your parents’ policy. Umbrella insurance can be a financial lifesaver if you’re ever in an at-fault accident that exceeds your standard liability limits. And your mom’s right — if there’s ever a lawsuit or a claim not fully covered by auto or home insurance, the umbrella policy can help with additional costs.
When you move out, that’s a great time to shop for your own policy. AAA is generally well-rated, especially for claims satisfaction, according to J.D. Power, and its membership perks are a nice bonus. But comparing rates is always smart, and you’ll likely see lower rates as you get older, especially around age 30.
Hope this helps! If you have any other questions, feel free to reach out.
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