I insure both my & my daughter's vehicles. Would I get penalized if I dropped my daughter's vehicle off my policy since she wan s to get her own insurance?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Mar 23, 2019

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Insurance Question from Lawton, OK

Asked on 03/23/2019

I insure both my & my daughter's vehicles. Would I get penalized if I dropped my daughter's vehicle off my policy since she wan s to get her own insurance? Full Coverage Insurance

Answer given on March 31, 2019

If your daughter wants to get her own car insurance, make sure the car is registered in her name. If not, she needs to change the registration to her own name.

You will not be “penalized” for removing her car from your auto insurance, but if you only have one car remaining on your automobile policy, you will lose the multi car discount on the policy, which will cause the cost of insurance on your car to go up. Usually the discount is between 10 and 20 per cent, so the cost of your insurance would go up. However, you will also remove your daughter from your policy, and depending upon her age and driving record, the cost of insurance could go down.

It is always better to have your adult children have their own automobile insurance, since if they are on your policy, any accident can affect you financially if it is a major accident and the costs exceed your insurance policy limits.  In addition, they may allow a friend to use their car and you are unaware of the driver and/or their driving experience which can again affect you financially.

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