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?

Free Insurance Quote Comparison

 Secured with SHA-256 Encryption

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...

Full Bio →

Written by

UPDATED: Mar 23, 2019

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

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.


IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and FreeAdvice.com AS IS. It has not necessarily been reviewed by the management staff of FreeAdvice.com nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although FreeAdvice.com has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on AttorneyPages.com to represent you.

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

 Secured with SHA-256 Encryption