Expert: Bennie719 - 10/22/2007

Question
My son is 18 and on our auto insurance policy in New Jersey. He wants to move out of our house.  Does he need his own policy or can he remain on ours?  He attends college full time.

Answer
Hi Robin,
As long as the ownership remains in your name, he can remain on your policy.  Simply notify your insurance company of the new garaging address for the car and they will re-rate his rate for that locale.  You will also lose the multiple car discount on his car because it is garaged at a different address.
From a legal perspective, I recommend that you place him on his own policy and reregister the car into his name.
Now that he is age 18, you are no longer responsible for his actions as a driver (but you still remain liable as the owner of the car) for him or anyone that he allowed to drive it.
While he was at home, you had at least some control over his use of the car and him possibly allowing friends to drive.
The freedom of being away at college is a whole new world.
You don't want to remain the owner and be responsible for the actions of some unknown 'new' friend that he may allow to borrow the car.
The final price of the insurance will be the same either way, so put him on his own policy and you can sleep better at night.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area 10-22-07 2:28 PM PST