Can I buy a non owner auto policy instead of staying on my parents' car insurance?

If you live with your parent or their address is your permanent address, no, this is not a good idea. If you have a home of your own, is a good option so long as you don't drive their cars regularly.

When is getting a non owner policy a better idea than staying staying on my parents policy?

Seems like your parents should be able to save a buck by kicking you off their car insurance and asking you to get a non owner insurance policy. Not so fast, though. You'll only want to consider non owner insurance instead of your parents' policy if all of these are true:

• You've moved out of your parents' house and have your own permanent address. A dorm room where you go back to their house over the summer doesn't count.  
• You don't drive their car regularly.
• You don't regularly drive another specific car, like a housemate's car. In that case, you need to be listed on the housemate's policy instead.
• You and your parents understand that non owner auto policies only include liability coverage for you, not coverage for the car itself.
• Your parents understand that any claims will hit their insurance, since insurance follows the car first. Non owner policies kick in if the limits on the car's policy are too low to cover the accident and the non ower policy has higher limits.

I live with my parents. Why won't a non owner policy cover me if I drive their car?

Personal car insurance policies are intended to cover you in two situations. First, when you drive a car listed on the policy. Simple enough. Second, when you occasionally drive a borrowed or rented car. Not so simple, because "occasional" has a specific insurance definition.  

"Occasional use" has two pieces to it. First, you need to be using the car for a fairly short period of time. How long depends on the insurer, but a general rule of thumb is less than 28 days. Second, if you have regular access to a vehicle (like, you live the same household as your parents' and could in theory drive their car anytime), your use is not considered occasional.

Why? Well, most insurance policies don't include any kind of monitoring for who is driving a car when. Since there's no good way to figure out how often a licensed driver in the household is using the car, insurance companies just charge for the drivers. And they do deny claims for unlisted drivers. (If you truly never drive your parents' car, you can be listed then excluded from the policy. Your parents' won't get charged for you, but you also have no coverage at all if you get in an accident in their car, even in an emergency situation).  

Non owner policies don't have any vehicles listed on them, so they won't cover anything more than occasional use. And, as we mentioned above, driving your parents' car doesn't count as occasional if you live with them.

You need to be listed as a driver on your parents' policy to ensure you have coverage.    

If I don't live with my parents, can I stay on their car insurance policy?

If you've moved out permanently, no. The only exception is if you still regularly drive their car, like to get to school or work. In that case you will want to remain listed on their policy.

Car insurance isn't like health insurance, where you can stay on until you're 26. Getting your own policy is based on having your own car or your own residence, not your age. That also means if you move back in later in life, you and your parents can be on the same car insurance policy at any age.

When can my parents kick me off their car insurance policy?

This one's easy! When you've permanently moved out of their house and you don't regularly drive their car anymore.

If you'd like to read more about non owned car insurance, check out our guide to everything you need to know about non owner auto insurance. When the time is right, here's how you can get off your parent's policy.