In most states, you can stay on your parents insurance until you reach the age of 25, but this could be as low as 21 in some cases. In order to qualify, you must reside at the same address as your parents or attend a full time educational facility in another state. According to research, your risk goes down by the age of 25, making it more affordable for you to have your own coverage. Many young people have already moved out on their own long before they turn 25, and that means they had to get their own policy sooner.

If you are a student in college, you can be covered on your parents' insurance policy even if you do not live at home. If you graduate or quit college, you will either have to return to your parents home or secure your own insurance coverage. Also, if you maintain a grade average above 3.0, you will be eligible for a discount on your insurance rates and that can save money on the whole policy.

If you are not in school and do not live in your parents' home, you should get your own insurance policy. You may be able to get away with staying on their insurance for a while, but if you are involved in an accident and there is a conflict between your resident address and the address of the insurance, you may find out that the insurance company considers it a breach of contract and denies the claim. If you live and park your car at a different address, you should have insurance that lists that location.