Details. Details. Details…
They can be annoying in life, but they are VERY important in insurance. Who is an insured is defined within all policies. Most policies define an insured to include the named insured and “resident relatives.” This eliminates the need to add all of your children, aunts, parents, etc. But it also excludes coverage for children when they move out and establish another residence (typically, this is not while they are simply students away at school).
If your son or daughter moves out and takes one of your cars with them, you are still covered, but they have NO protection. There is no coverage for their medical bills and no coverage for their uninsured or underinsured motorist protection. What should you do? Put the car and the insurance in their name. What if they move out and don’t take a car? They should buy coverage called “Non-owned” coverage to protect them while riding in taxis, Ubers, etc.
What if they move out? Renters insurance provides them coverage for their personal liability exposure, protection for their personal belongings, and coverage for them to live someplace else if their apartment is damaged by a covered loss.