Do I need to be on my parents' insurance if I want to lease a car?

I'm 18 and I just got my driver's license. I want to lease a new car under my own name, but my parents say that I need to be listed under their insurance policy. Is that true?

Apr 26, 2021
Answer provided by
Shannon Martin
Answered at Apr 26, 2021
“Congratulations on getting your license! Since you are 18 years old, you can legally get your own leased vehicle and insurance policy. However, it may save both you and your parents a lot of money if you are listed on an insurance policy with them for a few years.
When leasing a car, the leasing company requires the driver to carry higher liability insurance limits—usually $100,000 per person and $300,000 per occurrence—with matching uninsured/underinsured motorist coverage. They typically have a cap on how high a collision coverage and comprehensive coverage deductible you can carry; this usually is around $500.
Since you are a new and inexperienced driver, these requirements may be costly and possibly beyond your financial means at this time. If you are listed as a driver on your parents’ policy, their good driving history, length of driving experience, and insurance history will help lower the cost of the car insurance significantly! “
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