Can My Child Be on My Insurance If She Lives on Her Own?

Under the Obama administration, Congress has made major changes to health insurance regulations. These changes give greater protection to children and young adults. Under these new regulations, children and young adults don't have to worry about losing insurance coverage simply because they don't reside at home.

Insurance Type

• Whether you can add a child who doesn't live with you to your insurance depends on the type of insurance you have. For example, you can add a child to your car insurance as a secondary driver even if she doesn't live with you and even if she is an adult. With health insurance, you can add children to your policy only until they reach a designated age.

Health Insurance

• Because of insurance reforms initiated by the Obama administration, as of 2011 children can remain on their parents' health insurance until their 26th birthday.

Cost

• In some instances, putting a child who doesn't live with you on your insurance may raise your premiums, and the insurance company may charge fees for modifying your policy. For example, your car insurance company may charge more to place multiple drivers on the policy, and the company will use the age of your child in part to determine the rate you get.

Significance

• Letting parents and caregivers place a children on their insurance policies provides a safety net to children who aren't at home and otherwise could not afford coverage. The best example of this is college students, who often take on debt for education and who may not have enough savings or resources to pay insurance premiums on their own. Adding a child also can be cheaper for a family than it would be for the child to purchase her own coverage.

Considerations

• Even though it is possible to add a child to your insurance if he doesn't live at home, you take on additional liability, since the child may prompt a claim that may increase your rates or reduce the amount of coverage left available to you. An alternative to having your child on your insurance is to pay the premiums for him to have his own policy.