Auto Insurance for Foster Carers (How to Save)

Auto insurance for foster carers is, essentially, comparable to auto insurance for anyone else. In a few states where foster parents can get money back, but these states are few and far between. Some good news is that, for the most part, foster parents do not need to obtain any additional form of coverage or pay extra auto insurance rates. Once the foster child reaches driving age, they should be added to the foster parent's policy just like a biological child.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Written by Rachel Bodine
Feature Writer Rachel Bodine

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: Apr 29, 2022

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Things to Remember

  • Adopting a child does not raise your auto insurance rates.
  • Adopting a child also does not automatically decrease your rates.
  • If you add your adopted child to your policy come driving age they’ll be treated the same as a biological child.

Today we’re going to be going into auto insurance for foster carers. We’ll answer every question we can, including whether or not business auto insurance will be necessary for a foster carer. To learn more about this type of coverage, read our article What does business auto insurance cover?

Before you buy auto insurance for foster carers, get he best rates you can by comparing rates from insurers in your area.

We’ve made it simple, just type your ZIP code into our free and helpful tool above to find affordable auto insurance quotes for foster carers in your area.

Fostering and Auto Insurance

There are many benefits to fostering a child, aside from the knowledge that doing so makes the world a better place. While it’s expensive, just like raising a biological child, there are perks to help you do so, including monthly subsidies.

You also can receive a tax credit and in some states, your foster child can even attend college for free. How about insurance benefits? While it’s not auto insurance, it is important to know that foster children are allowed to keep state-funded health insurance until at least the age of 18.

There are several states that offer what amounts to rebates to foster carers, including Arkansas, but these are few and far between. Still, it’s not as if adopting a child raises your rates just because you adopted a child. Thusly, we’d be best off looking at the general state averages for auto insurance.

Average Annual Liability and Full Coverage Auto Insurance Rates by State
StatesAverage Annual
Liability Auto Insurance Rates
Average Annual Full Coverage Auto Insurance Rates
District of Columbia$628.82$1,330.73
New Hampshire$400.56$818.75
New Jersey$869.57$1,382.79
New Mexico$488.03$937.59
New York$804.51$1,360.66
North Carolina$359.42$789.09
North Dakota$298.18$773.30
Rhode Island$759.80$1,303.50
South Carolina$527.09$973.10
South Dakota$300.22$766.91
West Virginia$491.83$1,025.78
National Average$538.73$1,009.38

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Keep in mind that adding a child to your policy will raise your rates, sometimes by as much as 161%. Adding a foster child is no different. Liability insurance is what you’ll almost certainly need. Every state requires property damage liability insurance. Every state, save for Florida, requires bodily injury liability insurance.

If you choose to foster a child, you’ll need to be sure that your various insurance policies also cover your foster children. This means informing your insurance company that you now foster. The company then will include your foster children as members of your family.

So, we talked about liability insurance, but does a foster parent need any special forms of coverage? Let’s find out.

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Do foster carers need business auto insurance?

When you use your automobile as a business, think delivery driving, you need a special form of coverage. So is being a foster parent the same thing as running a business from your automobile? No. To learn more about when you will need this form of coverage read our article When do I need business auto insurance?

All you need is the standard domestic policy. Just to stress again, you must let your insurer know that you foster. You’ll be asked what your occupation is, and you can just say foster carer.

So, all in all, being a foster parent really doesn’t affect your rates all that much. Just be sure to inform your insurer that you plan on or have just become a foster parent. Inquire as to whether or not there are any discounts available, just as you would in any other situation.

First, though, you have to find an auto insurance company for foster carers.

Type your ZIP code into our free and helpful tool below to find affordable auto insurance quotes in your area.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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