Whenever you’re insuring a young adult, it can get costly. These high-risk drivers can drive up the cost of coverage and when they go off to college, you shouldn’t be paying for a car that’s not even being used. So, what should you do when your kid goes off to college? In regards to your insurance policy, you need to think about two things. The usage of the car and your child’s residency.
Why you should change your policy:
If the car is staying home and your child is living on campus without a car, you are most likely going to save money by taking the student off the policy. Although this depends on your child’s age and driving record, it could save you around $1,000 to $2,500 annually to take them off. Be careful though, a lot of insurance providers don’t allow you to exclude a licensed driver who is already on your policy for a limited amount of time. Your child should also be aware to not drive their friends car if they aren’t insured.
If you think this is the right step for you call your local insurance agent today to review your coverage carefully.
Why you should keep your policy:
If your child is driving regularly or commuting to school, then they should definitely stay on your policy. Not only would they have the convenience of driving whenever they want to but there are other benefits like:
- Coverage in case they get hit by a car on foot, bike, or as a passenger
- Most insurance companies offer discounts for collegiate students
- Keep building insurance coverage history
Keeping your child on your auto insurance ensures that they are protected from any and all driving circumstances. If they need to drive home, drive a friend’s car, drive for an emergency, or if they get hit by a car, your child will be protected. Keeping your student on your insurance policy is also great for them in the future and will save them a lot of money on their insurance.
There are also policies called Named-non-owner policies where if your child doesn’t own/bring a car on campus then they can still get auto insurance. This coverage basically protects the individual rather than just the car and offers everything a regular auto insurance does. This plan is popular in our office with people going off to college – especially in the city.
College students are able to get a variety of discounts, which means lots of savings. For most companies this includes the good student discount (typically a “B” average) and good driver discount (no accidents in 5 years). For certain companies they also offer a fraternity, sorority, and honor society discounts. Even when your child graduates, they could receive an alumni discount! There’s a lot of ways to save, you just need to find the right policy for you and your college student. Regardless of what you choose it’s always a good idea to check up on your insurance coverage to make sure that everything you want protected, is. Call or click to see what we can offer you!
Sources:
Fitzpatrick, M. (2022, May 20). Should I take my college student off My Auto Insurance Policy? ValuePenguin.