When your child heads off to a college far from home, you have the opportunity to adjust your auto insurance coverage and potentially save some money. The shift to a university over 100 miles away often means they won’t be driving the family car as frequently, prompting a reevaluation of your policy.
Typically, young drivers between 16 and 25 are perceived as high-risk individuals by insurance companies, resulting in higher insurance costs. Therefore, when your young driver goes to a college located far away and won’t be using your car for an extended period, it’s a good time to contact your insurance agent to discuss potential adjustments to your policy for more cost-effective coverage.
Removing Your College-Aged Child from Your Policy
Many auto insurance providers allow you to remove a child who has gone to college, provided the school is more than 100 miles away. Insurance companies believe that if the school is less than 100 miles away, there’s a higher likelihood of your child using your car regularly.
Student Away Discount
If you prefer not to remove your child from your policy entirely, you may be eligible for a student away discount if your college student attends a university located over 100 miles from your home. This discount, typically ranging from 15% to 30% off select coverages, acknowledges the reduced risk associated with a student away from home.
Designating Your Child as an Occasional Driver
If your child remains on your policy, you can explore the option of classifying them as an occasional driver. This can be beneficial if your child attends a college in the same state but plans to reside on campus. The definition of an occasional driver may vary, but it generally refers to someone who drives less than 25% of the car’s annual mileage.
Good Student Discount
Your college student’s good grades could also lead to lower auto insurance costs. Many insurance carriers offer a discount for students up to age 25 who meet specific academic criteria, typically a B average or higher. This discount can range from 5% to 25% depending on the insurer.
Remember, each insurance company has its own policies for students. Therefore, it’s essential to communicate with your insurance agent to determine your eligibility for discounts and strategies to secure the most affordable auto insurance rates. Additionally, consider having your agent compare quotes from other insurers to potentially find better rates.
Keep in mind that if you make changes to your policy while your child is away at college, you’ll need to reassess your coverage when they return home for extended periods, such as summer breaks.
Lastly, it’s important to remember that during your child’s visits home from college, you may need to adjust your policy by adding them back as a driver, upgrading them to a primary driver on a vehicle, or making other necessary modifications to ensure proper coverage.
If you have any inquiries or wish to make adjustments to your policy, please contact us. For more information on insurance options for college students, feel free to explore additional posts related to this topic.
