car ris updated February 2, 2025
When your child heads off to college, it marks a significant milestone in both their life and yours. As a parent, you may start to rethink various aspects of their financial independence—especially when it comes to car insurance. You might wonder if removing your child from your policy will save you money, but doing so could lead to potential coverage gaps. Instead, keeping your college-age student on your auto insurance policy could provide valuable financial protection, and peace of mind, and possibly even save you money in the long run.
At The Light Realty, we understand that life changes and your home and insurance needs evolve. If you live in North Carolina or South Carolina, and your child is heading to college, it’s important to understand how this transition can affect your car insurance. Let’s explore the adjustments you may need to make to your policy and how you can potentially lower your premiums.
If your child is living at home and commuting to college, keeping them on your car insurance policy makes sense. But even if your student attends school out of town and doesn’t bring their car, it’s still a good idea to keep them covered.
Student Without a Car: If your child doesn’t have a car while at college, but they occasionally drive a friend’s vehicle, your insurance policy can offer secondary coverage in the event of an accident. This includes liability protection for damage they might cause while driving another car.
Student With a Car: If your child does bring a car to college, the car needs to be covered under the insurance policy. Inform your insurer about the car’s new location. Some policies offer coverage regardless of the car’s location, but you might need to update your policy with the school’s address to make sure everything is covered properly.
Even if your child doesn’t plan to bring a car to school, keeping your child on your auto policy provides financial security should anything unexpected occur. It’s a convenient and cost-effective option.
Your college student might not be at home year-round, but there will be times when they return for holidays, weekends, or emergencies. Having your child on your insurance can ensure there’s no lapse in coverage while they’re back at home, especially when they use their car to visit friends or run errands.
Car Sitting Idle: If your child’s car is parked at home while they’re away, it's still essential to keep it on your policy. This ensures that if something happens to the car while they’re home—whether they’re involved in an accident or the vehicle is damaged—you're covered without needing to adjust your policy each time your child returns home.
Unexpected Visits: You also don’t have to worry about updating your policy if your child needs to come home unexpectedly for a family emergency or a quick visit. Keeping them on your policy eliminates any last-minute hassle.
When it’s time for your child to move out and get their auto insurance policy, the history of continuous coverage matters. Insurers tend to offer better rates to drivers who have had a consistent record of car insurance.
By keeping your child on your policy while they’re in college, you help them build this important history. This could help them get a lower premium when they eventually switch to their policy, as many insurers reward drivers with a clean, uninterrupted insurance record.
Before your child heads off to school, take the time to contact your insurance company or agent. Here’s what you might need to discuss:
Change of Address: If your child takes a vehicle to school, you’ll need to update your insurer with the address of the school or where the vehicle will be stored.
Coverage Needs: Discuss with your agent whether any changes need to be made to the coverage levels. Depending on your child’s driving habits or school location, you might want to adjust your policy to better suit their needs.
Temporary Coverage for College Students: Some insurers offer specific policies or discounts for students attending college full-time, particularly if they live more than 100 miles away from home.
Sending a child off to college can be expensive, so who doesn’t want to save some money where possible? Here are a few ways you could lower your premiums:
Good Student Discounts: Many insurance companies offer good student discounts if your child maintains a certain GPA. If your child is a full-time student with excellent grades, let your insurer know—you may qualify for this type of discount.
Location-Based Discounts: If your child attends college far from home, some insurers offer discounts because students tend to drive less while away at school, which lowers their risk.
Bundling Policies: If you have other types of insurance, such as home or renters insurance, bundling your policies with the same insurer could result in additional savings.
Driving Safety Courses: Some insurance companies offer discounts to young drivers who complete defensive driving courses. Encourage your child to take one if it's available.
While it might seem like a simple financial decision to remove your child from your car insurance policy when they go to college, maintaining continuous coverage offers financial protection, peace of mind, and potential savings. From coverage for accidents involving a friend’s car to discounts for good grades or driving less, there are plenty of benefits to keeping your college-age child on your auto policy.
If you're in North Carolina or South Carolina, and have questions about adjusting your policy or need more information about insurance coverage, reach out to The Light Realty. We’re here to guide you through changes in your life, including providing expert advice on homeownership, real estate, and the ins and outs of insurance for your home and vehicle.
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