Many parents are uncertain about how to handle their college student's auto insurance, especially if the student is studying away from home. Keeping them on the family policy may lead to higher rates, but removing them from the policy leaves them without coverage.
From a parent: Do I leave my college student on my auto policy?
There is no standard answer to this question, but it does depend on your individual situation. Below are a few examples of when it would be best to keep your college student on your own policy.
• Your college student regularly drives a vehicle owned by yourself, while at college.
• They frequently operate your vehicles when coming back home from a college less than 100 miles away, for holidays and breaks.
• They live at home, regularly commuting to college.
Even for college students studying more than 100 miles away from home who are not driving any vehicles at college, removing them from your insurance policy might not be a good idea, especially if they don’t have their own coverage. Taking them off your policy might result in them having a lapse in coverage, which in turn will most likely result in their premium increasing substantially once they decide to acquire coverage once again.
The BIG question: How can I save on my college student's insurance?
Insurance companies often consider drivers between the ages of 16 and 25 as "high-risk" due to their increased likelihood of reckless driving, filing claims, and committing traffic violations. As a result, their insurance premiums may be higher than average.
To help lower your premium, it is essential to know what strategies you can use to get the best deal. Here are a few examples:
• Some colleges and universities have partnerships with specific insurance companies that can provide discounts and competitive prices for insuring your student. Additionally, if your student is studying more than 100 miles away, they may qualify for a distant student discount, which can result in a discount of up to 35% if they are not driving frequently
• If your student leaves their vehicle behind while attending college and it will not be used by anyone else in the household, it might be a good idea to change the coverage to in-storage coverage during their absence. This can further decrease your policy premium. The vehicle will still be covered for events such as vandalism, theft, natural disasters, damage caused by animals, and falling objects
• Many insurance companies offer a "student away from home" discount which can lower your premium because your student is not operating your vehicles frequently, thus becoming a lower risk
• Good grades can also provide benefits when it comes to insurance. Students who maintain a GPA of 3.0 or higher may qualify for a good student discount, which on average grants a 7% discount on their insurance. This can be an added benefit in addition to opening up a bright future and making parents proud.
What are the top car insurance companies that offer the best rates and options for college students?
To determine which company offers the most suitable price and discounts for your specific situation, it is best to consult an insurance agent. They can provide personalized advice and guide you through the process. For example, you can speak with a licensed Luna agent to get a customized evaluation at any time all within Luna's app.