If your child has grown up and gone off to college, removing him or her from your auto insurance policy might seem like a smart financial move, but it can backfire. Keeping your college-age student covered can provide valuable financial protection and peace of mind. You might have to make some adjustments to your policy, and you might even qualify for lower premiums.
Protection While Your Child Is Attending School
If your child lives at home and commutes to college, he or she should remain on your car insurance policy. You should also maintain continuous coverage if your child attends school nearby and frequently comes home to visit.
Having auto insurance can be beneficial even if your child lives at college and doesn’t bring a car to campus. Your student might drive a friend’s vehicle while away at school. If there is an accident and your child is at fault, your auto insurance policy can provide secondary coverage, including liability protection.
Coverage While Your Child Is at Home
Even if your child is living at college and his or her car is sitting in a garage at your house, it can make sense to keep the student on your auto insurance policy. When a holiday break rolls around or the semester comes to an end, your child will most likely return home and want to drive around visiting friends or working a part-time job.
Your child might decide to make an impromptu trip home during the semester, or he or she might have to return home due to a family emergency. If you keep your child on your policy, you won’t have to contact your insurance company or agent to make updates.
Benefits of Continuous Coverage
Your child will eventually move out and need to get an individual auto insurance policy. Insurers consider several factors, including a history of history of continuous coverage, when setting premiums. The years when your child is covered under your car insurance policy can help when he or she needs to take out an individual policy.
Changes You Might Have to Make to Your Auto Insurance
Contact your insurance company or agent and explain that your child is attending college, or will be soon, and ask if you need to update your policy. If your child takes a vehicle to college, you’ll have to provide the address where the car is stored.
Ways to Save Money
You might be eligible for lower rates if your child attends college far from home or gets good grades. Talk to your agent, explain your family’s circumstances, and ask about any discounts that might reduce your premiums.
