If you’re the parent of a new driver, you know how much your rate has gone up since adding your teenager to your policy. Now that they are off to college, new auto insurance questions arise, such as whether you should have them on your policy at all, and if you do, what is the right way to list them?
The last thing you want to do is put your coverage in jeopardy should you or your child have an accident. So, here are a few pointers to help you avoid any problems with future claims.
Should I keep them on my policy?
The answer depends on a few things.
- The garaging location, or where the car is keep
- The owner of the vehicle, or the name on the title
- The student’s registered address
When they should get their own policy
If the student has title to the vehicle, it is kept with them at college, and their registration address is at college, then they should be on their own with auto insurance and not on your policy. If there is an incident, and they are using your insurance, you run the risk of not being covered because the vehicle is kept at school, it is in the student’s name and they don’t use your mailing address. In the eyes of the insurance company, the car belongs to the student and not to you, and they may even think you are trying to commit fraud by listing a driver under your policy who should have their own.
When they should stay on your policy
If the student still keeps your home address as their mailing address and your name is on the title of the vehicle, you should be ok keeping them on your policy, even if they bring the car to school. It’s important to consider these details when keeping your college student on your policy. If there is an accident, you must be able to show that the vehicle belongs to you and that your college student really is still dependent on you, such as having your address be their home address.
There are benefits to both methods. If you take your college student off your policy, you could save a lot of money by removing a higher-risk, young driver. But, when they come home for breaks and vacations, they are not covered, and you will have to make sure you add them back to your policy before they drive your car Some insurance companies frown upon the frequent adding and removing of drivers.
Either way, you should check with your insurance company as the rules may vary.
If you want to run some numbers to find out the best way to handle a college student driver, use the InsuranceWins form to compare quotes both with and without them on your policy. It’s a fast and easy way to get answers, and maybe save a lot of money.