How to Buy Car Insurance for College Students
When it’s time to leave home and go to college, there are plenty of odds and ends to figure out, including car insurance. Should the student stay on her parents’ insurance policy? Or is it better to have her own coverage separate from her parents’ plan? Let’s break it down.
Should You Keep Your Student on Your Car Insurance Policy?
As a parent, you are allowed to keep your child on your policy if your child is a student and considers your home primary residence, as reflected by the address on the student’s driver’s license. But, is it better to have the student remain on your policy or not?
- The college student should remain on the parents’ policy if they are the registered owners.
- If parents gift a car to the student and no longer want to insure it, the title should be put the child on the student’s name.
- A car owned by the student must have coverage in his or her name.
- If the parents stop insuring the student, that child must be listed as an excluded driver.
- When the student no longer lists the parents’ home as primary address on the driver’s license the excluded driver requirement no longer applies.
- Most policies will allow a student that is no longer on the parents’ insurance continue to drive the parents’ car when home on school breaks.
Why Remaining on the Parents’ Policy Can Be the Right Choice
- Generally, auto insurance is expensive for a young person. But if the student helps with costs, the rates might be less pricey if the student is on the parents’ policy.
- Good college grades might earn a student discount on the policy.
- When the student eventually buys a separate policy, rates can be lower because of the continuous coverage.
Why Keeping a Student On the Parents’ Policy Can Be a Disadvantage
As a parent, here are some things to keep in mind:
- When a college student is added to a parents’ policy, the policy rates will probably double. If the student doesn’t help pay for the coverage, parents must be prepared to carry it themselves.
- As a family member on the parents’ policy, the parents take full responsibility for the student’s driving. Although, increasing liability to the policy can help protect their assets.
- Without good liability coverage, if the child receives a ticket or must file an accident claim, it goes onto the parents’ record. They will see their premiums and rates increase.
Student Discounts are Available
There are a number of ways to save money on car insurance for college students. Key discounts include:
- Good student discount
- Distant college student, or resident student, discount
- Discount provided when a school partners with an insurance company
To learn more about young drivers, read Car Insurance for Teens on the EINSURANCE website.
If you are ready to explore your coverage and provider options, we can get you started.