Parents: What you should do with a new college student on your car insurance
Parents who choose to keep their child on their car insurance should notify their insurance company as soon as possible. You want to verify that your home is still listed as their primary address, as well as confirm that your student will be covered.
Having a student on your policy could affect your rate, usually based on their driving record and the ZIP code where the university is located. Fortunately, many car insurance companies offer discounts for college students, in addition to policy changes you can make to lower your cost:
- Good student discount: Many insurers offer discounts for young drivers on a policy who are also good students. In most states, you'll get a discount on your Safe House Insurance auto policy if your child is a full-time student, under the age of 23, and has a B average or better.*
- Distant college student discount: Some insurers also offer car insurance discounts for students who go away from home for college and don’t have a car at school. Depending on the state, you'll get a discount for any full-time college students on your Safe House Insurance auto policy if they're 22 or younger and enrolled at an educational institution over 100 miles from home.*
- Double-check your coverage needs: One easy way to save with a college student on your auto insurance policy is to drop collision coverage on their vehicle if it’s of minimal value and not being financed. Just keep in mind that you’ll have to pay to repair or replace the car out of pocket if it’s damaged or totaled.
*To qualify for the good student and distant college student discounts, you cannot be the primary named insured (PNI) on your policy or the spouse of the PNI. Additionally, students must be enrolled at an educational institution located where they reside in order to qualify for the distant college student discount. You may also be asked to provide proof that your college student meets the above eligibility requirements.
Pro tips for college students with cars insured by their parents
Where you should put your car while going to college
If you’re going to have your car on campus, you should always follow your university’s parking rules. Many schools have limited space available for parking, and some even prohibit freshman from having cars on campus. Parking illegally or without a permit can lead to costly fines, including towing fees. You could also land in hot water with your school’s judicial review board.
If you’re living in off-campus housing, try to keep your car off the street. Keeping it in a driveway or an apartment complex parking lot could lower the chances of it being hit.
Make sure you’re still covered if you’re going out of state
Most states allow out-of-state college students to stay on their parents’ car insurance as long as your primary address is still their residence. However, there are some states that require you to get your own policy instead. Your auto insurer will ask about the ZIP code where you’ll primarily keep your vehicle and can tell you if you’ll need a separate policy before leaving for college.
If you’re living off-campus and maintaining a regular residence year-round separate from your parents, you’ll need your own policy, regardless of the state you're in and whether you live two miles from them or 2,000.
Questions? Just give us a call at 915-503-1207 ; we'll make sure you're compliant.
If you’re living off-campus and maintaining a regular residence year-round separate from your parents, you’ll need your own policy, regardless of the state you're in and whether you live two miles from them or 2,000.
Questions? Just give us a call at 915-503-1207; we'll make sure you're compliant.
How auto insurance coverages work with college students
Here are a few scenarios that show how coverages apply when sharing a policy:
|
Damages car |
Hits someone else |
| Student driving parent’s car |
Covered, minus your policy’s deductible, if comprehensive and collision included |
Typically covered by bodily injury & property damage liability up to your policy’s limits |
| Parent driving student’s car |
Covered, minus any deductible, if comprehensive and collision included |
Typically covered by bodily injury & property damage liability up to your policy’s limits |