Adding a college student to your family car insurance coverage: issues you should consider

If your children are headed to college, you may want to add them to or keep them on your family's car insurance policy. When it comes to car insurance coverage, college students present both benefits and drawbacks. Adding a college student to your family car insurance coverage presents several issues you should consider.

Although many parents might worry that college students will add extra cost to their car insurance policy, the opposite may be true. If your kids do not own a car of their own, they will only need to be covered by your family’s car insurance policy for the times they are home and driving your car. Some companies offer discounts for parents who have college students who go to schools that are more than 100 or 150 miles away from home. That way, your student will still be covered during breaks from school.

If your college student will be driving a car when he or she is at college, a number of factors can affect the cost of your family auto insurance coverage:

Location

Where your child goes to college has an impact on the policy that will cover him/her when driving. Cities that have a high number of auto insurance claims may result in higher policy costs for your family. If the drivers in your child's college town are known for bad driving habits, your premiums may also go up.

Parking/storage

When it comes to car insurance coverage, college students also face issues of car storage. If your student parks the car in a lot that sees a great deal of theft or damage, your insurance costs may be higher.

Crime & demographics

Insurance companies may also look at crime statistics of the university, the number of claims reported from other students in your child's dorm, or the level of security in college parking lots.

Good grades

College students who get good grades and show a track record of responsibility can often qualify for lower premiums. For most insurance providers, college student drivers with an average grade of B or higher will reduce your family's car insurance coverage costs. In order to get the discount, you should let your agent know about your child's academic record.

Who owns the car?

The ownership of your child's car also has an impact on the insurance you can purchase. Depending on the requirements of your home state and the state in which your child will go to college, you may need to purchase a separate policy in his or her name. In most cases, if your name is on the car title, it will need to be added to your family policy. If your child has a separate policy, however, it can help limit your liability in case of an accident or any claims involving your child.

Sending a child to college is an exciting endeavor and you can make one part of that transition smooth by ensuring that your college-bound child is well covered when it comes to car insurance. Having the support of an experienced professional can help, and Reply! can be that resource for you by connecting you with insurance professionals in your area, today.