Car insurance for college students
Going to college or university
This is possibly the first time your children will be moving out of the home. So, as well as packing clothes and finding boxes for the computers, televisions and music systems, this is the time to review the car insurance situation. There are three possible situations: your young adult may be driving away one of the family vehicles, or have a vehicle registered in his or her own name, or may be going without any wheels. Let’s look at these possibilities in more detail.
Colleges, universities and ZIP codes
Outside California, the ZIP code is one of the most important factors in setting the premium. So, if you live in a “bad” neighborhood, relocating to a good college or university campus may improve the address where the vehicle will “live”. The result may be an immediate reduction in the premium. But the reverse can just as easily be true because most colleges and universities are based in cities. Your young adult may be moving where the accident and theft rates are higher. Fate on premium rises or falls will all come down to the statistics. Either way, you have to ensure the insurers are notified in advance of the change of address. Remember, if your child is going out of state, read the existing policy to see if it covers this possibility. If not, it may require a separate policy with an insurer based in the new state of residence.
The good news would be if your youngster will not be driving while away from home. Removing the named driver from the family policy during term time will be an automatic reduction in the premium.
Discounts
The majority of insurers specifically target college and university drivers. The two biggest reductions come on driving lessons and the GPA. Insurers want to encourage younger drivers to be more safe on the roads. There are reductions if they go through an approved defensive driving course. Equally important are the reductions if they maintain a B average or better grades. Car insurance companies assume that better students are more responsible drivers.
If you check everything through with the insurers before they go, it will work out well. If you do not get everything set up properly and your children are driving uninsured in the new location, this is very bad news. An accident blights their records and will result in increased premium rates for years.