Over 2 million young Americans go to college every year.
As a parent, watching your kid spread their wings and fly is an experience unlike any other. However, along with the pride and joy that comes with seeing your kid grow up, there are also all sorts of questions.
Questions like, what type of car insurance does a college student need? What happens if you remove your child from the auto policy completely? Are there special discounts you could qualify for to make things more affordable?
To help you answer all of your questions about car insurance family plans, we’ve created this short guide. So take a look! By the time you’re done reading this article, you’ll know how to update your policy, the right way.
Getting Specific About Car Insurance Family Plans
When it comes to car insurance family plans, there are a few questions you should ask yourself when you’re child goes off to college. For instance, how far away is the college that they’re attending? Will your child be using a car on a daily or weekly basis?
Lastly, if left to their own devices, would your child be able to fund a car insurance policy that would have the coverages they need? Keeping these questions in mind, you can start to consider whether or not you need to keep your child on your policy or have them begin their insurance journey.
We suggest keeping your child on your car insurance policy for most situations. For instance, let’s say your college student lives at home and is using the vehicle to commute to school.
If you remove them from the policy, you could wind up creating ugly liability situations in the event of a crash. Instead, by keeping them on your policy and updating the car usage, you’ll be able to rest easy, knowing that everything is taken care of.
Shared Family Car Insurance Plans for Commuters
Earlier, we mentioned that it’s a good idea to keep your college student on the policy if they’re using your vehicle to get to school. However, what if you’re dropping your student off at the campus, and they won’t be driving your car at all? Should they still stay on your policy?
The answer varies based on each situation, however, it’s almost always yes. By keeping your college student on the policy, you’ll be giving them the protection they need for weekend visits. After all, don’t you want them to come home and see you from time to time? If they use your vehicle when they’re visiting, and you’ve removed them from the insurance, you could wind up in a world of legal trouble.
Next, by keeping your child on the insurance policy, they’ll have the protection they need while they’re driving vehicles that aren’t yours. Using a friend’s car for errands, or serving as a designated driver, your college student will have the legal and medical coverages they need.
Another benefit is that keeping your college student on the policy helps them maintain a continuous insurance history. Whenever somebody cancels their insurance policy or has any type of gap, it reflects poorly. Young drivers are already subjected to high price insurance premiums because they’re viewed as a higher risk.
When you add a gap of insurance history on top of being young, insurance premiums can become unobtainable. If you want to help your child have reasonable insurance rates when they’re ready to get their policy, help them avoid insurance gaps.
When to Remove Drivers
Are there any situations where you should remove your college student from the auto policy? In most cases, letting your child stay on your policy as long as possible is always the best choice.
However, there are a few exceptions. For instance, it’s possible that your insurance provider might not allow you to keep your college student on the policy. If the vehicle is in your child’s name, your insurance provider might require your child to get there on policy. If your college student can afford their policy, it’s not a bad idea to let them branch out.
Since insurance solutions are always a case-by-case situation, talk to a licensed professional before making any decisions. Another situation where it’s taking your college student off the policy makes sense, would be if they have a bad driving record. Every 52 minutes, someone dies from drunk driving in America.
If your child has multiple tickets and doesn’t seem to be slowing down, removing them from the policy could be a wise move. However, you’ll have to take things one step further by also preventing your child from having access to your vehicles.
If you can prevent vehicle access, then the tough love approach can be effective in several ways. You’ll be teaching your college student a sense of responsibility, and you’ll also be able to lower your insurance premiums.
Get a Policy Review
To make sure you have the coverages you need as you experience life changes, it’s always good to get a policy review. By talking to a licensed insurance representative, you can gain insights as to where your policy could use adjusting. Perhaps your deductibles are too high, or you qualify for a discount you didn’t know about.
If you don’t conduct frequent policy reviews, you’ll have no way of knowing about the opportunities and discounts you could be eligible for. When you reach out for a policy review, be sure to secure a copy of your current auto coverages. Depending on who your provider is, it should be easy to find your insurance coverages online, along with pricing.
Be sure to discuss all of your life changes, in addition to your kid going off to college. For instance, have you changed from renter to homeowner? Did you add any safety features to your vehicle, or have you taken a defensive driving course? Homeowners can qualify for special discounts, and driving classes are usually helpful as well!
You can also look into adjusting the way you pay to help lower your premiums. A lot of insurance providers are happy to provide a sizable discount if you pay the policy in full (for every 6 months and in some cases for the year). Lastly, bundling homeowners insurance with auto insurance may also help lower your rates, even with a college student on the policy.
Updating Family Auto Insurance
As the proud parent of a college student, you’re smart to be thinking about insurance coverages. After all, college is all about growing. By purchasing the right car insurance family plans, you can help your loved ones have a bright future. We hope that your family never experiences a car accident.
However, we’re glad you’re taking the time to make sure you have the right type of policy. Remember, you don’t have to do everything alone. Reach out to a trusted insurance representative today, and let us review your policy.