Auto Insurance for Out of State College Students

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Important facts to know...

  • College students who are studying out of state shouldn’t be removed from their parents’ auto policies
  • Don’t change the rating when your student takes a car to school when you aren’t changing the registration
  • If your student is going to school without a car, you may be able to classify them as a Student Away at School
  • Students away at school will have coverage if they borrow a car or come home and drive a household vehicle
  • Add a Good Student Discount to your policy if your student qualifies for even more savings

Some parents look forward to their children going off to college. Others dread the day where they’ll have to help their teen pack up so that they can pursue their studies in another state far away from home.

No matter how important college is, it is hard for some parents to cope with the fact that their little one is really becoming an adult.

When your student is accepted to an out-of-state college, a lot of things in life will change. One major change you might not initially think about is your auto insurance.

If you’re currently insuring your child and you aren’t aware of how the policy will change, you need to start planning. Let’s discuss how auto insurers handle out-of-state college students.

If you’d like to check beforehand on the best auto insurance rates for child going off to college, enter your ZIP code above!

When do you add your teen to your policy?

You can’t go very long with a licensed teen in your house before you have to add them to your insurance.

You’re not alone if you’re resistant to the idea of your adolescent driving your cars, but over time you’re going to have to accept the fact that your baby girl or boy is training to become an adult.

Part of training to enter adulthood is learning how to be a safe driver. When your teen is in high school and they have nothing more than a permit, they don’t need to be listed on your policy.

When they become licensed, however, they do need to be added. It might lead to a large rate increase, but the only way to avoid covering your licensed teen is to exclude them from your policy.

What happens when your student graduates high school?

As soon as your teen goes from being a high school student to a graduate, you have to consider how the life change will have an impact on your insurance portfolio as a whole.

You may need to make some changes to your health insurance plan, but the biggest change involves updating your auto insurance.

What happens to your auto insurance all depends on what your new graduate plans on doing right out of high school. If they are going to move out of your home and into a home of their own while they pursue their career, you might not even need to keep them on your insurance.

However, if they’re going to go to college and pursue a degree, you should keep them on your insurance but not without making updates.

Why should you keep an out-of-state college student on your insurance?

When you get that acceptance letter from a school all the way on the other side of the country, don’t feel sick to your stomach. Studies show that college students who study further away from home become more independent and self-sufficient early on during their college career.

Being self-sufficient as a young adult is a good thing but that doesn’t mean that you should jump the gun when it comes to removing your out-of-state student from your insurance.

Removing your student too soon could put your own finances at risk. As long as your student is still technically a resident of your home, they are your responsibility and you need to make sure they are insured.

What are the risks associated with removing your student from your policy?

You could have the most well-behaved child in the world but that doesn’t mean that they are going to make all of the best decisions while they are finding out who they are.

When college students are away from the watchful eyes of their parents, they tend to push the limits. Not extreme limits, but limits nonetheless.

When a college student has their license, they might think it’s a big deal to borrow a car so that they can drive to the store or to a hangout.

The car’s primary insurance may cover them, but there’s a possibility it won’t, which leaves you picking up the pieces if there’s an accident.

Unfortunately, when you remove your student from your insurance, you have no protection while they are driving borrowed cars.

Is there a way to update your policy when your student is away?

You don’t want to endorse your policy by removing your teen, but there are updates that you can make to save yourself money.

One of these updates is to classify your child as a ‘Student Away at College’.

Not all college students qualify for this rating. You have to meet these guidelines for this classification:

  • The student must be enrolled in a college or 4-year university
  • The school the student is attending must be at least 100 miles away from the insured address
  • The student must be under the age of 25 for the classification
  • The student cannot bring an insured car with them or have regular access to a vehicle

How much will the ‘Student Away at School’ rating save you?

There are a lot of benefits to classifying your student as away, but the biggest benefit is the cost savings. The actual discount for the classification depends on the company that you’re insured through, but the savings can be significant.

If you combine the Distant Student and Good Student discounts, you could watch your rates plunge right before your eyes.

In addition to cost savings, you’ll enjoy full protection if they borrow a car and cover while they are at home visiting. Not to mention your student will maintain continuous coverage so they can get discounts when they buy their own policy.

Life changes after high school for everyone. You think you’ll worry less but you tend to worry even more. The best thing that you can do is be prepared for the unexpected.

One thing that you must do is update your auto insurance. Look for new rates and new discounts online, and then secure the policy that makes the best sense.

If you’re moving away for college soon and need better auto insurance rates, start comparison shopping by entering your ZIP code below!

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