Recently, one of our clients in California inquired about her daughter going off to college shortly, and wanted to know what we should do about the auto insurance; since she will not be taking her car with her to school.
Many colleges do not allow freshmen to have cars on campus and often require them to live in a dorm for the first year. This article will assume the child is going out of state or traveling across the state for college.
So, what are your options? If your child is attending school 100 miles or more away from home most carriers have an “away at school” endorsement available on the auto policy. This is a small discount insurance companies will give, but you may need to provide some type of proof, especially if the insurance company is already giving a good student discount of a grade point average of 3.0 or better. A transcript of the class schedule or a report card will work.
Another option is to completely remove the child from the policy if they are truly out of the household on a permanent basis, in which case an address where they will reside may be required by your company’s underwriting department. Just remember at some point if the child goes to get their own insurance and has not been listed on a policy they’ll have a gap of continuous insurance. So, it might be a good idea to keep them insured on the auto policy if for nothing else to show they have prior insurance when getting their own policy.
Insurance is one of those things that if you want to get the best rates you have to have a current policy or be listed on someone else’s policy (like a parent). Young adults will have to show insurability and a history of insurance or they’ll be placed in the non-standard insurance market for a period of 6 – 12 months. Typically, you’ll need to switch companies after the waiting period, as the non-standard company will want three years of continual insurance before qualifying for preferred companies within the same insurance company.
The options are to either keep on the policy, take advantage of the “away at school” discount if qualified, or drop them altogether and explain they may not drive one of your vehicles.
For more information on dealing with children in the household, whether attending school locally or away, please call us at 800-459-6060, and to receive quotes online visit: www.InsuranceBrokersGroup.com