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Car Insurance For College Students

by Krystian Sip,  Aug 12 2021

Parents are often unsure about their college students’ auto insurance. Especially if they study away from home. Leaving them on their insurance might result in a higher rate. Removing them from the policy, on the other hand, leaves their child not covered.

Should I leave my college student on my policy?

The question parents ask themselves most often is “Does my child need to remain on my policy when away at college?”.

There is no standard answer to this question, but it does depend on your individual situation.

Below are a few examples of when it would be best to keep your college student on your own policy.

  • Your college student regularly drives a vehicle owned by yourself, while at college.
  • They frequently operate your vehicles when coming back home from a college less than 100 miles away, for holidays and breaks.
  • They live at home, regularly commuting to college.

Even for college students studying more than 100 miles from home, who are not driving any vehicles at college, removing them from your policy, might not be a good idea, especially if they don’t have their own coverage. Taking them off your policy might result in them having a lapse in coverage, which in turn will most likely result in their premium increasing substantially once they decide to acquire coverage once again. 

How can I save on my college student’s auto insurance?

Considering the fact that drivers between the ages of 16 and 25 are considered “higher risk” drivers by the majority of insurance companies (they are statistically more likely to drive recklessly, file claims, and commit traffic violations), their insurance might often be more expensive than average.

It is important to know the ways in which you can successfully lower your premium. 

Here are a few examples of how you can ensure you get the best deal.

  • Many insurance companies offer a “student away from home” discount which can lower your premium to make up for the fact, that your student is not operating your vehicles frequently and therefore, becoming a lower risk. 
  • Good grades are not only meant to open up a bright future and make parents proud. With good enough academic accomplishments, meaning a GPA of 3.0 or higher, your student can receive a good student discount. The good student discount grants, on average, a 7% discount on the student’s insurance.
  • Some universities and colleges partner up with particular insurance companies, offering some extra discounts and competitive prices when insuring your student.
  • When studying more than 100 miles away from your student might also qualify for a distant student discount which, considering the fact that they will not be driving the vehicles frequently, might give you a discount of up to 35% for your student driver.
  • If your student leaves their vehicle behind to go to college, their vehicle is often not operated by anyone else in the household. It might be a good idea to change the coverage of the vehicle to in-storage coverage for their absence period. This might decrease your policy premium even further. Your vehicle will still be covered for vandalism, theft, natural disasters damage caused by animals, and falling objects.

Patience is a virtue

Insuring your college student might be quite a cost at first. Keep in mind that insurance companies rate young drivers using a variety of factors. 

One of the most important factors being the driver’s age. More mature drivers are considered a lesser risk than their younger colleagues, consequently resulting in a lower premium. As years go by.

Additionally, graduate students who completed their bachelor’s degree can expect some savings as well. Insurance companies consider graduate students more financially stable. They are less likely to engage in unsafe practices while driving, which can further bring down the premium.

Which company offers the best rates for college students?

To find out which company offers the best price in your individual situation, and which discounts are applicable for you, it is best to contact an insurance agent, who will be able to advise you on the best steps to take. You can speak to our licensed Gabi agent to get your evaluation at any time!

For more information, visit:

https://www.gabi.com

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Editorial content on Gabi.com is reviewed by a licensed insurance agent. It is intended for informational purposes only and should not be considered legal or financial advice.
Written by
Jessie Jordan
Jessie is a Marketing Specialist at Gabi. As a licensed insurance agent, she has been helping Gabi customers buy and understand auto, home, renters, landlord, and umbrella insurance in a digestible way since she joined the Gabi team in 2020. Before joining Gabi she was a globally recognized Senior Account Executive for UPS- trusted with advising top brands on how to grow and streamline their business.
Reviewed by
Robbie Boddy
Robbie is the Vice President, Head of Sales & Customer Experience at Gabi. As a licensed insurance agent, he has more than 15 years of experience in the insurance industry, joining Gabi after working with Liberty Mutual as the Assistant Vice President and Site Leader, Direct Sales and Innovation. Robbie is a member of the Chartered Property and Casualty Underwriters society and has a Master of Business Administration (MBA) from Grand Canyon University.
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