18

Saving On Insurance When Your Teen Leaves For College

posted on

In most cases, you should be able to save money on your car insurance while your child is away at college. Drivers that are under the age of 25 are generally considered to be high risk by car insurance companies because there is always the chance that they will be involved in accidents and claims will need to be filed. This makes the cost for insuring a young adult very high. If your teen goes off to college and is no longer using your car, then you can have your plan adjusted to help you save money on the insurance in the meantime. Here are a few ways that you can save money on your insurance while your teen is away.


Student Away Discount


If you don’t want to take your teen completely off of your policy, then you can ask for a reduction in rates. This would allow for your teen to be shown to have continuous coverage in case they ever need to purchase their own car and insurance in the upcoming years. There are a lot of car insurance companies that offer a discount which ranges from 15 to 30 percent off for students who are away at school over 100 miles from your home.


Remove Your Teen From Your Policy


There are many car insurance companies that will allow you to remove a teen who has left for college, assuming that their school is over 100 miles away. When the college is less than 100 miles away, car insurers believe there is a stronger chance that the teen returns home on a frequent basis and uses the household cars.


Good Student Discount


If your teen gets good grades, then it can help to lower their car insurance costs. Most car insurance carriers offer students up to the age of 25 a discount if their grades are able to meet a B average or better. The good student discount can vary and may be as low as 5 percent or as high as 25 percent depending on your insurer.


Change Teen To Occasional Driver


If your teen does remain on your policy, you can also find out if it’s possible to change them from a primary driver to an occasional driver. Definitions of an occasional driver can vary, but generally it’s someone who drives less than 25 percent of the car’s annual mileage.

There may be additional options that you may want to consider asking your car insurance provider about. Sometimes discounts vary depending on your location and your insurer. Other times, it may be more profitable for your teen to get their own insurance and work out lower rates via this option instead, though this depends ultimately on how often your teen will still use your car when they come to visit you in the future. If you have any questions or concerns, you should contact your local car insurance provider.