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How Kids Going Away to College Can Impact Your Auto Insurance Premiums

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How Kids Going Away to College Can Impact Your Auto Insurance Premiums
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As the summer draws to a close, many parents are preparing to send their kids off to college. This exciting milestone comes with a mix of emotions and a laundry list of tasks. Among these tasks, it's important to consider how this change might impact your auto insurance policy. Whether your child is leaving their car behind or taking it with them, understanding the potential changes to your insurance premiums can help you save money and avoid any unwelcome surprises.

Lower Premiums When Your Child Is Away Without a Car

If your child is heading to a college more than 100 miles away and leaving their car at home, you may be eligible for a significant reduction in your auto insurance premiums. Many insurance companies offer a “student away at school” discount. This discount recognizes that your child won't be using the car regularly, reducing the risk of accidents and claims.

To qualify for this discount, you typically need to provide proof that your child is enrolled in a college or university that is a certain distance away, often 100 miles or more. This proof can include:

  • A copy of their student ID
  • A copy of their class schedule
  • A letter from the school confirming their enrollment and location

By informing your insurance company of this change, you could see a noticeable reduction in your premiums, which can be a welcome relief as you handle the various expenses associated with sending a child to college.

Updating Your Policy if Your Child Takes the Car

On the other hand, if your child is taking their car with them to college, it's important to inform your insurance agent. The car's new location can significantly impact your insurance rates. Insurance premiums are often based on the zip code where the car is primarily parked. Factors such as local traffic, crime rates, and accident statistics all play a role in determining the cost of coverage.

Failing to update your insurance policy with the correct zip code can lead to complications if you need to file a claim. Your insurance company might deny the claim or adjust your premium retroactively, leading to unexpected costs. To avoid these issues, make sure to:

  • Provide your insurance agent with the new address where the car will be parked
  • Update the car’s registration if necessary
  • Talk with your agent about any coverage needs

Making the Most of Available Discounts

In addition to the “student away at school” discount, there are other ways to potentially save on auto insurance when your child goes off to college. These can include:

  • Good Student Discount: If your child maintains good grades, typically a B average or higher, they may qualify for a good student discount.
  • Multi-Policy Discount: Bundling your auto insurance with other types of insurance, such as homeowners or renters insurance, can lead to additional savings.

Conclusion

Sending your child off to college is a major life event that comes with many changes, including adjustments to your auto insurance policy. By understanding how your child’s new location can impact your premiums and taking the appropriate steps to update your policy, you can potentially save money and make sure that you have the right coverage in place. Whether your child is leaving the car at home or taking it with them, communicating with your insurance agent is key to making the most of available discounts and avoiding any surprises down the road.

For more information on how going to college can affect your auto insurance premiums, consider consulting with your insurance provider or visiting resources such as Insurance Information Institute and National Association of Insurance Commissioners.

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