It’s exciting for parents to see their children off to college. Along with a new chapter, new friends and an opportunity to continue learning, many parents send their teenagers to campus in a vehicle they own, trusting that their young drivers will be able to safely and easily chart a new path forward. However, it’s important to note that this change may affect your auto policy in several ways.

Amending the garaging address could impact your premium depending on where the vehicle will be driven and stored. If parking at a dormitory, there is an increased risk of theft or vandalism.

Premiums may still increase if you or your child were not driving the vehicle at the time of loss, regardless of fault.

Many carriers offer a small credit for good students. If your child has a B average or better, they may be eligible for a discount. A copy of their transcript may be required for verification.

To help minimize the financial burden, ensure your child is listed as a driver on your primary and excess liability policies. Speak with your broker to ensure your liability and uninsured/underinsured limits are sufficient for the area where the child will be driving the vehicle. If your student is attending college out of state, be aware that different states have different insurance requirements.

Make your child aware that they are responsible for making appropriate choices when sitting behind the wheel, and let them know of the potential repercussions.

While heading off to college brings many new and fun opportunities, it’s essential to emphasize safety, responsibility and ensure you’re adequately protected.

Personal Insurance Team