Saving Money On The Family Auto Insurance When A Teenager Heads To College
When a young adult is about to begin college, the parents might allow this teenager to take a family vehicle along. College students generally can still be included on the parents' auto insurance plan if they keep this address as their primary residence. Finding ways to make the insurance more affordable may be important for the family.
The Umbrella Policy
If the teenager has been using this car during high school, they should already be included on the automotive insurance policy as a driver. An umbrella policy covers multiple automobiles, along with each driver. That would have increased the premium amount. Insurance underwriters know that members of this population group are at greater risk of an accident.
It's time to consult with the agent and explain where this family member will reside during school semesters. It also might be advisable to shop for a different insurance plan if the rates seem too high.
Vehicle Location
If the policy includes collision or comprehensive coverage, it's essential to tell the agent where the vehicle will be parked most of the time. Otherwise, if damage happens while the automobile is there, the insurer might deny the claim. Parking location is a key factor in premiums.
Parking in a residence hall lot raises the risk of another vehicle hitting this automobile, as well as the possibility of vandalism. On the other hand, if the student will reside in an apartment or house with off-street parking, this is more favorable to the insurer.
College Location
Another factor is the school's location. In the underwriter's view, a smaller college in a small town is less risky than a big city university. Collisions are less likely. Unfortunately, even some of the more elite colleges are located in neighborhoods with high crime rates. That means a greater possibility of vandalism or vehicle theft.
Driver's Education
If there is time over the summer, the family could consider having the teenager complete a driver's education course. Some insurance companies offer significant discounts for these individuals. Teens with this credential have nearly 40 percent fewer citations and over 4 percent fewer collisions, according to a report from the American Automobile Association (AAA).
Good Student Discounts
Some insurance companies provide discounts to college students with high grade point averages. The underwriters consider this a sign of responsibility and good decision-making skills. After the student's freshman year, the family may assess the situation again to apply for these savings.
In the meantime, shopping for a better insurance plan may lead to improved rates for the same coverage. For more information about auto insurance, contact a local insurance provider.