Car Insurance and College Students

Car Insurance and College StudentsWhether the young driver in your family is about to begin their first year at college, or is a senior on the verge of being through with higher education forever, they're still considered a young driver - at least for insurance purposes - until they reach the age of twenty-five. This means that they'll be paying the highest rates, so finding ways to offset the high cost of auto insurance is a must.

If your college student is living at home, or maintains your home address as their primary address, you're allowed to keep them on your insurance until they're twenty-five, as long as they stay in school. This means that if your budding business owner wants to pursue an MBA, and you're willing to keep them covered on your policy, you can. This is usually the least expensive option.

While covered under your policy, discounts still apply for maintaining good grades. If your student is leaving the car at home, and no one else is using it, you may be able to save money during the school year with a special "reduced coverage" policy that is only in effect during school holidays.

If your college student has established a full-time residence away from home, however, they'll need to establish their own auto insurance coverage in their own name. This will be more expensive in the long run, but chances are good that they'll be able to cut some costs by keeping their mileage low, their driving record clean, and taking a defensive driving class.

Rates vary based on whether your college student is driving in an urban, suburban, or rural environment most of the time, so your daughter studying animal husbandry at a school in the middle of the Great Plains is going to pay less than your son studying art or design in a major city. Be sure to account for this when speaking to your agent, whether or not you're keeping your college driver on your policy, or walking them through the process of getting their own insurance.

Other discounts may apply, and of course the make and model of your student driver's car and their credit scores (or yours) will come into play as well, so always be certain to ask if there are any other ways you can save money.

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