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Insurance Changes Now that Your Child is at College (Part 1)

Aug 26, 2021

You just returned from dropping off your child at college.  The house is much quieter, you wonder if they are making friends, and hope they will call you with an update.  Beyond these initial thoughts, there are also some insurance matters to consider.  Today, the focus is on Auto Insurance.  Your child is not at home, is not driving your cars, so why not remove them from your Auto insurance policy?

This is an approach that many parents use.  They call their insurance company and ask to have their child removed (excluded) from their Auto policy.  This means their Auto policy would no longer cover their child as a driver.  While this seems like a good idea, there are two issues that should be considered.  While you may remember to take your child off the policy when they leave, are you absolutely sure you will remember to add them when they return?  What happens if they come home for a quick weekend or as a surprise and need to use the car?  I have seen many claims where the child comes home, has an accident in the car, and there is no coverage.  Similarly, what happens if your child drives a friend’s car at school and gets in an accident and that policy did not provide any coverage?

A better approach is to keep your child on your Auto policy and apply for the “Student Away at School Without the Car” discount.  Most companies offer a discount in these scenarios because they know your child has limited access to your cars.  The discount is based on the assumption that your child may only be home during the Summer and holidays.  However, they would be covered whenever they drive your cars; and you don’t have to worry about taking them off and adding them each time they leave and come home.

Stay tuned for Part 2 which will follow shortly and discuss the best way to cover their belongings while at school.