Car Insurance and the College Student

Are you the proud parent of a college student? If so, you are probably also a very worried parent and perhaps even a financially-strapped parent. After all, putting a child through college can be a very costly endeavor. In addition to paying for college expenses such as tuition and books, you also have to worry about things such as insurance.

Will Going To College Affect My Car Insurance Rates?

When your child became a teenager, you likely saw quite a jump in your car insurance rates. This is because insurance companies consider teens to be at a higher risk of having accidents and causing claims to be filed. One of the reasons they are considered a higher risk is because they don't have much experience with driving and because teenagers often make poor decisions. So, you may be wondering if this will change now that your teenager is going to college.

There is a possibility that you will see a drop in your insurance rates when your child heads off to college. Just by simply going to college, your child is showing responsibility and a concern for the future that can be looked upon favorably by insurance companies. In addition, by the time your teen heads to college, he or she may have been driving for a couple of years. If your college-age child has a clean record, the insurance company may decide to give you a bit of a break in your rates.

Making Decisions

The overall effect going to college will have on your insurance rates will depend upon a few factors. For example, if your child goes to campus and does not take a car along, you may see a bit of a reduction. If your child still lists your home as his or her permanent place of residence, however, the insurance company will still charge you the rates you would be charged if your child still lived at home.

If your child does take a vehicle to college, you may have to change the policy to show that your child is the primary insured. This is because your child is physically in possession of the car. In this case, your rates will almost certainly go up.

Covering Medical Expenses

In addition to getting car insurance in place for your college-aged child, you also need to make sure proper medical insurance is in place. While your car insurance will likely provide coverage to your child if he or she is involved in a car accident, this won't take care of other injuries or illnesses. Therefore, it is important to get medical insurance in place as well.

If your child is going away to college, the doctors included in your health insurance plan may not be practical for your child to use. After all, it doesn't make sense to drive several hours to get to a doctor that is part of the "plan." Therefore, you may need to purchase medical insurance through the college. Thankfully, this coverage is generally relatively inexpensive and medical care is located near to the campus.

Shannon Kietzman is a freelance writer and an authority on car insurance issues, including methods for auto insurance comparison. She helps others learn the basics of car insurance so they can make proper and informed decisions when choosing the coverage that is right for them.