OT - Auto Insurance Reduction For Child "Away At School"

[DerbyDad03]

Just an FYI...

My auto insurance company just lowered the premium for one of the 3 cars on my policy. Earlier this summer we bought a car for my college age daughter for her to use while she was home for the summer. She did not take the car with her when she went back to school, so I called my insurance company to see if we could save any money. With 3 cars but only 2 drivers in the house, we obviously can't drive all 3 cars at once.

They told me that as long as the school was at least 100 miles away, they could mark her as "Away At School" and cut the premium about in half. That way we can leave the car registered for both our use and for her to use if she comes home for weekends and holidays.

[TomR]

Or, in the alternative, if one's child takes the car to keep at school for use while there, the rates can go up.

[passerby]

Why is she still on the policy, anyway? I've had the same situation a couple of years ago when my last kid went to college and I was advised by the Ins. Co. (esurance) to simply take her off the list of drivers on the policy. The savings produced by removal of a teen-aged kid from one's policy cannot be overstated. I think it was something like 70% in my case. OTOH, they would not let me add her to only one car - the one that she actually drove - in the first place. The explanation was that if she's living with us, she has access to both cars (fair enough - that was true on many occasions) and should be added to both. So, perhaps my policy was overprices to begin with.

Anyway, regarding the situation when a kid leaves for college, the agent at esurance did not seem to mind/care/oppose the idea that she does come back every once in a while (including 3 months long summer breaks), as long as her stay is considered temporary. The school is about 200 miles away but I do not remember anyone asking me the question, so I don't know if that played a role.

[krw]

Leaving her on the policy covers her, and you, if she's driving someone else's car, for some reason. Some insurance companies will surcharge you for a licensed driver in your "household", even if they aren't listed on the policy.

Could be. Companies and policies vary but be *very* sure. It wouldn't hurt to let your agent know the situation, in writing. Unlike changing a faucet or wiring an outlet yourself, it really is important to get this right.