When your child graduates from high school and heads off to college, this move does not mean that you are no longer responsible for ensuring your child has adequate auto insurance. Driving with insurance is a safety parameter that is necessary no matter where the child is. However, particularly, if this move transcends across state lines, there are some important factors to keep in mind when it comes to your auto insurance policy.
Notify the Insurance Company
As soon as your child goes off to college, it is important that you notify the insurance company. This step is important for many reasons. First, if the vehicle is housed in a state other than the one on your policy and the vehicle is damaged and you need to file a claim, an insurance company may be able to legally deny the claim.
Second, even if your child plans to leave their car at home, notifying the insurance company ensures the vehicle has the coverage it needs, which in this case may be less coverage since the vehicle will not be driven as much.
Update the Insurance Location
As stated previously, it is important to notify the insurance company that the child has moved, but not just to ensure they have adequate coverage. Insurance costs are based on several factors, including the area where the vehicle will be located most of the time. Consider a scenario where a student lives in a major city but is going to college in a small town, for example.
In this scenario, the cost to insure the vehicle in the smaller city would likely be much less than the cost to insure it in a larger city, given the risks. Give all the information you can to ensure you secure the best rate.
Get Grade Reports
If your child is heading off to college, you are sending them off with the expectation they will do well. However, if they can fulfil this commitment, their good grades can save you a great deal of money. In addition to a student discount, some insurance companies will also offer discounts to student drivers who make good grades. Keep in mind that the insurance company will require an official record from the school showcasing these grades and the discount will likely need to be renewed each policy term.
If you need assistance with securing auto insurance coverage for your child in another state, be certain to keep all these factors in mind to ensure your child has the coverage they need, at the right price.
Purchasing insurance — the right insurance — is one of the smartest things you will ever do. While there are definitely differences between homeowners, car, life, and health insurance policies, they all serve the same purpose when it comes down to it. Insurance protects you against financial ruin should a tragedy happen in your life. In the case of homeowners insurance, that tragedy could be a fire or a flood. In the case of life insurance, that tragedy would be your death. The more you learn about insurance, the better the decisions you'll make when purchasing it. So dive into the articles here, and start reading.