Can you believe your baby is already headed off to college or university? It probably feels like you were taking them home from the hospital just yesterday! This is an emotional time and you’re most likely feeling sad, excited and a little scared at the same time. In this article, we’re going over one of the details you probably didn’t think of when it comes to your child heading off to university: how does it affect your auto insurance rates?
Keep reading to learn how your insurance could be affected by your child going to college or university.
How is your car insurance affected?
If you added your child to your car insurance policy when they were in high school, you probably noticed an increase in price. It can be expensive to add a young and inexperienced driver to your policy!
If your child is going off to college or university and will no longer be driving your car on a regular basis, you may be able to list them as an occasional driver instead of a primary driver. If your child is moving to a new city or province to attend school, you may want to remove them from your policy entirely.
It’s a good idea to have a conversation with your insurance broker. You can explain exactly how often you expect your kid to be driving your vehicle. Your broker will advise whether you should keep your kid as a primary driver, change their status to occasional driver, or remove them from your policy altogether.
When speaking to your broker, it’s important to be honest about how often your child drives your vehicle. If your son or daughter takes your vehicle with them to university, don’t try to get away with listing them as an occasional driver. It might be tempting since it is less expensive. However, if your child is involved in an accident, your claim could be denied. It could also result in difficulties getting insurance in the future and higher insurance premiums. Honesty is the best policy!
Why should you keep your child on your car insurance policy?
Even thought it can be more expensive, there are a few reasons to keep your child on your car insurance policy while they’re away at university:
- Keeping your child on your car insurance policy maintains continuous insurance coverage. This can help them out in the future when they get their own car. A longer record of accident-free insurance coverage can help them get lower rates.
- When your child returns home for holidays, they’ll be able to drive your vehicle as often as they like. You’ll have more confidence knowing they’re covered.
It’s up to you to decide if you want to keep your child on your car insurance policy when they attend college or university. Have a conversation as a family and consult with your insurance broker to determine what makes the most sense for you.
Checklist: What to do with your car insurance when your child goes to university
From a car insurance perspective, consider the following when your child goes to college or university:
- Determine how often your child will use your car once they go to post-secondary school.
- Decide if they will be a primary or secondary driver, or whether to remove them entirely from the policy, especially if they are moving to a different city or province to attend school.
- Call your insurance broker to update your policy. It’s important to let your broker know of any major updates. It will only take a few minutes and will ensure you have the best possible coverage for your needs!
Contact BrokerLink today for all your insurance needs!
Whatever stage of life you’re in, BrokerLink can help you find the insurance you need. A child starting college or university is a great opportunity to check in with your insurance broker and make sure you have coverage that makes sense.
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how does my kids going to university affect my insurance rates? FAQs
Can I remove my child from my auto insurance policy?
Yes! You can modify your insurance plan as necessary. Simply call your broker and they will remove your college or university student from your policy.
What should I do if my student has a bad driving record?
The only thing that can fix a bad driving record is time. Encourage your child to drive as safely as possible so they can build up a good driving record. Accidents happen, but you can encourage them to drive within the speed limit, observe all the rules of the road and drive defensively. You can also encourage your student to drive at off-peak times when it’s less busy and there’s a lower chance of getting in an accident. Driving school is another great option. It will encourage good driving habits and it can reduce your insurance rates.
Will my child going to college or university affect my car insurance negatively?
No, this will not have a negative impact on your car insurance.