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Auto Rates When Your Child Leaves For School

If your child has been added to your auto policy either as an occasional or principle driver, you might be tempted to remove them once they’re out of house and away at school; after all, their premium charges aren’t the cheapest. However, there are a few things that you should consider first before doing so, things that could save you money and help your child in the long run.

1 KEEP YOUR CHILD ON YOUR INSURANCE POLICY

When young drivers first get their license, especially young males, the cost of owning an insurance policy can be quite high and maybe not financially realistic. It usually makes the most financial sense to just add them on their parents policy as an occasional driver. This allows them to gain driving experience as well as insurance experience for when they get their own policy. By leaving your child insured on your insurance policy it allows them access to your vehicles when they’re home for a visit, and builds their insurance history.

2 SHOW CHILD AS “AWAY AT SCHOOL”

If your child isn’t taking a vehicle to school with them, you may be entitled to a discount on their portion of the premium. Most companies offer huge discounts, some ranging up to 75%, depending on how far away the school is from home. The farther they are away from home means the less likely they’ll come home for a visit and drive a vehicle.

3 GOOD STUDENT DISCOUNTS

If your child is receiving good grades at school (typically 80% and higher), there may be a discount on their portion of the premium. This discount may even apply for a number of years after the student has graduated.

4 STUDENT IS BUYING A CAR?

If your child is purchasing a vehicle to take to school, or are simply commuting to school from your home, you may be eligible for a multi-vehicle discount. It’s a good idea to ask a HMS broker if your auto insurance provider may be a good fit for your child’s insurance policy. Having two policies with the same provider could give you large savings with the multi-vehicle discount (usually 10-15%) on both policies.