September is around the corner and soon thousands of college and university students will be leaving the nest and heading off to school. If your child has been added to your auto insurance policy, you should call your auto insurer; you could save money as a result.
Reducing Insurance Costs for Post Secondary Students
Here are some ways to save on auto insurance costs while your child is attending school:
1. Keep your child on your insurance policy.
The cost of independently owning a car insurance policy can be quite high for most young drivers, especially young males. For both you and your child, it typically makes financial sense in the long run to keep them insured under your policy as a secondary driver while they’re away. It can also be more cost efficient than completely removing them and adding them again once they move back home. Plus, it will help them build a clean insurance record and ensure they’re covered should they use the car when they come home.
- Related Read: School’s Out and the Kids Are Home for the Summer
2. Consider changing your child’s insurance status to “restricted.”
If your child won’t be taking your car with them to school, you may be entitled to a discount on their portion of your current premium. Depending on how far away the school is from home, you could see a reduction up to 50 per cent. However, make sure you inform your insurance professional when your child returns home for the summer so you can adjust the policy accordingly.
3. Ask for “good student” discounts.
Students who have good grades may be eligible for discounted premiums, which can make a significant difference in your overall insurance costs. Additionally, students up to the age of 25 that have completed government-approved driver training programs may be eligible for additional insurance discounts.
- Ask the Expert: How much does a driver’s training course actually save on car insurance?
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4. Compare quotes before buying a new car
Most insurance companies offer multi-car discounts for customers, allowing you to insure your child’s car at reduced rates—as long as your name is also on the policy. If your child plans to get their own vehicle, be sure to compare insurance quotes to find a car make and insurer that caters to your child’s needs—and their budget.
- Related Read: Best Back-To-School Cars For Students
5. Remind your child of the importance of a clean driving record.
It’s always worthwhile to preach safe and defensive driving practices to keep your child from making life-costing mistakes on the road. Also, the slightest blemish on a young driver’s record can cause significant increases in premium costs.
6. Shop around if you don’t like your current premium.
Call your insurance provider to discuss the changes that your family is about to experience. Your insurance professional can answer questions that are unique to your personal situation and show you how to keep your insurance costs manageable while maintaining the coverage that you and your child need.
If your rate remains the same or increases with your current provider, remember that you always have the option of shopping around for a better rate. Compare auto insurance rates easily through InsuranceHotline.com to see if there’s a better rate available.