How Are Your Auto Insurance Premiums Affected When Your Child Goes Away to School?

Smiling student holds laptop
  • Many auto insurers offer discounts designed to help parents keep a lid on the cost of auto insurance, and there are three discounts worth exploring.
  • The discounts could see you 5% to 50% of the premium you’re paying for listing them on your policy.
  • Letting your student take a car to school full-time may be costly. Your young driver will no longer be an occasional driver, they’ll need to be listed as the primary driver.

September is right around the corner. With vaccines widely available and schools offering a mix of online and in-person classes, thousands of college and university students will soon be leaving the nest (and the car) behind.

If your child is going away to post-secondary school and is listed on your auto insurance policy, it’s time to give your auto insurer a call. It’s a call worth making as it could lead to a lower auto insurance rate.

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Student discounts help parents save

Many auto insurers offer discounts designed to help parents keep a lid on the cost of auto insurance, and there are three discounts worth exploring.

Student Away from Home Discount: If your college-bound student attends school in another city or province, they won’t be driving your car nearly as much. Their time behind the wheel will be limited to holidays, school breaks, and the occasional trip home for the weekend. As a result, many insurers offer a discount that could save you up to 50 percent of the premium you’re paying for listing them on your policy.

Good Student Discount: As the proud parent of a college or university student, keep in mind that their good grades are worth bragging about—especially since it may result in a discount. If available, a Good Student discount could save you up to five percent.

Driver’s Training Discount: If your student is a newly licensed driver who hasn’t taken an approved driver’s training course, it might be worth adding one more class to their schedule. You could save hundreds of dollars each year in premiums, for typically up to three years, after your child has successfully passed a driver’s training course.

Are you sending your child off to school with the car?

If your child is taking one of your cars to school, or you’re planning on buying them one to get around campus (and to classes on time), a call to your auto insurer should still be in the books. If the vehicle is in your name, you can list it on your existing auto insurance policy to take advantage of multi-vehicle discounts.

However, taking a car to school full-time may turn out to be costly, even with the discount. Since your young driver will no longer be an occasional driver, they’ll need to be listed as the primary driver to ensure the policy accurately reflects who is driving the vehicle most. Otherwise, you risk jeopardizing the coverage they’ll need should there be a reason to submit a claim.

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