Out-Of-State Students And Auto Insurance: What You Need To Know

If you're a student with a car, heading off to college in another state, you may be wondering about auto insurance. The good news is that you may not need to change your insurance policy, but it depends on several factors. These include whether you're taking a car to college, who owns it, and whether you'll be living on or off campus. Most states allow students to stay on their parents' insurance if their primary address is still their parents' home, but some states and insurers may require a separate policy. It's important to check with your insurance company and understand the laws of the state you'll be studying in.

Students may need their own policy if they have a separate primary address from their parents

If your child is a student who will be attending school out of state, you may have questions about automobile insurance, license, and registration. The good news is that you may not have to change your car insurance policy, get a new license, or re-register your vehicle. However, the answers depend on several factors, and it is essential to understand the facts and what to expect when your child brings a car to an out-of-state college.

Insurance Policy

In most cases, a student attending college without a car whose primary residence is still their parents' home in a different state can remain covered by the parents' insurance in their original state of residence. If the student lives over 100 miles from home, some insurers even offer a discount on the family's policy.

On the other hand, if your child owns their car and automobile insurance policy, they should contact their carrier to determine if their policy needs to be changed while driving on campus. Typically, insurance companies have a mileage restriction for out-of-state drivers, including students who live more than 100 miles away from home. If your child plans to remain on campus or out-of-state for most of the year, including summer breaks, they may be considered a resident, and the car insurance policy may need to be modified. In such cases, it is recommended to change the car policy to the state where they attend school.

Vehicle Registration

Regarding vehicle registration, most states do not require full-time students to change their vehicle registration location or driver's license. However, it is crucial to check the specific requirements of the state where your student will be attending school. If your child will be living off-campus or staying past the regular school schedule, the state may consider them a permanent resident, requiring a change in registration and license.

Discounts

Out-of-state students and their families may be eligible for rate reductions and policy discounts if they meet certain criteria. For example, some insurers offer a "student away at school" discount if the student attends a university or college more than 100 miles away and does not bring a car. Additionally, students earning a B average or higher in college may qualify for a good student discount, resulting in premium savings.

In summary, while students may not need their own policy in all cases, it is essential to consider factors such as the student's residence, vehicle ownership, and usage. Contacting the insurance company and understanding the specific requirements of the state where they will be attending school is crucial to making an informed decision.

Students can stay on their parents' policy if they haven't moved out permanently

If your child is a student who is attending college out of state, you may not need to make changes to your car insurance policy. However, it's important to note that your student's new address could result in changes to your policy and coverage, which may lead to higher premiums or deductibles. In such cases, it is advisable to compare rates from different companies and consider switching if you find a better deal.

College students leaving home for school are generally still considered part of their parent's household. If the parents own the car that the student will be taking with them, it will typically remain insured under the parent's auto policy. This is especially true if the student's primary address is still their parent's home. In such cases, the student can usually be kept on the parent's policy.

If your student owns their car and auto insurance policy, they should contact their carrier to determine if any changes are needed. Insurance companies often have mileage restrictions for out-of-state drivers, and the policy may need to be updated accordingly. If your child plans to remain out of state for the majority of the year, including summer breaks, they may be considered a resident of that state, and the car insurance policy may need to be modified.

It's important to consult with your insurance representative and review your coverage options carefully. Keeping your student on your policy can provide extra coverage in certain situations, such as when they need to drive during breaks or when they are passengers in someone else's vehicle. Additionally, your student may be eligible for student-specific discounts, such as the "good student" discount or the "distant student" discount, which can help offset the higher costs of having a student under the age of 25 on your policy.

Students should check with their insurer and their school's state laws

Students who attend college out of state may not need to change their car insurance policy, but this depends on several factors. It is important to check with your insurer and be aware of the school's state laws.

Firstly, if the student is taking a car to college, it is essential to establish who owns the vehicle. If the car is owned or co-owned by the student's parents or guardians, the student will likely be able to stay on their parents' policy, even if they are attending school in a different state. However, if the student is the sole owner of the vehicle, they will likely need their own policy.

Secondly, consider the student's primary address. If the student's primary address is the same as their parents' address, they can usually remain on their parents' car insurance policy. On the other hand, if the student has a separate primary address, they may need to obtain their own insurance policy.

Additionally, it is crucial to be aware of the laws in the state where the student's college is located. Some states, like Massachusetts and Nevada, allow out-of-state students to keep their cars registered and insured in their home state while attending college. In contrast, other states, such as Alaska and Idaho, require students to change their registration and insurance after a certain period.

Students who remain on their parents' policy can benefit from lower premiums, as it is typically more expensive for drivers under 25 to have their own policy. Staying on the family policy can also help build a record of uninterrupted insurance coverage, potentially reducing premiums when the student eventually obtains their own policy.

If a student needs to obtain their own insurance policy, they may be eligible for discounts such as the good student discount and the good driving discount. Shopping around for multiple quotes and inquiring about available discounts can help secure affordable insurance.

Students may need their own policy if they take a car owned by them to college

Students who own their cars and are attending college out of state may need their own auto insurance policy. This is because some states and insurers require out-of-state college students to have their own policy. The specific requirements depend on factors such as the location of the school, who owns the vehicle, and whether the student lives on or off campus.

If the student's car is registered and insured in their parent's name, the parent may still be held liable for any accidents or damage caused by the student while driving. This is called "vicarious liability". To avoid this, parents can consider transferring ownership of the car to their child and having them register and insure it in their own name.

Additionally, students who buy their own insurance policy using their school address or who change their driver's license to the new state will also need to register their car in that state. This is because the vehicle registration and insurance must always match the owner's permanent address.

It's important to note that insurance is typically more expensive for younger drivers, and registering a car in a different state or city can further increase the premium. Students who remain on their parent's policy may be eligible for student-specific discounts, such as good student discounts and distant student discounts.

Students may be eligible for student-specific discounts

Additionally, if a student earns a B average or higher in college, they are eligible for a good student discount (up to age 25) that can yield premium savings of 5% to 25%. The largest good student discount can be found at Allstate, with savings of up to 20% off the standard price. However, State Farm offers the cheapest car insurance with a student discount, with a minimum-coverage policy costing $71 per month or $848 per year, a 17% savings for good students.

Students can also save money by taking an optional defensive driving course. Completing such a course can sometimes trigger a rate reduction. Maintaining a clean driving record is another way to save, as students may be eligible for an accident-free discount if they don't receive any moving violations or incur any claims over a certain period.

Lastly, opting for technological monitoring can help reduce premiums. If the carrier offers it, parents can install a removable telematics device in their student's vehicle to collect data about their driving habits.

Frequently asked questions