Having a young driver on your Rhode Island auto insurance policy usually means you pay more. Consequently, when it is time for your child to start college you many wonder whether you should take them off your insurance policy, or not.
Regrettably, there’s no clear-cut answer to this question. It depends on personal circumstances. However, the following will give you a general idea of when it’s a good idea and when it’s not.
Removing Your Student From Your Policy
In certain circumstances, it makes sense to take your student off your policy. Nonetheless, how you go about this depends on the insurer. Some carriers allow temporary exclusions, while others don’t.
Generally, you will want to look into a temporary exclusion if your student will be:
- Living on campus
- Won’t take a car to school
- Will only visit home occasionally
In this case, your insurance premiums may drop substantially. The amount depends on their age and driving record. You will also need to add them back if they intend driving when they’re back on breaks.
Another case where you should consider removing them from your policy is when they will be live permanently at another address. If they buy their own vehicle, they should obtain their own insurance policy.
If your carrier does not allow a temporary exclusion, it is a matter of keeping, altering, or cancelling coverage.
Keeping Your Student On Your Policy
In some cases, it makes better sense to keep your student on your policy. For instance, if your student:
- Will bring a vehicle to college for regular use
- Will commute to and from college often
- Or, you will retain an interest in the vehicle
Nonetheless, there are advantages to keeping your student on your policy for other reasons. These include:
- Coverage both away and at home
- Able to drive during an emergency
- Protections if injured while walking, biking, or driving someone else’s vehicle
- Potential for a good student discount (normally a B average or better for a 5 to 25 percent premium reduction)
- Uninterrupted insurance coverage for lower insurance premiums when they self-insure
Other Possibilities
You may not want to remove your student from your policy completely. Fortunately, you have other options. For instance, a “student away” discount offers a discount of between 15 and 30 percent on some coverages, providing the student will be at least 100 miles away while at college.
You may also be able to switch your student from a primary to occasional driver. The definition of occasional varies between insurers, but generally it applies to someone that drives less than 25 percent of the vehicle’s annual mileage.
This is definitely a time when the expertise of a professional insurance agent can benefit you. We can provide you with advice, shop for the best possible rates, and seek applicable discounts.
We’ll also tell you what’s the most efficient ways to handle insurance needs if you want to change or drop coverage and re-add it later. Insurance choices should be about affordability, protection, and convenience. We’re here to help! Contact us, today.
