Auto insurance for students away at college - questions

[TinkOhio]

I'm hoping that people reading this might share some insight and suggestions about auto insurance for our daughter. We live in Ohio, and she is a freshman at a school in Florida. She worked for two summers to save for her car and would like to take it down for the Spring semester. The car is in my name because she was a minor when the car was purchased. She is on our insurance policy, but she has not driven her car since she left for school in August.

It might have been a foolish move, but I called our insurance company to see how much it would cost to cover her if she took her car down to Florida. I was told that it would cost an additional $300+ per month! She has never had an accident and qualifies for the good student discount. We have only made one claim in the last 30 years and qualify for discounts because of it. Did I even need to call? If we allow her to take her car down, it will only be for the 4 months that the semester lasts. She will not be a resident of the state of Florida. Do we even need to do anything to the insurance? A friend's son went to school down south and never notified the insurance company because she considered her son a full time resident of Ohio.

Thanks for any insight and suggestions about this situation.

 

[MillauFr]

Does she even need a car at college? My daughter wanted a car and I said no. I told her to check out the U-Car on campus, use Lyft, or ride a bicycle. I told her she probably won't have a car after she graduates so why have one in college?

 

[lost*in*cyberspace]

Do not lie to your insurance company. Insurance requirements differ from state to state. If you don't want to pay the additional fee, leave the car at home.

 

[mjkacmom]

Does she even need a car at college? My daughter wanted a car and I said no. I told her to check out the U-Car on campus, use Lyft, or ride a bicycle. I told her she probably won't have a car after she graduates so why have one in college?

Where do you live that she won't need a car? I love that dd20 has a car at college (she lives off campus and has a job 20 minutes from her apartment). I'll be thrilled when ds18 can bring his on campus next year (currently has to take an uber/train/light rail to get to and from school). Dd20 will most likely end up working in NYC after graduation, and use public transportation, but will need a car for day to day living.

OP, I wouldn't even think to call my insurance company in your situation. I'd keep things as they are.

 

[Donnainnj]

Wow, I think I would look at another insurance company unless she has a really high end car with collision. My daughter is also away at college in Florida, the first year we didn't let her bring the car so we got a discount, then when we took it down this summer the insurance went up the $400 and a little more for the year beacuse she is in Florida. The total for the year is no where near your increase.

 

[TinkOhio]

Thanks for the replies. I would never lie to my insurance company. The insurance agent that I spoke with said that there are much higher auto theft, collision, and insurance fraud rates down there, and that those factors really drive up costs. I knew that our rate would go up. Auto insurance costs in general are much higher in Florida than here. I just couldn't believe how much more!

My daughter's car is far from high end. She attends a small school and wants the car because she is sick of having to ask friends for rides or pay for an Uber. The car would also be useful for year end when she needs to pack up her things and come home.

Is it worth it to shop around for a new carrier? Our auto and home insurance are bundled. Is it really necessary to report to your insurance that you or someone on the policy will be driving it somewhere else if they are not living there full time? And can our current carrier deny to pay for a claim should she just take the car down?

Thanks, again, for any input.

 

[Donnainnj]

I think I remember a 30 days or more clause. Not sure if it is the insurance company or an industry rule, could also have to do with the state you reside.

 

[clm10308]

it is going to cost more money for her to take the car to school no matter what you do. I think we pay $300 extra per year for my DD to have a car at school (and the car is 14 yrs old).
Yes, the insurance company can refuse to pay if you don't tell them. Also, if the insurance is not valid because the move was not reported, technically, she could get a ticket for lack of insurance if she is in an accident. (If she gets pulled over for speeding I doubt it would be an issue though)

 

[Ranger111]

1) YOU MUST INFORM YOUR INSURANCE COMPANY

2) What they do about it is up to them.

My daughter took her car from Oregon to Colorado to go to college, rates went up slightly.

She then left college in Colorado to attend college in IOWA. Rate DROPPED even below the Oregon rates

As mentioned it depends on the location.

If she is involved in some minor thing, odds are it won't matter if you did not inform the company because they are not going to hassle with checking out any information (but they could).

However, if she was involved in a major incident, people will be checking into things and when it comes forth that you did NOT inform the company of the change in use, they can (and probably will) drop your coverage completely and then you (or she) will have absolutely no coverage. Not a big deal for a $500 dent, but a major big deal for a $500,000 or more major accident with injuries, property damage or even death.

Not telling the insurance company puts you at major risk (and that could include you, as any injured party could sue you also in addition to your daughter and probably would).

And, yes you should shop around. You should do that on a yearly basis, irregardless....

So, do you feel lucky.

 

[TinkOhio]

Lol! Thanks for the funny spin on a serious situation. I guess it's time to shop around.

 

[Hikergirl]

Definitely shop around. I have been with the same insurance company for 16 years. We added our dd last year but I never bothered to check other companies. Dh just bought a second vehicle for himself yesterday so now we have 4 cars on our policy. I decided to check around, found esurance.com was $1600 a year less than I am paying now. That is even with adding comprehensive and collision on 2 cars that don't currently have it.

 

[Judique]

Lol! Thanks for the funny spin on a serious situation. I guess it's time to shop around.

I think I would first call my current company back and speak to another agent.

I think the quote you got was bogus.

I do agree with telling your insurance carrier about a change in use. It works both ways - if the car is not being driven, you can have a suspension of premium while your child is in school.

 

[Mackenzie Click-Mickelson]

Yes you needed to call your insurance company. Each company, each product and each state has different laws. You need to talk to your insurance agent/company.

 

[KiniShakenBake]

Oh wow. Yes, you do need to tell your insurance company. If something happened they could invalidate your insurance for not telling them something material like that.

Drivers are "bundled" by insurance companies based on where they are, and statistically relevant rating demographics. That may sound crazy but a 40 year old married teacher is a very different statistical risk than a 16 year old boy with poor grades. I am an agent explain this day in and day out. See also, 80 year olds and 16 year olds have similar loss ratios, which is why your rates start to go up as you pass a certain age.

Where a car is located determines the rate for insuring it - and the driver. The loss history of the area is factored into how they determine premium dollars charged for the area in question. You must tell them about the alternate garaging location, especially now that you've called them to ask. You might be able to plead ignorance if you just sent her off to college with the car and without another thought. As a student who maintains primary residency with you, she can keep it registered in your state, and insured in your state. The only difference is an alternate garaging location which will change the comp and collision.

I know budgets are important here, since hello budget board - I see it every day and talk with my clients about it every day: Insurance may feel expensive, until you see the cost of the lawsuit for someone who thought they hit a payday when they abruptly hit their brakes or you were briefly distracted. That REALLY creates a hole in the budget.

 

[Eastern]

Each state is different, but the best advice here is: never lie to your insurance company as that is fraud (not saying that you would). And if you just don't say anything, and you file a claim, they can deny your claim.

I am guessing that most people just skim over their renewal policy each year. There will usually be a section that you have to fill out that asks the address where your cars will primarily be garaged. If it changes, you need to tell them.

On the other hand, for my NJ policy, if my kids go to college more than 100 miles away from our home address and don't bring the car, our policy amounts decrease.

$300 per month sounds high: maybe they are quoting you a price for her own policy rather than being on your family policy.

 

[TinkOhio]

Thanks for the additional input. Again, I would not lie. And I will not send the car down without the proper insurance. I'll call around and see what other agencies quote us. It's not really an affordability issue, it's what we are willing to and need to pay. If the quotes still seem high, she can Uber. She will eventually be participating in internships and will need to have a car. At that point, we will pay what is necessary.

 

[tvguy]

My insurance agent said that while my kids were in college that my insurance company allowed me to have their car insured in the zip code the college was in, or my home zip code, whichever rate was lowest.
He checked that for me twice a year because it did change.
He also checked which of our vehicles was the lowest to list as the kids primary vehicle, without regard to which car they had at college (althought it did vary) because they were automatically covered on all our cars. (we had 4 drivers and 5 cars)
But my kids stayed in California, with DD going to college and living 50 miles from home, and DD going to college and living 200 miles from home.

You are paying your insurance agent to get you the lowest rate, so no issue calling him or her. Yes, you did the right thing calling your agent.

 

[NotUrsula]

If she is away at school, she should carry her own insurance, in her own name. If the car is hers, have her re-register it and change her license as well. (And yes, it might cost her a bit, but that's what being an adult is about. It's time to begin to establish her own separate financial identity.)

 

[tvguy]

If she is away at school, she should carry her own insurance, in her own name. If the car is hers, have her re-register it and change her license as well. (And yes, it might cost her a bit, but that's what being an adult is about. It's time to begin to establish her own separate financial identity.)

I'm not disputing the insurance, or having the car in her own name or paying her own way. But I'm not so sure changing her license and registering it at what is essentially a temporary address in Florida is a good idea. Especially since it appears she is back home in Ohio every summer. At this point of her life, until she knows where she will finally be settling, keeping mom and dad's home as her permanent address is probably a much better idea. I just know too many people who, despite forwarding mail, miss an important document if they are still at a transient time of their lives. That way nothing will be missed, and it has no impact on your credit rating.

 

[Ranger111]

If she is away at school, she should carry her own insurance, in her own name. If the car is hers, have her re-register it and change her license as well. (And yes, it might cost her a bit, but that's what being an adult is about. It's time to begin to establish her own separate financial identity.)

You win for most sensible....

We did exactly that for both of our kids as soon as they completed their first year of college. Recommended by our insurance agent (Farmers). Indeed, he even recommended ANOTHER insurance company, which he had no connection whatsoever because it is usually cheaper for young drivers, yet very good company. He was right, the kids got good rates from Geico.

Also, it would make our liability zero if the kids had an accident. So, we "sold" them their cars, they registered them and bought their own coverage. Seriously, the best way to go.