Insurance Vent

[Feralpeg]

My daughter graduated from college last May. Today, we got a note from State Farm indicating that her car insurance will be increasing because she will no longer get the "good student" discount. So, now that she is not in school, that makes her a different type of person and a driving risk? Makes no sense to me.

She will be going back to school full time in September to get her masters. Not sure how that affects anything.

I just really don't get insurance companies!

 

[golfgal]

She will get a BIG drop in her rates at age 24 or 25 though. She is still in the "teen" driver rate class until then. From an insurance standpoint it makes perfect sense-when she is in school she is IN school for 8 hours/day or whatever, not driving around-and are usually under a parents supervision. After she graduates that does change the kind of driver she is-still a "newer" driver but now she potentially has a job, is commuting in traffic etc. so still risky, just in a different way.

 

[DVC-Don]

Here the Good Student discount stays on until they are 25 before it drops off. BUT! The rates for those 25 and up are lower so it's often a wash.

 

[Kasmooth]

I would think its just like any other discount if you no longer meet the requirements it's dropped, even if she still is a good driver.

 

[kathie859]

Call your agent to see what they can do for you and let them know you are shopping your total insurance needs right now. Then do it. Call several companies to get auto, homeowners/renters, and life/accident premium quotes. I do this every year and am constantly amazed at the wide range of premiums and have been known to jump ship to another carrier due to price. Just make sure you are comparing similar coverages