6 Smart Ways College Parents Can Save on Auto Insurance for Their Student
For many families, sending a child off to college comes with a long list of new expenses, and auto insurance is often one of the more surprising ones. Whether your student is taking a car to campus or leaving it at home, auto insurance premiums can spike during these years, especially for young drivers who are considered higher risk.
The good news? With a little planning, there are several ways to reduce auto insurance costs without sacrificing necessary coverage.
1. Take Advantage of the “Student Away at School” Discount
If your student is attending college more than 100 miles away from home and doesn’t have a car on campus, you may qualify for a “student away” or “resident student” discount. Since your student won't be driving regularly, the insurance provider may offer a lower premium.
Be sure to call your insurer and ask about this discount. Most companies will require proof of enrollment and the distance from home.
2. Ask About Good Student Discounts
Many insurance companies offer discounts for students who maintain strong grades. If your student has at least a 3.0 GPA or a B average, you may qualify for a good student discount—potentially reducing your premium by up to 25 percent.
You’ll typically need to provide a transcript or proof of academic standing each term or academic year.
3. Reevaluate the Vehicle Being Insured
If your student is taking a car to school, it’s worth considering what type of vehicle they’ll be driving. Cars with high safety ratings, low repair costs, and anti-theft features generally cost less to insure.
In many cases, trading in a sportier or more expensive car for a modest, reliable vehicle can significantly reduce premiums.
4. Increase the Deductible Carefully
If your student has a solid driving history and the car is used primarily for short trips, you might consider raising your deductible to lower your premium. However, this only makes sense if you’re financially prepared to cover the deductible amount out-of-pocket in the event of an accident.
This strategy is particularly useful for older cars with lower market value, where a higher deductible poses less financial risk.
5. Explore Usage-Based Insurance Programs
Usage-based insurance (UBI) programs use a mobile app or plug-in device to monitor driving habits, such as speed, braking, and mileage. If your student drives safely and infrequently, these programs can lead to substantial savings based on actual behavior rather than statistics.
6. Bundle Policies to Maximize Discounts
If your family already has homeowners, renters, or life insurance through one provider, consider bundling your auto insurance policy with the same company. Multi-policy discounts are often available and can make managing coverage easier.
Bundling can also unlock additional savings, typically ranging from 10 to 25 percent, depending on the provider.
Bonus Tip: Maintain Continuous Coverage
Even if your student won’t be using the car regularly during the semester, it’s important to maintain insurance coverage. A lapse in coverage, even for a short period, can result in higher premiums down the line and may affect your student’s ability to secure affordable insurance after college.
Final Thoughts
Auto insurance is a necessary but often overlooked part of the college transition. By staying informed, adjusting your policy based on your student’s current situation, and asking your provider about available discounts, you can potentially save hundreds—or even thousands—of dollars per year.
It’s a great time to review your policy and make sure it reflects your student’s current needs. With a few smart adjustments, you can reduce your costs while still ensuring your student is covered and protected.
