QUICK ANSWER
Parents can save money on car insurance by applying for a “student away at school” discount if their child attends college more than 100 miles away without a car. Keeping the student on the policy ensures they are covered during breaks, often at a reduced rate due to lower mileage. Additionally, maintaining a “B” average or higher can qualify the student for a good student discount, further lowering premiums.
As Featured in
Sending a child to university is a massive milestone. It is full of excitement but also high costs. One area often overlooked for savings is your auto insurance policy. CheapInsurance.com helps parents navigate the tricky math of insuring a college-aged driver without overpaying.
Whether the student takes a car to campus or leaves it in your driveway, the premium will change. Knowing how to play these different scenarios is the secret to keeping your family budget intact.
Option One: The Car Stays at Home
If your student does not need a vehicle on campus, you are in a great position to save. Leaving the car behind is a smart financial move. Not only do you avoid the high cost of a campus parking permit, but your insurance company should also lower your bill.
- Report the Mileage Drop: Tell your insurer the car is sitting idle. Lower mileage equals lower risk. That usually means a lower premium.
- Resident Student Discount: Most carriers offer a break if the student is over 100 miles away without a car. It is an easy win for your wallet.
- Reclassify the Driver: Ask about moving your child to “occasional driver” status. They stay covered for visits and breaks, but you stop paying the “primary driver” price.
According to Fausto Bucheli Jr, a licensed insurance broker and owner of CheapInsurance.com, the math is clear.
“When drivers compare quotes, they are not just browsing, they are activating competition. Based on current savings data from leading comparison platforms, the average driver could save around $774 dollars per year simply by shopping smarter. That is real money staying in your pocket.”
CheapInsurance.com by the Numbers
Data Analysis: Annual Savings from Car Insurance Comparison Sites
The Commuter Student Reality
Living at home and attending a local college is different. These students do not get the away discount, but there are still ways to protect your rates.
Consistency matters, by keeping a student on your policy prevents a “coverage gap” that can haunt them later. Plus, if they keep a B average or better, you can likely snag a good student discount. These credits are powerful tools for neutralizing the high cost of insuring younger drivers.
Taking a Vehicle to Campus
This is usually the most expensive route. Still, you have leverage.
The location of the school changes everything. An urban campus in a high-traffic area will always cost more than a school in a quiet, rural town. You also need to look at the car itself. For an older vehicle that you own outright, liability-only coverage is a solid way to cut costs. For newer cars, you likely need comprehensive and collision to protect that investment from theft or campus accidents.
Essential Protection Levels
Saving money is great, but don’t cut corners on the actual protection. A solid policy should always include:
- Liability: This is the big one. It covers damage and injuries your student might cause to others.
- Collision: This pays for repairs to your student’s car if they hit something.
- Comprehensive: This covers the “random” stuff – theft, vandalism, or a storm.
The Bottom Line for Parents
College life is fluid. A student who starts at home might move to a dorm by sophomore year. Keep a constant dialogue with your insurance agent. Compare car insurance quotes annually. This proactive approach ensures you are never paying a dollar more than necessary for the protection your family needs.
Founded in California in 1974 as an insurance agency, CheapInsurance.com has spent decades helping people find affordable coverage. Over time, we became one of the first brokerages to go online in 1998, making insurance shopping faster and easier.
Our mission has always been simple: insurance is a basic necessity, not a luxury. That’s why our technology quickly scans the marketplace in seconds, compares rates, and uncovers discounts that might otherwise be missed. In addition, we explain coverage in clear, simple terms.
As a result, people get real options and can avoid overpaying for features they do not need, while still maintaining strong, reliable protection.
Frequently Asked Questions: College Students and Car Insurance Savings
What is the 'Student Away at School' discount?
The 'Student Away at School' discount applies when a dependent driver lives at school more than 100 miles away from the primary residence and does not take a vehicle with them. Because the student is driving the insured car much less frequently, the insurer lowers the risk profile, resulting in a premium reduction.
Should I remove my college student from my policy completely?
It is generally not recommended if the student still occasionally drives your car when home for holidays or breaks. If you remove them and they drive your car, any accident could lead to a claim denial. Instead, utilize the 'Student Away at School' or 'Excluded Driver' options, which keep coverage valid while away.
Can my college student qualify for the Good Student Discount?
Yes, many insurers extend the Good Student Discount to college students, usually requiring them to maintain a B average (3.0 GPA) or higher. Submitting a copy of their latest transcript can often secure a 5% to 25% discount, provided they meet the insurer’s specific requirements.
By
Published
Reviewed By
