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Men of Principle -- College-Age Drivers |
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College-Age Drivers Should Stay on Their Parents’ Auto Insurance Policy
Amid all the endless questions and paper work snarls with which the parent of a college bound student must cope, the matter of correctly handling auto insurance can get lost in the mix. Worse yet, a poor decision can be made that will effect both the parents and the college age driver. Even if a college student will not have access to an automobile at school, experts advise parents to continue to carry their son or daughter on their own automotive policy. Issues of both economy and liability are involved.
Initially, by continuing to carry the student on the family policy, there is a potential premium advantage for the parent. Two aspects of premium “math” used by insurers are number of miles driven to and from work and use of the car for pleasure or recreation. In general, when working out insurance quotes, companies assume that a college student living more than 100 miles from home with no vehicle to be a low risk member of a family policy.
Parents should also consider matters of liability. Typically parents claim college students as dependent for income taxes purposes until the child earns an independent living and can assume their own tax burden. This establishes a legal precedent of overall responsibility for the college age child’s financial and legal matters. Consequently, if the college student is involved in an accident driving some one else’s car while away at school the parents are likely to be the one’s sued for damages.
Finally, parents should consider the health and welfare of other drivers and look to the long-term in regard to existing coverage as it will relate to a child’s future insurance premiums. If the child has not been previously insured, even as one member of a family policy, they’ll face higher premiums when they get their own policy because they will lack insurance “experience.” By having been covered by the parental policy, however, the child becomes a known entity for insurance purposes and will be accorded lower insurance rates.
While many parents feel that the beginning of college is the time to start cutting the apron strings and urging their children to become more independent, this strategy in terms of automotive insurance is not the best. With the attendant issues of liability and cost of premiums, it’s much wiser for parents to continue to carry their college age children on their own insurance policy to cover all the legal bases and to put the child in a better position to assume responsibility for their own insurance coverage once they are gainfully employed and can routinely meet that financial commitment.
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