After years of intensive parenting, you have a child leaving for college. Although you can almost see the time when your expenses will lessen, for now, you are probably trying to reduce your financial commitments. Now that your child is getting older, how long should you keep them on your auto insurance policy?
College
If your child goes to college and takes one of your vehicles, you need to keep them on your policy. If your child goes to school without a car, you may think you can safely drop them from your insurance. Unfortunately, that plan can backfire. If your child comes home for a weekend and is involved in a collision, you could be on the hook for some major expenses. Also, keeping your child on your policy protects them while they are driving a friend's car even when they are at school.
Fortunately, if you child goes to school without a car, your premiums are likely to drop simply because they will not be driving your vehicle as much. However, if your child takes your car to school, your rates could rise, particularly if they are going to school in a traffic-congested area. Since liability insurance limits vary according to state, you need to know what the standards are where your child is moving. Only an in-depth consultation with your insurance agent can tell you what your premium will be.
Living at Home
Once your child graduates, you may still need to keep them covered. If they do not have their own vehicle or insurance, use your home as their legal address, and actually live with your part-time, you need to keep your adult children on your policy to protect both them and you. Doing so will also keep them covered if they are riding in someone else's car and are injured. They will be considered eligible for your medical expense coverage as well as your uninsured or underinsured motorist coverage as long as they are on your policy.
Sending your children off to college is a proud moment. They are becoming adults, and, in the not-too-distant future, will become independent. Until that time comes, you may need to keep them on your auto insurance to protect yourself as well as them. As long as they are driving your vehicles and are at college or living with you, their names need to be on your auto insurance policy.
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