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The need of car insurance when your child goes to college

by Amy Walters

When your child completes his schooling, it is obvious that you will like to send him to college for higher studies. But, the saddest part is that the parents do not understand the need of buying an affordable auto insurance policy. Your child would like to drive his own car when he goes to college. Being a new driver, it is quite natural that he may meet with an accident while driving. This, in turn, may affect the premium rate that you pay on the policy of your child. Make sure you purchase an affordable car insurance policy for your child so that he can stay protected from the unusual accidents that may take place anytime.

Why should you buy car insurance for your child?
Read on to know why you should buy auto insurance for your child when he goes to college.

·         Owner of the car insures the vehicle

The owner of the car usually thinks to insure his vehicle. Generally, a teenage driver is considered as an additional driver on the car insurance policy of his parents. This is because the child lives with his parents in the same house where the car insurer stays. But, if your child drives your car to college, make sure you inform your auto insurance company about it. This may bring a change in the premium amount that you pay on your policy since the risk factors are considered when your child drives your car.

·         Consider the risks when deciding the premium rates

The insurance companies mainly consider the risks involved when deciding the premium rates. In situations when the parents leave their children on their auto insurance policy when his child goes to college without driving the car of his parents, the premium rate on the policy will get reduced. The insurer then imagines that a young and high-risk driver will not be driving the car quite often. But, if your child drives your car and goes to college, there are high chances that he may meet with an accident. In this case, the parents will have to pay high premium amount on their car insurance policy.

·         No age limit of the child while insuring on the parent’s policy

When purchasing auto insurance, there is no age limit of the child while insuring on the parent’s policy. Till a child stays with his parents and drives the car of either or both of the parents, the child can remain on the auto insurance policy of his parents. But if your child has his own car, then he will have to insure the car under a policy that is owned by him. Unluckily, the young drivers have to pay high rate of premium on their policy because they belong to the group of high-risk drivers.

Make sure that you buy affordable car insurance for your child when he drives car and goes to college. This will prevent you from paying anything from your own pocket in case your child is involved in any accident.

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