Should I Take My College Student Off My Auto Insurance Policy?

Reviewed by licensed agent

Updated Jul 14, 2023

Parents with young adults living at home need to be understandably cautious with auto insurance matters, especially given how expensive coverage can be for younger drivers.

But once your child leaves for college, it's not always clear whether or not to keep them on your auto insurance policy. That's because the answer depends on where your child ends up residing and how much they'll be using the car, among other things.

Keep your student on your policy if:

They will be driving regularly at college or commuting to a school nearby

Pros and cons:

Covered when the student wants or needs to drive
Extra coverage in case of an accident as a passenger
Student-specific discount can be earned for the whole family
Continuous insurance coverage history

Higher cost of having a student under age 25 on your policy

Take your student off your policy if:

They are not bringing a car with them to school and don't plan to drive when at home during breaks.

Pros and cons:

Savings of possibly more than $1,000 a year
Possible lower costs if your child lives in a lower-rate ZIP code at college

May lack coverage when student drives an uninsured car or a friend's car without consent

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When to take your student off your policy

Take your student off your policy if they are going away to college and are not planning to take an automobile with them. This can possibly decrease your rates by more than $1,000 annually, depending on your student's age and driving record, says Ron Hettler, president of Hettler Insurance Agency in Lubbock, Texas.

"However, be aware that many carriers will not allow you to even temporarily exclude a licensed driver in your household who is already listed on the policy," he says.

If your student is allowed to be excluded from the policy:

Remember to contact your insurer to add your child back to the policy prior to coming home during winter or summer breaks if they plan to drive while home.
Discourage your child from driving a friend's car while away at school. The friend's insurance should provide primary coverage for your student if they are involved in an accident or moving violation while a passenger, but the friend's auto policy may lack adequate coverage to safeguard your student (and anyone else involved) should an accident occur while your child is driving the vehicle.

Alternative option: away-at-school discount

If you're on the fence about whether to remove your college student from your policy, look for an insurance company that offers an away-at-school discount. While your student is at college and not driving your car, you could save up to 25% on your bill. And you don't need to worry about manually adding them back to your policy when they return.

Students should also get their own, separate policy if they permanently live elsewhere (not in a parent's home), particularly if they have a vehicle titled in their own name, says Kristofer Kirchen, president of Advanced Insurance Managers, LLC, in Tampa, FL.

It's free, simple and secure.

When to keep your student on your policy

Keep your student on your policy if they plan to bring a vehicle to college and use it, if they are commuting to school or if they’re attending a nearby school that allows them to come home often and use the car.

In addition, whether your child plans to drive while at college or not, many experts recommend keeping them active and listed on your policy. Here’s why.

(A) The student will be covered if/when they:

Return home and need to drive
Drive a friend's vehicle while away
Are forced to drive due to an emergency
Are struck by a car while on foot, on a bike or as a passenger in another person's vehicle

(B) The student will earn family premium deductions (if eligible), including:

A good-student insurance discount (typically, a "B" average or better is required). "This option can possibly save you a couple hundred bucks or more," says Bob Passmore, department vice president of personal lines for the American Property Casualty Insurance Association.
A distant-student discount (in general, requires attending school full-time at least 100 miles away and being under 23 years old), which can save families hundreds of dollars or more, Passmore says.

Last but not least, by keeping them on your policy, your child will be building a record of uninterrupted insurance coverage, which can possibly reduce premiums when it's time for them to obtain their own policy. In fact, some insurers will reject applicants with no history of continuous coverage.

If your student remains on your policy, here are a few things you need to keep in mind:

Inform your insurer of your child's school status, but indicate that your home is their primary address. Students who attend college full-time, even out of state, can typically retain coverage on their parent's policy as long as the parent's residence is their primary address.
Ask your insurer if they can assign your child to the least valuable vehicle you own, which can help decrease premiums.
Stress to your student the importance of safe and responsible driving habits, including abiding by rules outlined in the policy, not driving while texting or under the influence of alcohol or drugs and not lending the car to a friend.

Bottom line: To determine which option is best for you and your child, consult your insurance representative before your student moves away and then review your coverage choices carefully.

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