As colleges are gearing up to begin and many students are headed away to school, have you notified your auto insurance company or insurance agent ? If so, you may have notice a reduction in your auto insurance premium. Many insurance companies will lower your premium if your child is going to school more than 100 miles away from home. However, there are a couple of different scenarios that can happen when your child is away at college. Your child may or may not be covered under your auto insurance policy, depending on how the insurance company handled the change. The insurance company may have kept your child on your policy as a covered driver or may have listed your child as an excluded driver. If your child is listed as an excluded driver on your policy, he or she is not covered under your auto insurance policy to drive your vehicle.
Chances are that when your child comes home for a vacation, he or she will want to drive your vehicle. It is important that you contact your insurance agent to make sure that your child is actually covered under your policy. If your child is not covered and gets in an accident, you may be held financially liable for the damages.
If you discover that your child is not covered under your auto insurance policy, your insurance agent can make the necessary changes. Since your child spends the majority of his or her time away from home, the auto insurance company will probably give you a discounted rate to compensate for the fact that your child will not be driving the car often. Some insurance companies will allow your child to be rated as a guest driver, without increasing your premium.
Even if you discover that your premium will increase by adding your child to your policy, the reduction in liability risks makes up for the increase in your auto insurance rates. There is another advantage to including your child on your policy as well, and that is liability protection while your child is away at school. If your child borrows another person’s vehicle while away at college and is not covered under the vehicle owner’s insurance policy, you may be held liable for any damages that occur in the event of an accident. Remember, your college student is still considered your dependent, which means you are financially liable for his or her actions.
Have peace of mind with the right Dallas auto insurance coverage for your college student. Give Red Gorman Insurance a call at 214-374-9997 to get the best rates and coverage for your situation.