Having a teenage driver listed on a policy can be very expensive. Often it can increase the premium as much as twice. That is why people may be eager to drop them off their auto insurance as soon as they can. But, it may be too early to do so if the child still has access to parent’s car and still considered living with them.
Even a child is away most of the time studying in a different town he/she will come back home at school breaks and want to drive parents’ vehicle. That is why it is not wise to drop them from parents’ policies. It may not be allowed if they are still registered living with parents anyway.
Usually, insurers want every driver living with you to be included on your policy. Usually a college student’s residence is still considered to be parents’ address, unless they moved their driving license, vehicle registration, bills and other correspondence to a different address and hardly visiting parents. This may be the case if they are in a different state on the other side of the country. Then, it may be safe to assume that they aren’t living with parents, including for insurance purposes. In that case, you may have no reason to keep them on your policy and this may be accepted by your insurer.
Also, you may be able to exclude a high risk driver in your house with some carriers and in some states. Even then, it may be required that they have their own car and insurance.
However, many insurers offer special rate reductions when a teenager is (at least 100 miles) away at college most of the time. This is only logical since the risks associated with young drivers are reduced with the limited driving they are expected to do now that they spend most of their time at a different town.
Get a few quotes at your next renewal to make the most of such discounts. Insuring a teenage driver can be expensive and therefore any savings you can get could be large enough to switch insurers. So, don’t pass on them if you want to lower your premium.
You should only drop children off your policy when they live home for good. Otherwise, it is best to try to get as much discount as possible and let them be covered. This will help them when they get their own coverage too. Having no insurance history will make it harder for a youngster to find affordable vehicle insurance when the time comes to buy own policy.
Sometimes, it may be safer to keep your children on your policy even after they leave home, especially if they haven’t moved far away and still drive your automobile. You can insure a driver who doesn’t live with you under your policy.
If they are old enough and have good driving records it may not cost much to keep them covered as listed drivers. So, consider the use of vehicle and costs carefully to make the right choice.
Listed drivers and occasional drivers are different and the coverage afforded to them can be different too. Once someone is on your policy there is no doubt that he/she is covered.
If in doubt always choose the safest option.
You shouldn’t give up on essential coverage on the car and its drivers. That isn’t how you reduce your premium. There are many ways of saving money on your vehicle insurance. You should take advantage of them instead.
Remember that shopping around for the cheapest rates can yield enough savings to even offset the cost of insuring a teenager. This is one of the most effective, fastest and easiest way of achieving your goal of lowering your premium. Why not get a few quotes right here and see if there are more competitive insurers for parents with children of driving age.