It is an exciting time for students and parents when their kids go off to college. Currently, there are over 20 million college students in the country. However, one concern becomes the car insurance rates that they will pay once they leave home. For many parents, it is a concern about making sure that they have the proper car insurance for college students.
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Percentage of Students who Go Out of State to Attend College:
Students attending college out of their home state is a trend that has been going on for many decades. The decision to go out of state has many different reasons starting with favorable tuition rates, desirable colleges and universities, location, and institutions that offer specific majors not found locally.
According to the latest statistics published, the overall percentage of students attending out of state public colleges and universities is 13.7%. It should be noted that private institutions are not subject to the same accounting records as public institutions. Of the institutions with the highest percentage of out of state students, the University of Vermont is currently the highest with 61% of its student body being from out of state.
In terms of raw numbers, the University of Alabama ranks the highest with over 3,700 students being from outside the state.
Another study from 2014 showed that students from the District of Columbia, Maryland, and Minnesota are the most likely to attend out of state colleges and universities while students in Arkansas, Utah, and West Virginia are the most likely to stay within their state. Because of the location and small size, the District of Columbia has the most coming in and going out from its location.
Naturally, separate states like Alaska and Hawaii tend to keep more students in-state while the smaller states in New England are the most likely to have out of state students. It explains why California State University at San Bernardino has the lowest amount of out of state students given its relative isolation. In addition, the available information shows that states with higher non-resident fees are less likely to have out of state students.
For those who are attending colleges and universities outside their state, one important issue is maintaining coverage for your vehicle. This is where having the right car insurance for college students out of state comes into play.
Let the Insurance Company Know
For the student who is ready to set off for college at a location where they will live on or near campus away from home, it is important that you notify your insurance company even if you are leaving your car behind. This is because your insurance provider will need to know the primary location of the vehicle, you might be required to obtain a new policy, and you or your parents may be eligible for a discount depending on whose policy you are using to cover the vehicle.
How Long Can Students Use Parent’s Policy?
You can stay on your parents’ policy even if you are going to a college on the other side of the country depending on the following conditions.
- Your parents own the title to the vehicle you drive
- You still live at your parents’ home
- Your parents’ address is still your primary address
If these conditions apply, you can stay on your parents’ policy during the time that you are attending college. This means that you will pay lower rates and have continuous coverage. Plus, if you do not take your vehicle to college, you are still covered to drive a friend’s car, as a passenger or pedestrian depending on the type of insurance that you receive.
Car Insurance Discount for College Students
Good Student Discount: If you maintain a high-grade point average, you can enjoy a substantial discount on your car insurance. The percentage varies depending on the carrier, but you should get a 5% to 10% discount by maintaining a good grade point average. A “B” or 3.0 average is generally considered the minimum, but you must check with your insurance company to see what is the base level. So keeping your grades up means getting a discount on your insurance rates.
Occasional Driver Discount: If you leave your vehicle behind and only drive it “occasionally,” you can save considerable money on premiums.
Resident Student Discount: If you live on campus that is over 100 miles away and do not take your vehicle, this can be a substantial discount. This type of insurance is for the student or parents with a child attending college. If the child is not using their vehicle while attending college at least 100 miles away, then you may enjoy a discount of up to 35% or more depending on the insurance company. The car will need to be stored during this time, preferably in a garage.
The discount reflects the fact that the vehicle is not in used while still maintaining the insurance coverage. The college students out of state can ask the insurance provider for more genuine information.
You can also lower your premiums by maintaining a high deductible and taking an approved driving safety course. This means that you can combine discounts to save a considerable amount of money on your car insurance.
Check out all the discount and saving options for auto insurance.
Purchasing Your Own Policy
For those who have college student insurance plans that rely on paying for their own policy, keep in mind that your rates are likely to go up significantly because of your age, gender, accidental history, and lack of a long-term driving record. However, there are ways that you can save money when paying for your own policy.
- Higher Deductible
- Using State Minimum Insurance
- Getting College Student Discount
- Taking a Qualified Driving Course
- Driving an Older Vehicle
For the out of state college students buying their own policies, it pays to search around for the best quote either online or using the services of an independent insurance agent. While staying on your parents’ policy will most likely save you more money, buying your own can be affordable if you choose the right insurance.