It is always advisable to look at your coverage at least once a year and when there are significant changes in your circumstances in terms of drivers, vehicles, and addresses. These are the three most important factors taken into account when calculating premiums. In the same way that you end up paying a lot more when your child gets his/her license, you are entitled to expect the opposite when they move out.
So, you should not be shy about these things and you shouldn’t think that you are being safer by leaving things as they are for the time being. For the purpose of car insurance child not living at home is an acceptable reason to go back to your provider and re-negotiate the premium. If the youngster has moved out completely and is unlikely to drive the automobile you can just drop him/her off the coverage and save a lot of money.
How the Residency Work?
However, it isn’t always that straightforward with kids and they don’t cut the cord easily. There may be a period where they are coming and going. It is worth looking at the situation from the usage point of view. This makes things simpler and easier to explain to your provider.
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Also, there is this period in college that needs to be handled delicately. For example, can you drop them off your auto insurance completely when they are off to college? The answer is usually no because they come back for the breaks and still use the vehicle. However, this may still give you a reason to ask for a large discount because the child is only using it occasionally. This will reduce risks significantly that you are totally being fair when you ask for the same for the premium.
Furthermore, there is a case of parents’ insuring a teenager’s car when he/she is at college. Usually, parents aren’t allowed to insure it or take advantage of multi-vehicle policies when the youngster’s address is different. They are not allowed to get the savings afforded by being associated with older and more experienced motorists.
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However, they are still considered living at home when they are at college and therefore, there isn’t a problem with such an arrangement. On the contrary, you can still ask for large discounts because again the vehicle is sitting at home when the driver is away. You have a better case of getting much cheaper rates when the school is in another state or far away.
Child Needs Own Automobile Insurance
When they have their own vehicle and coverage and living with parents they can still benefit from their presence in the household in several ways. Their car can even be insured as the second vehicle under parents’ policies. They can get discounts separately or with multi-car policies as well. All these have to end when the teenager moves out and establishes an independent living.
Parents can still keep the child on their policies and vice versa but the address registered has to be recorded properly and separately. This is a significant point and it isn’t worth taking a chance. They aren’t going to investigate things when there is no issue. But they can dig deep into your life when there is a large claim.
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Whatever the new arrangement you should always discuss this with the current carrier. Then, you go out and get a few other auto insurance quotes to compare with the renewal terms and each other. Then, the position will get clearer and you will be able to have plenty of information to help you make a better decision. It is a simple process and can save you a lot of money.
