Car Insurance for College Students: Should They Stay on Your Policy?

As your teen heads off to college, you're likely juggling dorm checklists, tuition payments, and the emotional rollercoaster of a big life change. But there’s one more important detail to tackle: car insurance. Should your college student remain on your auto policy, or is it time for them to buy their own policy? 

Here’s what you need to know to make the smartest—and most cost-effective—decision. 

Should They Stay or Go? 

Whether your student should stay on your policy depends on a few key factors: 

1. Are They Taking a Car to School? 

• Yes – If your child is taking a vehicle with them to college, keeping them on your policy is usually the best option. It’s often more affordable than getting a separate policy, and it ensures continuous coverage. 

• No – If they are leaving the car at home, you may still want to keep them on your policy. Many insurers offer “student away at school” discounts if they attend college over 100 miles from home and don’t regularly drive. 

2. Where Is Their School Located? 

Location matters. Insurance rates vary by state and even by ZIP code, so if their college is in a high-traffic urban area or a state with different minimum coverage requirements, it could impact your premium. In some cases, a separate policy in the college’s state might make more sense. 

3. Ownership of the Car 

Is the car in your name or your student’s name? If it's titled in your name, they’ll likely need to stay on your policy. If your child owns the car outright, they may be required to get their own insurance policy, depending on your state and insurer’s guidelines. 

Tips to Save on College Student Car Insurance 

• Ask About Discounts: Many insurers offer good student discounts for maintaining a GPA of 3.0 or higher. 

• Student Away at School Discount: As mentioned, this applies if they’re over 100 miles away and do not have a car with them. 

• Low Mileage Discounts: If their driving decreases significantly, you could qualify for lower rates. 

• Usage-Based Insurance Programs: Some carriers offer discounts when you enroll in a monitoring app.  You have access to view your student’s driving habits and get a discount too! 

 

The Bottom Line 

In most cases, keeping your college student on your policy is the smartest move — especially if they’re driving your vehicle and depend on your financial support. It provides consistent coverage, potential discounts, and peace of mind. 

Before making any changes, talk to your agent to discuss the best program for your student’s situation. With the right coverage, you can both focus on what matters most: their success and safety.