Tips for insuring students studying away from home
- Life events
- Auto insurance
- Homeowners insurance
- Renters insurance
- When a student moves away for school, it's important to notify your insurance broker right away as it can affect your auto insurance rates and coverage.
- Your child's belongings like laptops and phones may not be automatically covered, so checking whether your home insurance extends to them or getting tenant insurance is a smart move.
- Discounts like the student-away-from-home discount, good grades discount and driver's ed savings can help offset the cost of keeping your child insured while they're away.
- An umbrella insurance policy is an affordable way to get extra peace of mind by covering liability gaps that standard home and auto policies may leave behind.
It probably seems like yesterday when you took your child to school for the first time.
Now, they’re leaving the nest to study at college or university. Where did the time go?
As a parent there’s lots to take care of as you help them get ready to move. One of the things that should be on your to-do list is insurance.
Depending on whether they will live in residence or off-campus, there are various ways to protect your child, and it's important to advise your insurance broker of the changes.
How it can affect your auto insurance
Typically, many students are considered an occasional driver on their parent’s policy. If they own their own vehicle or take one of the family cars to where they will be studying, they would be rated as a principal driver in the new postal code of the area they’ve moving to. That and their driving record will dictate the rates.
In all instances, your insurance broker must be advised of the change of address, including if it is out of province.
If they are studying in the U.S., having an Ontario auto insurance policy means you’re still covered while travelling here and the U.S. – for a period of less than six months. Your child will need to prove they are still a resident of Ontario and, as such, qualify for Ontario auto insurance. As a result, the vehicle should be brought back periodically during reading weeks, breaks or other visits. Keep receipts when getting an oil or tire change while back home so can show your insurer proof of being in the province.
With most insurers, having the car out-of-province for longer than six consecutive months will void the terms of the policy. You may be required to find a new insurance company, such as one that allows more than six months of consecutive travel. Consult your broker regarding companies that offer this.
Ways to save on premiums
There are some discounts that may help you save on vehicle insurance:
- Student away from home: If your child is attending college or university away from home, they’ll likely be driving less. Most insurers will offer a discount for a child you have listed on your policy as an occasional driver.
- Good grades: Many insurers offer a small discount for students who work hard and get good grades.
- Driver’s Ed training: If your child has taken an approved driver’s training course while learning to drive, they can qualify for additional savings.
Also, you may get a multi-vehicle discount if the vehicle they are taking to school is in your name and listed on your existing auto insurance policy.