Car insurance is expensive! But it can get worse when you have a child that lives away from home but is under your insurance, too. The cost of insuring this car would cut into the budget that you could have used for a nice vacation, appliance, or your savings account!
The good news is that there are a lot of ways to save money on your child’s car insurance even when they are staying away from home.
Use an old car.
Why are teenagers charged more for insurance? Because supposedly, they drive recklessly and are more prone to accidents. More accidents mean more claims to the insurance company and lesser profit for them. Sometimes, adding a teenager to your insurance doubles the amount you need to pay.
Give your child an older car. They may raise their eye brows at you, but you can save some money because you can drop some coverage on an older car. Besides, this could give you an excuse to buy the nicer, newer car you’ve been dreaming of.
Add them to insurance.
Family insurance policies for vehicles are way cheaper than the individual ones. Thus, by adding your child to this policy would help you save quite a lot of money. However, this requires your child to be a dependent. This dependence can be proved if:
- The child’s car should be owned by the parents since the insurance policy is theirs as well;
- The child should live part-time in the parent’s house, i.e., lives there during holidays, breaks, etc.
If you fulfill these two criteria, and any other requirements specific to your insurance company, you can save a lot of money on this extra car.
Use discounts for students.
While individual insurance premiums can be pretty costly, the amount can be reduced if you use special discounts made for students.
For example, there is a discount popularly given by insurance companies called ‘the good student discount’. Here, if your child is a talented kid with good performance in academia, the insurance company will provide you with some discounts.
Talk to your agent to find out about more such discounts applicable to your particular scenario.
Whatever you do, make sure to have a good vehicular insurance for your child whether they are staying with or without you. Plus if you plan to take this responsibility, also be ready to help them financially with the insurance if required.