Car teens and autumn dorm parking: Essential information before college term begins regarding auto insurance
As thousands of students prepare to head to college this fall, Mercury Insurance is reminding them and their parents about the unique insurance considerations that come with driving and parking on or around campus.
According to Justin Yoshizawa, Mercury's Director of State Product Management, college brings new responsibilities, especially regarding driving and parking. "It's important for students and parents to be aware of these considerations to ensure they stay protected during the college transition period," Yoshizawa said.
One key area to focus on is policy updates and coverage. Parents typically keep their college student on the family auto insurance policy if the student drives regularly, either commuting to school or while at college, because family plans generally offer better rates than separate policies. However, it is important to notify the insurance provider when the student starts college and update the garaging address if the vehicle is parked at or near campus, as this can affect rates. Removing the student from the policy while they still need coverage can lead to lapses and higher premiums later.
Driving less during the school year—such as living on campus, walking to classes, using public transportation, or leaving the car at home—can also reduce insurance costs through low mileage discounts or usage-based insurance policies that charge based on miles driven. Families should provide accurate mileage estimates to the insurer to qualify for these discounts.
Students should also be aware of local parking rules on or near campus. Violation tickets or increased risk of vandalism or theft can affect insurance claims and liability. While not detailed extensively in the search results, local agents (especially in college towns such as Bryan and College Station) can advise on how these factors affect coverage and recommend suitable options like comprehensive coverage for theft or weather damage.
Bundling auto insurance with other policies (like renters or homeowners insurance) can lead to discounts and savings. Additionally, students maintaining good academic performance may qualify for discounts. Multi-driver and multi-vehicle discounts on family policies also tend to reduce overall costs compared to individual policies.
Permissive use coverage usually allows occasional borrowing of the student’s car by friends or roommates, but regular users should be added to the policy. For students attending school out of state, they can usually remain on the family policy if the permanent address is still their parents’ home, but the insurer must be informed about the car’s primary location. International students need to provide valid driver’s licenses and visa documentation to obtain coverage.
Mercury Insurance also advises families to be aware of common mistakes when it comes to insuring a vehicle used on or around campus. Ignoring posted parking signs could result in tickets, towing, or impound fees. Additionally, it's important to remember to lock cars and remove valuables to secure vehicles in dorm and campus parking lots.
By following these tips, students and parents can ensure they have the right coverage and protections in place as they navigate the transition to college life. For more information, visit Mercury Insurance's website or contact a local agent.
[1] https://www.mercuryinsurance.com/auto/student-car-insurance [2] https://www.mercuryinsurance.com/auto/discounts [3] https://www.mercuryinsurance.com/auto/student-car-insurance/garaging-address [4] https://www.mercuryinsurance.com/renters-insurance/discounts [5] https://www.mercuryinsurance.com/auto/student-car-insurance/permissive-use-coverage
- For effective personal-finance management and to ensure proper education-and-self-development, students and parents must consider the unique insurance considerations associated with driving and parking on or around campus, especially when it comes to policy updates, coverage, and local parking rules.
- To further minimize expenses and optimize coverage for technology-based needs, students can explore low mileage discounts or usage-based insurance policies, bundle auto insurance with other policies, and maintain good academic performance to qualify for potential discounts, thus promoting a more financially responsible college experience.
