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Parents, do you know if a family sends their child out-of-state for education, their car insurance premiums will drop considerably?

We live in a major city. We are paying near $8000 on car insurance annually, basically because I am a teen driver. Does anyone know if the out-of-state college education will prove beneficial to lower the car insurance? Assume that the car will not be taken on campus.

By Emeraldkity4 (Emeraldkity4) on Thursday, April 17, 2003 - 11:12 pm: Edit

You can be taken off the policy and added back just for summers, or added back just on certain cars etc. Your agent can give you most accurate info.

By Autodidact (Autodidact) on Thursday, April 17, 2003 - 11:17 pm: Edit

Tenisghs: Do you really want to save the insurance money, or are you looking to underwrite some more of your out-of-state tuition? I'm not asking to be a pain, but truly curious. If, as you said, it is because of your teen status, not the make of car you drive, you could save 100% by selling your car, and taking public transit in Chicago. As a freshman, a car is a bigger hassle than a convenience. Have your mom take you to school, and purchase a metro pass. It will cost you little more than convenience by comparison. Alternately, you could put your car in storage--turn in the plates to the DOT--but then you have storage expenses unless you have an extra garage space. The car would not be legal for the road if you take this option because of mandatory licensing and insurance, so keep this in mind. Personally, I would also recommend checking with Progressive and/or Geico. Good Luck!

By L_Wonder (L_Wonder) on Thursday, April 17, 2003 - 11:18 pm: Edit

They may just have to take you off of the insurance, if you don't have a car in your name. I don't think you being out of state makes a difference to the insurance company; that is no guarantee that you won't come home and drive the car. You have to check though.
Speaking of car issues...
I just bought a new car and I am going to grad school in the fall. Massachusetts has crazy restrictions requiring graduate students to become a resident of the state and switch their car, license and insurance over to that state. Can we say expensive? So..my little prizm is staying in my mom's driveway Grad students beware!

By Dadster (Dadster) on Thursday, April 17, 2003 - 11:19 pm: Edit

Yes, you'll see a big drop. It might be the one money-saving part about attending college!

By Lamw (Lamw) on Thursday, April 17, 2003 - 11:32 pm: Edit

AS I understand it you have to list all licensed drivers in your household and your rates are for all of them.
If you don't want to pay insurance for someone they either have to totally move out (not just go away to college for part of the year) or hand in their license. Some insurance companies do reduce the college students portion of the insurance if they go to a college a certain number of miles away from home that varies from company to company. Our insurance will charge him the rate they charge married college students which is apparently cheaper. Big of them. Check with your company.

By Emeraldkity4 (Emeraldkity4) on Thursday, April 17, 2003 - 11:40 pm: Edit

I think it really depends on the company/
To save money I am the only one listed on "my"car and my husband is the only listed on "his" car.
Our daughter doesn't have a car, she doesn't need one in college, and for the summer we can add her back on .

By Calmom (Calmom) on Friday, April 18, 2003 - 06:37 am: Edit

When a kid attends college out of state (without a car), he can be dropped from the insurance, and yes, this will save a bundle. The practices of individual insurance companies vary, but basically if the kid is no longer living at home and is no longer driving, he doesn't need to be on the family policy.

The kid needs to be added back on the policy if he is home for more than 30 days (such as on summer vacation). Alternatively - when the kid comes home to visit, the uninsured kid can simply refrain from driving the family car.

The parents need to discuss all this with the kid, so that the kid is aware that he doesn't have insurance if he drives some other kid's car at college, and also so the kid is aware of issues involved if he decides to buy his own car while at college.

By Tenisghs (Tenisghs) on Friday, April 18, 2003 - 08:27 am: Edit

We have only two people. But our insurance is $3700 a month (Yup, red-lining...). From my knowledge, you can't take out a loan on auto insurance (lol). Come up wit the money or you just don't have any proof of insurance on the road (which is illegal in the state of Michigan.)

Michigan is 40 minutes away from home. Will it be easy to convince the insurance company to lower the premium even though I live close to home? Michigan is a state that does not have "adequate" mass transit (we don't even have a regional subway system.) so it's not difficult to have access to a car. Some insurance companies only kick in the "Out-of-State" fee if you live at least 100 miles from home.

By Emeraldkity4 (Emeraldkity4) on Friday, April 18, 2003 - 10:25 am: Edit

We also have only the minimum ins required by the state, I'm sure the state minimum is less than $3700 a month. There is no %$#@way we could afford almost $4000 a month for car insurance that would be 100% of our income! EEK!

By Emeraldkity4 (Emeraldkity4) on Friday, April 18, 2003 - 10:39 am: Edit

I just scrolled back up so is it?
We live in a major city. We are paying near $8000 on car insurance annually,

OR is it?

ut our insurance is $3700 a month

Michigan actually has lower insurance requirements than my state ( Washington) so I bet you can get your coverage reduced.

By Tsdad (Tsdad) on Friday, April 18, 2003 - 11:20 am: Edit

I checked with my Nationwide agent this morning based on this thread. He wasn't totally sure, but he believed that if the child was going more than 500 miles away for college then they could be dropped during the school year and re-instated during vacations.

He was going to check and call me back to verify it.

By Autodidact (Autodidact) on Friday, April 18, 2003 - 11:23 am: Edit

Out of curiosity what make and model cars are you driving for that outrageous fee? I can identify with the lack of a transit system, I was thinking in terms of if you had decided to go to Northwestern afterall. You can lower your insurance by raising your deductible. Personally, I'd recommend, as I said above, shopping around for a new agent. Your present one must be sending several kids through college--at your expense. Bad agent. Seriously, you and your mom are taking the beating here, and unless you're one point from losing both licenses, you need a new agent.

By Tenisghs (Tenisghs) on Friday, April 18, 2003 - 01:39 pm: Edit

$3700 (6 months) + $3700 (6 months) = $7400. That is almost $8000 per year. Sorry for the confusion.

My insurance is on my mother's 1996 Chrsyler. We have a 2001 Mitusibhi sedan the insurance company insist is "sporty." WE purchased the used 2001 Mitsubishi for only $13,000. Our insurance was fine until I received my license, and the premiums went through the roof.

By Northstarmom (Northstarmom) on Friday, April 18, 2003 - 02:45 pm: Edit

I don't consider $13 k a small amount of money to pay for a car. I am surprised that a parent planning on sending a child to college soon didn't buy a cheaper car for the child. I can't think of any reason why a kid in h.s. would have needed a $13 k car. I am sure there were cheaper, safe options.

By 1tcm (1tcm) on Friday, April 18, 2003 - 02:57 pm: Edit

My 18 yr. old son drives a 2002 pickup 4x4 and his insurance through State Farm (notoriously high) is only 1600 a year. And premiums for boys usually run higher than girls. We've got 3 vehicles we pay on....and all THREE don't cost that much. Granted he gets the good student discount, but something just isn't right about all this?? I'd either be looking for a new insurance company, or I'd see if there is a misprint on your premium bill.....

By Tenisghs (Tenisghs) on Friday, April 18, 2003 - 03:18 pm: Edit

I don't drive the Mitsubishi. I drive the Chrysler, Northstar.

By Emeraldkity4 (Emeraldkity4) on Friday, April 18, 2003 - 03:29 pm: Edit

Doesn't that have a v-8 engine? That may be what is bringing your insurance up

By Northstarmom (Northstarmom) on Friday, April 18, 2003 - 03:43 pm: Edit

On your web page, you say that the silver 2001 Mitsubishi galant is yours. Which is the truth?

By Tenisghs (Tenisghs) on Friday, April 18, 2003 - 05:08 pm: Edit

A 2001 Mitsubishi sounds better than a 1996 Chrysler. Both cars are my mother and she can drive whichever car she wants. She prefers the Mitsubishi. There are times that I do drive the car. The bottom line is my insurance is covered on the 1996, not the 2001. I think insurance will cost more if we put my name on the 2001.

By Tenisghs (Tenisghs) on Friday, April 18, 2003 - 05:09 pm: Edit

I wish we were only $1600 a year...

By L_Wonder (L_Wonder) on Friday, April 18, 2003 - 10:45 pm: Edit

Goodness-I cry because I pay 90 bucks a month for insurance. I had no idea...Go public transportation!

By Calmom (Calmom) on Saturday, April 19, 2003 - 01:36 am: Edit

Tenisghs, your car insurance situation is really untenable. My advice: don't take a car to college. Sell the Chrysler at the end of the summer - your mom only needs one car without you. Your mom will save by taking you off the insurance, plus have whatever money she gets from selling the Chrysler -- this should help considerably with your finances.

You really don't need a car at any college if you are living on campus.

By Boysmom (Boysmom) on Saturday, April 19, 2003 - 08:47 am: Edit

Sounds like this can't be all true. We live in MI also, have five cars with three young male drivers and don't pay that much in insurance. Of course, they are all good drivers and no points for any of us. As for the insurance company lowering your premiums when you go away to school, it probably won't happen if you go to UMich. My son goes there and it is further to our house than yours and they say it's not far enough. You won't need a car at school, so I'd recommend what the other people do: sell the car and take that money and what you save in premiums to afford school.

By Tenisghs (Tenisghs) on Saturday, April 19, 2003 - 10:08 am: Edit

Boysmom, I live in Detroit. That is why the insurance is so ridiculously high. I am an honors student, no tickets or accidents whatsoever. It's red-lining. And for the last time, people, I never said anything about taking a car to campus. I just want to know if I go to school out-of-state will my mother's car insurance decrease. She will happily like to know this information. I highly doubt it will decrease much if I attend Michigan.

By Northstarmom (Northstarmom) on Saturday, April 19, 2003 - 01:13 pm: Edit

your mom can learn the insurance info by calling her agent. That's the most accurate and efficient way to answer your question.

By Calmom (Calmom) on Saturday, April 19, 2003 - 09:25 pm: Edit

Tenisghs, your mom's rates will decrease if she takes you OFF the policy. Some insurance companies will let her keep you on with a rate reduction, but I think with most it is simply a matter of her telling the company that you are no longer a member of the household and are no longer driving any car that she owns.

I bring this up because I took my son off the policy, and when he came home last summer, I DIDN'T LET HIM DRIVE. (I would have put him back on if he had been able to find a job that would have made it worthwhile - that is, he needed to earn more money than the cost of insurance - but it didn't happen.)

I'm just raising this to make sure that you understand that you might have to also do without a car when you come back for visits. Of course your mom can add you back on the policy, but with the rates you described, you would probably be in the same situation as my son. (It's not really a big problem - my son has friends who have cars, and other friends who don't - so basically the kids with cars are used to giving rides to the others, and the others chip in for gas when they can -- this is true both at college and at home).

By Emeraldkity4 (Emeraldkity4) on Saturday, April 19, 2003 - 09:32 pm: Edit

Here is an article on car insurance from a university in Detroit.
http://www.southend.wayne.edu/days/2003/February/2272003/news/auto/auto.html

By Mamamiles (Mamamiles) on Saturday, April 19, 2003 - 09:35 pm: Edit

Tenisghs, I believe your insurance rates depend on where the car is primarily garaged. If the car is in Detroit, you pay Detroit rates; if the car is in Bloomington, Indiana, you pay Bloomington, Indiana rates. There is a difference in rates, but probably not as much as you think. Your rates are high because you are a teenage driver. You yourself said that insurance was fine until you got your license. The best way to find out if you can get a rate adjustment when you go off to college is to call your insurance agent!

By Tenisghs (Tenisghs) on Sunday, April 20, 2003 - 05:44 am: Edit

Ok everyone. Thanks so much!