If you’re the parent of a student who’s attending college at least 100 miles from home, and who won’t be bringing a car along, call your insurance agent pronto. You may be due for a break on your auto policy.
Most insurers will either recalculate your premiums or give you a discount, says Jeanne Salvatore, chief communications officer at the Insurance Information Institute, an industry organization. Allstate, for example, says the discount can be as high as 30%.
Even if your student will be taking a car to college, you might still save, depending on where that college is. Insurers look at where a car “resides” in determining premiums, Salvatore notes.
So, if the car will be moving from a busy city to a quiet college town, you could see a reduction in your premium.
On the other hand, if the school is in what’s judged to be a riskier area, your premium could rise.
Either way, you’ll want to contact your insurance agent, just to make sure your car and student are properly covered.