Is Your College Kid Still Covered When They Drive at School?

By Toby Hartman, MM Insurance Associates

A story out of Milwaukee stopped me this week. After a crash near Marquette that took the lives of two young men, an insurance company went to court and asked a judge to decide whether its policies cover the student who was driving. I am not going to guess how that case comes out, and my heart goes out to every family involved. But as a dad and as an agent, it made me think about a question I get every fall: when my kid is away at school, are they still covered?

The honest answer is that it depends, and the details matter more than most parents realize.

Who owns the car, and where does it live?

If the car is in your name and on your policy, your coverage usually follows it to campus. The catch is that your insurance company needs to know where the car actually spends its nights. If your son or daughter takes the car to school in another city or another state, tell us. A car garaged somewhere other than what is on your policy can create problems right when you need help most.

If your student bought their own car and titled it in their own name, that is a different situation. In many cases that car needs its own policy, and your policy may not step in at all.

Is your student still part of your household?

Most auto and home policies cover relatives who live with you. A full time student who is temporarily away at school is often still treated as living at home. A graduate who signed a year round lease, moved their mail, and only visits on holidays may not be. Every policy words this a little differently, so this is worth a phone call instead of an assumption.

Do you have an umbrella policy?

An umbrella policy adds a big layer of liability protection on top of your auto and home coverage. When a serious crash happens, the costs can blow past standard auto limits fast. I want parents to know two things. First, your umbrella generally only works the way you expect if the cars and drivers underneath it are set up correctly. Second, a car your student owns on their own policy may not be included unless we plan for it.

Driving friends around

College life means road trips, rides to practice, and late night food runs with a car full of friends. If there is a crash, passengers and their families can make claims. That is exactly why I push for higher liability limits on young drivers, not lower ones to save a few dollars.

My back to school checklist for parents

• Confirm every car your student drives is listed and garaged at the right address.

• Ask whether your student still counts as part of your household under your policy.

• If your student owns a car, make sure it has its own coverage and see if your umbrella can include it.

• Review your liability limits. Young drivers are exactly where higher limits pay for themselves.

• Ask about good student and distant student discounts. Some carriers offer a break when the student is far from home without a car.

Frequently asked questions

Does my auto insurance cover my child at college?

Often yes, if they still count as part of your household and the car is on your policy. Tell us where the car is kept.

Do I need to tell my insurance company my kid took the car to school?

Yes. Where the car is garaged affects your policy, and leaving it out can cause trouble at claim time.

Will my umbrella policy cover my college student?

It can, but only if the cars and drivers underneath it are set up the right way. This is worth a review before the next semester.

If you have a student heading back to campus or already there, give us a call at (262) 754-4736. A fifteen minute review now is a lot easier than finding out the answer after a crash.