Kids Away At College? Auto Insurance Discount is One Way to Save Money

Auto Insurance for Graduates

We all knew the day would come when your beautiful newborn baby would eventually turn into an invincible teenager eager to get her license, and you dreaded it. We also knew that one day that teenager would eventually make her way off to the college life, and you dreaded THAT. So here you are and there she is. Now what? Well what better way to cure those “I-MISS-MY-KID-AND-HATE-COLLEGE-TUITION” blues than a discount on your insurance!

Insurance actuaries are the mathematicians and statisticians who work diligently analyzing the factors that help determine insurance costs. It’s their studies that instill that gut-wrenching fear of what your insurance premiums will look like once you add Jr. to your policy when he so eagerly and (unfortunately) successfully passes his driving test.

Now, we all know that a newly licensed operator in the household is a huge increase in risk, regardless of the four-door sedan with manual locks and three matching rims that we put them in. We also know what this risk can translate to with insurance rates. What you may NOT have known, however, is once that teenager heads off to college and becomes a student away from home, they present a decrease in that same risk, and as such introduces us to what’s commonly called the “Away-At-School Discount”!

Away-At-School Discount

Your youngster away from home at college poses much less risk than the student still in the household with available access to the vehicles. In recognizing this reduction in risk, many carriers are able to offer this discount to already hefty insurance premiums. There are specific qualifications that must be met to obtain the discount, and these vary with each carrier, but two of the common characteristics are:

  1. The distance to the school your child attends
  2. The ratio of vehicles to operators in the household

So, while you’re staring at the barren room full of posters of Justin Bieber or a collection of the NFL’s top-rated players, wondering if now is a good time to turn the room into that media room you’ve always wanted, call your broker! Find out if there’s a way you can save a little bit of green… to help pay for that surround system.


Oscar Riojas, Jr.

Oscar Riojas, Jr.

Oscar Riojas has been a Client Manager for Willis’ Personal Lines practice in our Houston, Texas, office since April 2011.  Before coming to Willis, Oscar spent 11+ years in the insurance industry sharpening his abilities to effectively advocate for his clients.

Categories: Auto

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