Right now I am sure that you are saying, “How can that be? My child is leaving the car that he/she drives at home.” College students are a highly mobile group of individuals and where there is a will there is a way. Maybe your son or daughter will barrow a friend’s car to get to a class or some event. Maybe a group of friends takes a road trip, goes to a concert or a party and your child ends up driving part of the way. There are all kinds of reasons why your child might end up driving even if they do not have a car with them at school. At any rate if he/she is driving there is the chance that he or she could get a ticket or even worse have an accident.
This brings up the second reason that you may wish to reconsider your decision to remove your son or daughter from your auto insurance policy when they head off to college, financial planning. As long as you provide financial support or claim your child as a dependent on your income tax return, you will be deep pockets for any mishap that child might have. If your son or daughter crashes a car while away at school you could be held financially responsible for the occurrence if your child is at fault.
Suppose the car your child barrows is uninsured? Your child is not going to ask for proof of insurance before they barrow a car. He/she is just happy to have a car to drive. Maybe the car your child barrows has insurance but the limits are too low and the cost of the accident exceeds those limits. The injured party will be coming after the driver as well as the owner of the vehicle. Your child, the driver, has no coverage because you have removed them from your insurance policy. This could place your assets in the direct line of sight of the injured party.
This article(s) represents the views and opinions of Garrett Parkinson and not the Insurance Companies that he represents or illustrates in his articles.