Sending a child off to college comes with a long checklist: tuition, housing, textbooks, meal plans, laptops, and everything needed for a dorm room or apartment. If your student is also taking a car to campus, there’s one more important item to add to that list: reviewing your auto insurance.
For Northern Michigan families sending students to colleges across Michigan or out of state, taking a vehicle away from home can change how it is used, where it is kept, and who may regularly drive it. Those details matter to an insurance company. Even if your child doesn’t take a vehicle, their usage of any vehicles or even their personal injury protection as a passenger or pedestrian from the Michigan auto policy can be affected by their temporary relocation.
Before your student packs the car and heads out from Traverse City, Suttons Bay, Elk Rapids, Williamsburg, or elsewhere in Northern Michigan, here are some important insurance questions to discuss with your agent.
1. Does the Insurance Company Know Where the Car Will Be Kept?
One of the first questions to ask is whether your insurance company needs the student’s college address.
Insurance companies consider where a vehicle is principally garaged when determining coverage and rates. If your child normally keeps the vehicle at your Northern Michigan home but will now have it parked at a college apartment, dorm, or off-campus house for most of the school year, your insurer will need to know that for rating as well as claims purposes.
Don’t assume that because your child is still a member of your household, nothing needs to be updated.
Tell your insurance agent where the student will be attending school, whether the vehicle is going with them, and where it will normally be parked.
2. Can My College Student Stay on Our Auto Insurance Policy?
Many parents wonder whether a college student needs a separate auto policy simply because they are living away from home.
The answer is not usually, but there isn’t one answer that applies to every family.
Whether your student can or should remain on the family policy can depend on factors such as vehicle ownership, residency, where the vehicle is kept, and the insurance company’s underwriting requirements.
This is especially important if your student has moved into an apartment, established a different permanent residence, purchased or titled a vehicle in their own name, or attends college outside Michigan.
There have been Michigan insurance court cases involving students injured that remained listed on their parent’s auto policy but were denied coverage as they were deemed to not be a ‘legal household resident’ at the time of the accident. Therefore, instead of making assumptions about when a separate policy is necessary, review the situation with your insurance agent.
3. What Happens to Michigan No-Fault Coverage When a Student Leaves for College?
Michigan’s auto insurance system can make sending a student away with a vehicle more complicated than simply changing an address.
Michigan drivers now have choices regarding Personal Injury Protection, commonly called PIP, which pays for certain medical expenses and other benefits following an auto accident, subject to the terms and limits of the policy.
A change in household circumstances can be a good reason to revisit those selections.
If your student will be living somewhere else for much of the year, ask your agent whether the move affects any information previously used when making your family’s PIP selections.
Don’t wait until after an accident to find out that something should have been updated.
4. Is Your Liability Limit Still Appropriate?
College can mean a significant change in driving habits.
Your student may be driving in a larger city, traveling home to Northern Michigan on weekends, transporting friends, commuting to work, or making longer trips during school breaks.
That makes back-to-school season a useful time to review your bodily injury and property damage liability limits.
Liability insurance protects you financially when an insured driver is legally responsible for injuries or property damage resulting from a covered accident, up to applicable policy limits.
For families who haven’t reviewed their limits in several years, this is also a good time to ask whether those limits still make sense for their current financial situation.
5. What If My Student Lets a Roommate or Friend Drive the Car?
This is one of the conversations worth having with your student before the semester starts.
College students frequently share rides, and handing a roommate the keys may seem harmless. Insurance can be much more complicated.
Coverage when another person drives an insured vehicle depends on the circumstances, policy terms, the driver’s status, how frequently that person uses the vehicle, and other factors.
If a roommate or friend will regularly use your student’s car, don’t rely on a general rule about “permissive use.” Contact your agent and explain the situation. Again, there are legal case laws where roommates ‘sharing’ a vehicle made that vehicle defined as ‘furnished or available for your regular use’ and was therefore excluded from the auto policy as a furnished auto.
It’s also a good idea for parents to establish clear expectations with their college student about who is allowed to drive the vehicle. In legal cases, courts will look at prevention and what steps were taken to make sure that the vehicle driving/drivers was know and monitored.
6. Does Going to College Change the Cost of Auto Insurance?
It can.
A vehicle’s location, how it is used, annual mileage, drivers, coverage selections, deductibles, and other underwriting factors can all affect premiums.
If your child previously drove daily around Traverse City but will now live and drive in Grand Rapids, East Lansing, Ann Arbor, Kalamazoo, or another college community, the vehicle’s risk characteristics also change.
On the other hand, if your student attends college without taking a vehicle, tell your agent that too. Some insurers may have different rating considerations for students who live away at school without regular access to a vehicle.
The important point is to give your insurance agent accurate information rather than trying to predict whether the change will increase or decrease your premium.
7. Are There Student Discounts We Should Ask About?
College expenses add up quickly, so it’s reasonable to ask whether your insurer offers discounts applicable to students.
Depending on the insurance company and eligibility requirements, potential discounts or rating considerations may be available based on factors such as academic performance or a student’s circumstances while attending school away from home.
Discount availability and qualifications vary by carrier.
Ask your agent what is available rather than assuming a discount will automatically be applied.
8. What About the Student’s Belongings Inside the Car?
Students tend to pack vehicles with laptops, tablets, clothes, sporting equipment, textbooks, and other personal belongings.
Parents sometimes assume auto insurance covers everything inside the vehicle if it is stolen or damaged. That is not the case.
Auto insurance generally focuses on the vehicle and auto-related liability. Personal belongings instead fall under applicable homeowners or renters insurance, depending on the circumstances, policy terms, deductibles, and coverage limits.
If your student is living in a dorm or renting an apartment, it’s worth reviewing both auto and personal property coverage before move-in day.
9. What If the Student Is Attending College Outside Michigan?
If your child is taking a Michigan-insured vehicle to a college outside the state, tell your insurance agent before they leave.
Different states have different auto insurance requirements, and a student who spends most of the year somewhere else may create additional considerations.
Provide your agent with the college location, living arrangement, vehicle information, and expected usage so they can determine whether any policy changes are necessary.
This is particularly important if your student intends to establish residency, register the vehicle, or obtain a driver’s license in another state.
It is also important to stay in touch with your agent regarding your child’s living and college residency. They may decide to take a full year off to travel or study abroad. Both of those situations create additional insurance concerns that can leave them and you unprotected for liability and injury/medical expenses.
10. Should We Review Umbrella Insurance Too?
For some families, sending a young driver away with a vehicle is a good reason to review their broader liability protection.
A personal umbrella policy can provide additional liability protection above certain underlying insurance policies, subject to the umbrella policy’s terms, exclusions, and required underlying limits.
If your family already carries umbrella insurance, ask whether your current auto liability limits and student-driver information satisfy the policy requirements.
If you don’t have umbrella coverage, your agent can explain how it works and whether it makes sense for your family’s circumstances.
A 10-Minute Insurance Conversation Before Move-In Day
Before the car is packed, gather a few details for your insurance agent:
- College name and location
- Student’s new address
- Where the vehicle will normally be parked
- Who owns and titles the vehicle
- Who will regularly drive it
- Whether roommates or friends may have regular access
- Approximate annual mileage and anticipated use
- Whether the student is staying in Michigan or attending school elsewhere
- Any changes to the student’s permanent residence
A short conversation before the semester begins can help make sure the information on your policy accurately reflects how and where the vehicle is being used.
Heading Back to College? Review the Auto Policy Before the Car Leaves Northern Michigan
Between shopping, packing, tuition payments, and move-in schedules, auto insurance may not feel like the most urgent part of preparing for college.
But when a student takes a vehicle away from home, several details can change at once.
For families throughout Traverse City, Suttons Bay, Elk Rapids, Williamsburg, Leelanau County, Grand Traverse County, and surrounding Northern Michigan communities, Cardinal Insurance Group can help review your family’s current auto insurance and discuss questions related to a student leaving for college.
Before your student heads to campus, contact Cardinal Insurance Group for an auto insurance review. We’ll help you understand your current coverage, identify questions that may need to be addressed, and make sure your insurance information reflects your family’s current situation.
Linda M. Fisher, AAI, CIC, CPRIA, CPRM, LIC, LUTCF, TQA
Trusted Guidance. Personalized Service.