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Sending a child away to college is ridiculously expensive. Tuition, room and board, textbooks and other expenses can quickly bleed your bank account dry. But when a child leaves for college, parents can save hundreds of dollars by doing one simple thing: updating their car insurance.
As most parents already know, the cost to insure a teen driver is through the roof -- and that's putting it mildly. Their youth and inexperience make them the most dangerous -- and therefore riskiest -- drivers on the road. In fact, adding a teen to a car insurance policy will likely tack on thousands of dollars per year to your premium.
Fortunately, there are several ways a college-bound child can work wonders for your car insurance rate:
If your child won't be driving, you could save a fortune by excluding them from coverage while they're away. Students who live and work on-campus probably won't need a vehicle, and in a number of major metropolitan areas public transportation is the best (and cheapest) way to get around. If your insurer doesn't allow exclusions for students, search for a company that does with free car insurance quotes from InsWeb.com.
Many college-bound students still need to drive -- just not as often. For these students, pay-as-you-go car insurance is ideal. It tracks a driver's usage and adjusts premiums accordingly, rewarding low-mileage drivers with rock-bottom rates. Progressive and GMAC offer pay-as-you-go car insurance in more than a dozen states.
By requesting a distant student discount from your insurer, your premium will drop dramatically and your child will be covered while home during holidays. Also, if your child qualifies for a good student discount -- usually a ‘B' average or better -- you could save up to 10%.
Sending your child away to college provides a golden opportunity to shop around for car insurance quotes and save money. With an inexperienced driver out of your household, many car insurance companies could be willing to offer you a much lower rate than you pay currently. Shop around and see how much you could save.
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