Leaving home for college is an exciting time in life for both children and parents. Unfortunately, it also carries some significant ramifications for car insurance coverage, especially if the son or daughter is covered on the parents' policy. This article will describe some common auto insurance pitfalls and ways to avoid them so that children and especially parents can rest a little easier after the kids have left the nest.

Many parents believe that their children are automatically covered when they move away to college, but this often is not the case. Many policies specifically say that children must be living under the same roof as parents for the policy to apply. If students take the car with them it is usually necessary to notify the insurance company in writing or on the phone that the vehicle is going to be garaged somewhere else. This can affect the policy premium either up or down, and can jeopardize the next claim if it is not disclosed. One big question is whether or not to keep the car and insurance under the parents' names or to transfer the car and insurance to the son or daughter. Parents' premiums will certainly be drastically reduced, but since young drivers are considered "at risk" the cost to the kid will be substantial. 

If the son or daughter is not taking the car but will remain on the policy it is important to notify the insurance company as well. Since the child will no longer be living at home he or she will be driving far less. Insurance premiums are therefore likely to go down. The rules vary from company to company, but most require some variation of the following to qualify for the discount. First, the student must be over one hundred miles away. Some companies require he or she be living even further from home to ensure they are not at home driving every weekend. Second, the student must be under the age of 23(again, the exact age limit varies). Finally, the student must not have access to a vehicle covered under the policy while at school.