Distant Student Car Insurance Discount (2024)

What is a distant student car insurance discount?

According to the CDC, statistics show that teenage drivers are at a higher risk of injury or death due to a car accident. That’s why, in general, car insurance rates for teens tend to be higher. At the same time, car insurance companies realize that not all young college students have vehicles with them on campus. In many cases, the cars they drive are back at their parents’ home, and they may drive them rarely, if at all. 

Because these students are driving less frequently, some car insurance companies offer a distant student discount. If your college student will have limited access to their car while at school, you may be eligible for a distant student car insurance discount. Depending on your car insurance company, you might save as much as 15% on insuring your child.

To help students maintain coverage without breaking the bank, insurance companies often provide a college student car insurance discount, ensuring these young adults can focus more on their studies and less on their bills.

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What are the qualifications for a distant student discount?

The qualifications for a distant student discount on insurance vary from company to company. In general, though, the student must attend college full time, and the campus must be more than 100 miles away from home.

The student must be under 23 years of age, and they must not have access to the car while they are at school. In most cases, if your child comes home to visit you for a weekend, they will still be covered if they drive your car.

Should I leave my college student on my car insurance?

Understandably, you might think it would make more sense to remove your college children from your insurance policy altogether. However, there are a few reasons that this might not be the best decision. 

For instance, when your child returns home for weekends, holidays, and summer vacations, they will probably need to car to drive to work and visit friends. Removing them from your policy means your child could not legally drive your vehicle.

Also, to maintain the best rates over time, car insurance companies like to see that drivers are covered continuously without any lapses. If you remove your son or daughter from your policy, even temporarily, it may end up costing more money in the long run.

Additional Discounts for College Students

Besides the distant student discount on car insurance, your college student may qualify for additional student car insurance discounts while they’re away at school. For instance, if you have an insurance agent, ask them about good grade discounts for college students. Some companies will reward students who maintain a B average or better with as much as a 10–15% discount on rates.

Other possible savings include paid-in-full discounts, usage-based discounts, safe driving discounts, and organizational or membership club discounts. 

In general, though, the best way for a young college student to get the lowest possible car insurance rates is to be a safe driver who avoids traffic tickets and fender benders. And, as a parent, you also may be relieved to know that once your child turns 25, they’ll have to leave your policy (and they’ll be eligible for lower rates if they maintain a good driving record.

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A Distant Student Car Insurance Discount Can Add Up to Big Savings

Between tuition, housing, books, and other expenses, having a child in college can take a serious toll on your bank account. According to the National Center for Education Statistics, the average cost of tuition and fees at four-year public schools is $9,400 per year. Fortunately, with the help of a distant student car insurance discount, it’s possible that having a child in college can lead to some savings.

Contact your insurance company to ask if your student qualifies — or shop around for another provider that may help you see a nice drop in your rates. Plus, don’t forget to ask about a further education car insurance discount for after they graduate. As an added bonus, sometimes car insurance companies will offer further savings once someone has a college degree. 

Read more: College Graduate Car Insurance Discount 

Case Studies: Distant Student Car Insurance Discount

Case Study 1: Sara’s Savings

Sara is a college student who lives in a different city from her parents. She attends school full-time and relies on her car to commute between her apartment and campus. When Sara applied for car insurance, she was pleasantly surprised to learn about the distant student car insurance discount. As a result, she was able to save a significant amount of money on her insurance premiums.

This discount recognizes that students who live away from home and don’t have regular access to their vehicles are generally at a lower risk of accidents. Sara’s savings allowed her to allocate more funds towards her education and other essential expenses.

Case Study 2: Mark’s Mileage Discount

Mark is a working professional who often travels for business purposes. He spends a significant amount of time away from home and doesn’t use his car as frequently as he used to. When Mark approached his insurance provider, he discovered the distant student car insurance discount could also be applied to professionals who frequently travel long distances.

Mark’s reduced mileage and limited use of his vehicle resulted in lower insurance premiums. This discount incentivized Mark to maintain a safe driving record and make the most of his car only when necessary.

Case Study 3: Jessica’s Family Affair

Jessica is a high school student who lives in a rural area with limited access to public transportation. However, her parents both work in the city and commute daily. Jessica’s parents included her in their car insurance policy, and when they learned about the distant student car insurance discount, it made a significant impact on their premiums.

Jessica’s parents were thrilled to see the reduction in their insurance costs, considering that she only drives to school and occasional extracurricular activities. This discount made it more affordable for Jessica’s family to insure their vehicles while ensuring her safe transportation to school.

Case Study 4: Michael’s Studious Endeavors

Michael is a graduate student pursuing his master’s degree. He relocated to a different state to attend a prestigious university. While he enjoys exploring the city during his free time, he doesn’t use his car regularly due to the campus’s proximity to his apartment. Michael’s insurance provider informed him about the distant student car insurance discount, which significantly lowered his premiums.

The discount acknowledged that Michael’s primary mode of transportation is walking or using public transit, making him a lower risk for accidents. With reduced insurance costs, Michael can focus more on his studies without worrying about expensive premiums.

Case Study 5: Emily’s Long-Distance Learning

Emily is a student who opted for a long-distance learning program. Instead of attending a physical campus, she completes her coursework remotely from the comfort of her home. Emily rarely uses her car, as she has no need to commute to school. When she inquired about car insurance, she discovered that the distant student car insurance discount applied to students like her as well.

This discount recognized that her reduced driving time and low mileage decreased her risk of accidents. Emily was pleased to take advantage of the discount, as it allowed her to save money while pursuing her education.

Case Study 6: David’s Overseas Study

David is an undergraduate student who embarked on an overseas study program. He temporarily moved to another country to immerse himself in a different culture and gain international experience. Since David didn’t take his car with him, he informed his insurance provider about his situation. The distant student car insurance discount applied to David, acknowledging that he wouldn’t be driving for an extended period.

This discount significantly reduced his insurance costs while ensuring that he didn’t have to pay for coverage he wouldn’t be using. David’s case demonstrates how the distant student discount can accommodate students who temporarily reside outside their home country.

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