While they’re away, you might be able to save a bundle on insurance. Here’s how.
Kevin McCormally: I am Kevin McCormally of Kiplinger's and I am here with Mark Solheim, the Automotive Editor of Kiplinger's Personal Finance Magazine to talk about kids, cars and college. Mark, anybody has ever had a teenager around their automobile insurance policy knows that it can drive the premiums to the roof. But I understand there is a break when the child goes off to college. Can you tell me what it is? Mark Solheim: Sure. As long as your son or daughter is going a 100 miles or more away from home to college and of course doesn't take the car, the insurance company is likely to give you a pretty generous discount. Kevin McCormally: Can you give me an example ? Mark Solheim: Well, it varies as all things in automobile insurance to by company and even by the state, but we talked to a family in California who sent their son from to Washington DC, of course left the car behind and their family premium was reduced by $300. Kevin McCormally: Say me, is the child is still covered on the policy? Mark Solheim: Yeah, the child is still covered because the reason you are still paying for the insurance is because they know your kid is going to come home and drive the car over summer break or Christmas break. Kevin McCormally: Mark, how do I get this discount on my premium? Mark Solheim: Well, naturally you have to call your company or your agent, but even if you have already send your child to college, call anyway, they might even give you retroactive discount. Kevin McCormally: Well, thank you Mark.