What every parent should review before move-in day.

The packing lists are long. Dorm essentials, school supplies, a mini fridge that probably won’t survive junior year.

But somewhere between the shower caddy and the extra-long twin sheets, many families forget to seriously think about car insurance.

It’s not the most exciting part of sending a kid off to college but it can absolutely be one of the most financially consequential.

Here’s what to review before you hand over the keys.

First Question: Is the Car Going to Campus at All?

This seems obvious, but it drives every other decision.

Many colleges restrict or even prohibit freshman cars on campus. If the car stays home, you may qualify for a “student away at school” discount. Most major insurers offer a reduction when a full-time student lives more than 100 miles from home and does not have regular access to the vehicle.

Savings vary by insurer, but meaningful discounts are common. It’s worth the phone call.

If the car is going to campus, buckle up — there are a few more important details to consider.

Staying on the Family Policy vs. Getting Their Own

For most families, keeping a college student on the parents’ policy is simpler and usually more cost-effective. Young drivers on standalone policies often face steep premiums.

A separate policy might make sense if:

• The student permanently relocates to another state
• You intentionally want to separate financial liability
• The vehicle is titled and insured solely in the student’s name

In most cases, however, remaining on the family policy wins on cost and simplicity, especially if your student qualifies for academic discounts.

The Good Student Discount: Actually Worth It

Many insurers offer a meaningful discount (sometimes 10–25%) for full-time students under age 25 who maintain at least a B average (typically a 3.0 GPA or better).

You’ll usually need to submit proof periodically, but the savings can make the small administrative effort worthwhile.

If your student earns good grades, make sure you’re claiming the discount.

Where the Car Is “Garaged” Matters More Than You Think

Insurance companies price risk based on where a vehicle is primarily kept overnight.

If your student takes the car to school in a dense urban area, rates may increase due to higher accident frequency and theft risk. On the flip side, a rural campus may lower risk compared to a major metro area.

The key point: the policy address needs to reflect reality.

If the garaging address doesn’t match where the vehicle actually lives most of the year, you could face claim complications later. Always notify your insurer when the car relocates.

Check Your Coverage Levels (This Is the Big One)

This is where asset protection really comes into play.

Liability Limits

If your student causes a serious accident, your liability coverage protects your family’s financial assets.

State minimum limits are often far too low, especially for higher-income families with growing net worth. With a young, less-experienced driver on the policy, this is the time to reassess whether your limits are adequate.

If you’ve built retirement savings, investment accounts, or home equity, those assets deserve proper protection.

Collision and Comprehensive

If the vehicle is older and not worth much, you may want to reconsider collision coverage.

A common rule of thumb is to revisit collision coverage if the annual premium approaches 10% or more of the vehicle’s value. Every situation is different, but it’s worth running the math.

Roadside Assistance

For a college student navigating unfamiliar roads, and potentially their first breakdown alone, roadside assistance can provide inexpensive peace of mind.

Don’t Forget the Umbrella Policy Conversation

If you’ve built meaningful assets, this is also a smart moment to revisit whether you have an umbrella liability policy in place.

A serious accident involving a young driver can quickly exceed standard auto liability limits. Umbrella coverage sits on top of your home and auto policies and provides an additional layer of protection — often starting at $1 million in coverage.

For many families, umbrella policies are surprisingly affordable relative to the protection they provide.

If your net worth has grown, your liability protection should grow with it.

If Your Student Is Living on Campus Without a Car

Even if the car stays home, don’t assume insurance is irrelevant.

If your student occasionally borrows a friend’s vehicle, your family’s policy may extend liability coverage to non-owned vehicles but coverage details vary. It’s worth confirming with your insurer.

And if they return home for breaks and drive the family car, make sure they are properly listed as a driver on the policy.

The Conversation You Should Have Before They Leave

Beyond the policy details, have the real-world conversation.

College is often when young drivers log the most miles with all of late nights, unfamiliar roads, new cities.

Review the basics:

• No phone use while driving
• What to do after an accident (document everything, call you, avoid admitting fault)
• Where to find the insurance card

Insurance is protection, but it works best when paired with smart behavior.

Move-in day is chaotic enough.

Taking 30 minutes to review your coverage beforehand could protect years of retirement savings.

Because sometimes the biggest financial risks aren’t market-driven.

They’re driveway-driven.

Always consult with your insurance agent to review your specific policy and circumstances. Coverage options and discounts vary by insurer and state.