Right after my son passed his road test, our car insurance premiums went up. He doesn’t have a car and is living on campus at a college out of state. I don’t understand how the insurance company can just raise our rates like this.
Adding a new teen driver usually increases the rates. The insurance company might’ve checked DMV records for licensed drivers at your address.
Haim said:
Adding a new teen driver usually increases the rates. The insurance company might’ve checked DMV records for licensed drivers at your address.
You might want to ask if they have an ‘away at college’ discount.
@Haim
Yeah, that’s probably the best option here.
Which state are you in? Sometimes, if a driver is a resident relative, even if they’re out of state, they can still be covered by their parent’s insurance. I’ve seen cases where a student was driving a friend’s car in another state and the claim went to the parent’s insurance because the student was still considered a resident relative.
If your son comes home during holidays, he might still be seen as having some access to your car. Some states let you exclude him as a driver, but if you do that, he can’t drive your car at all—not even in emergencies. You’d be on the hook for any damages if he does.
@Davin
Thanks for explaining. We’re in New Jersey, and he hardly ever comes home, even during breaks.
Oli said:
@Davin
Thanks for explaining. We’re in New Jersey, and he hardly ever comes home, even during breaks.
Since he’s your financial dependent, he’s still considered a legal resident of your home. If he has a New Jersey driver’s license, votes, and files taxes there, it counts.
If he doesn’t rely on you financially and you don’t claim him on taxes, or if he’s over 18 and legally independent, you can tell your insurance that he’s not a household member. But be aware, if he drives your car and something happens, the insurance might not cover it, and you could be sued personally. Even with an exclusion, if he gets into an accident, the insurance won’t help.
Oli said:
@Davin
Thanks for explaining. We’re in New Jersey, and he hardly ever comes home, even during breaks.
I’m not an expert on New Jersey, but from what I understand, their rules say that if your son doesn’t have a permanent address elsewhere and still has a NJ license, he’s considered a resident relative. You could ask your insurer to exclude him, but that means he can’t drive your car at all. If you’re lucky, you might catch the underwriting team on a good day, and they might just take him off the list without officially excluding him.
I’m not sure we have the full picture. Insurers usually wouldn’t know if your child passed their driving test unless you told them. It could be a coincidence with your renewal date. Generally, when someone in the household is over 15, they need to be rated or excluded, especially if they have access to the cars when they’re home from college.
@Teegan
If your son got his license, the insurer would likely find out. Insurers often check DMV records for new drivers at a given address.
While they can’t change your base rate in the middle of a policy, they can adjust it if there’s a change in risk—like a new driver living at your address.
@Parker
But how would they know he passed the test unless you added him as a driver? They don’t keep track of DMV records on their own, do they?
Teegan said:
@Parker
But how would they know he passed the test unless you added him as a driver? They don’t keep track of DMV records on their own, do they?
Actually, they do. Insurers use tools like LexisNexis to track changes in DMV records. It can notify them when a new license is issued at your address.
@Parker
I could see that happening at policy renewal but not randomly during the term. They’d only run those checks if you called in with a change.
Teegan said:
@Parker
I could see that happening at policy renewal but not randomly during the term. They’d only run those checks if you called in with a change.
It’s not a traditional MVR; it’s a different report. Companies like Safeco send out letters if they find new drivers at an address, asking the insured to confirm their status. If ignored, it can lead to non-renewal.
@Oli
I get that as a broker. But insurers don’t check this constantly because there’s a fee for every report they pull. Doing it regularly would be costly.
Teegan said:
@Oli
I get that as a broker. But insurers don’t check this constantly because there’s a fee for every report they pull. Doing it regularly would be costly.
Safeco seems to do it pretty often. I see it all the time with them.
Teegan said:
@Parker
But how would they know he passed the test unless you added him as a driver? They don’t keep track of DMV records on their own, do they?
Yes, insurers definitely do track household drivers. It’s standard in the industry.
Congrats on your son starting college! Some insurers do regular updates on household records, but it’s rare. Big companies like Allstate, State Farm, and Farmers might offer an exception for college students. Contact your insurance, explain the situation, and they’ll likely ask for some paperwork and his college address. This should help remove the extra charge.
If you’re with a discount carrier, they might not be as flexible. I worked in insurance investigations for years, and this sort of thing happens a lot. Just work through the process. It’s better to reach out to your insurer directly than ask on a forum.
@NomadNerd
Depends on the state and the insurance company. From what’s been said here, it looks like he might still be rated on your policy but might be eligible for a student-away discount. Best bet: call your insurer. They’ll have the right info.
My insurance has a student-away discount. We still pay a premium because my kid comes home during breaks, and I want him covered in case he gets into an accident, even while away at school.