Managing risk associated with accidents

Properly maintain the vehicle

It is important to keep the car in good repair, especially since some students have a long ride from home to their college campus. Be sure that the vehicle is up-to-date on oil changes and other routine maintenance to avoid breakdowns or other problems before it's too late.

Know what to do after an accident

No parent wants to see a child involved in an accident. However, parents should discuss how to handle the situation with college-bound students.

Immediately after an accident, the driver should check to see if anyone is injured. Then, exchange information with the other party, including name, phone number and insurance information. Taking pictures of the scene and taking your own notes can be helpful down the road, especially since it is easy to forget the details.

If the other party is at fault, it is especially recommended that drivers call the police for an accident report, especially since the other driver might admit fault at the scene, but recall the incident differently later. Once the details are recorded in a police report, it is more difficult for the other person to change their story. In the event that the police cannot respond, look into filing a report with them after the accident. In some states, it is actually required that drivers file a report with the state if the police do not respond.

Finally, drivers should call their insurance company, and if the other driver is presumed to be at fault, contact his or her insurer, as well.

What if a friend wrecks the car?

Students should be aware that they are still liable. Car insurance generally follows the car, not the driver. Parents and students may choose to establish rules about who is allowed to drive the vehicle. Furthermore, if the student's vehicle is owned by the parent, it is the parent (not the student) who determines who has permission to drive. The student does not have the right to share a vehicle that he or she does not own, and insurance companies could deny a claim if the permission does not come from the owner of the vehicle.

Some insurance companies are, however, are implementing the “other insurance” clause, in which the owner of the car's insurance company will turn the claim back to the driver's company to respond to damage and injury. For an agent, making the clauses clear for customers is imperative in this instance. Regardless of the guidelines parents choose to put in place, students should know the details of their policies. Even if a friend wrecks the vehicle, the student is still responsible to pay out for any liability claims, and if liability limits are exceeded, then the driver and car owner can be liable for expenses that exceed coverage limits.

Conversations between parents, students and their agent

Insurers should know when a student is taking the car to college

Since location can be a factor in determining rates, insurers need to know where the car is used and stored. Encourage parents and student-drivers to share these details with you. If a student takes their parents' car to college, their policy needs to be updated noting the change of address. The same is true if a student takes their own vehicle under their own coverage. Depending on the location of the school, insurance rates may go up or down, but if parents or students neglect to communicate this information with their insurer, they run the risk of a denied insurance claim.

Exploring possible discounts

Some insurance companies offer discounts for students who are away at school if their university is a significant distance from home. This discount, as well as others, may be available to parents and new college students, so it is worth discussing discounts with an agent.