We sat down with Toni Gironda – isure’s Supervisor of Personal Lines, Personal Service – who has been in the personal lines business for 24 years. Toni’s main goal is to train and mentor our newly-licensed brokers, teaching them about the different types of insurance, how to handle quotes, how to speak with clients and important questions to ask them. We’ve had some common questions around students and insurance when they move away for school. Toni answers some of these important questions below:
What is a student driver required to do before they move away for school?
Typically, it is the student’s parents calling to inform us of any policy changes. You should contact your isure broker to inform your insurance company of any address changes, this way you’ll be rated in the proper territory. Most families will have a minimum of two vehicles, so the student is usually considered an occasional driver under their parents’ policy. If they do take one of their family cars to school with them, there are no additional discounts added, however, they will be rated as a principal driver in the new postal code of where they’re moving to. As always, feel free to call isure with any questions you have regarding changes in your policy!
How much are car insurance rates for students in Ontario?
Unfortunately, this is not a black and white answer for everyone. Insurance rates can range depending on many factors, such as driving record, whether they attended driving school and the postal code that the driver lives in. Boys are typically an average of 40% more expensive than girls, but again, this also depends on location, driving record, car type, etc.
Does a student need to notify their insurance broker if they’re changing their address?
Yes. Your isure broker should be notified of any changes, including address changes, name changes, etc.
Does a student’s auto insurance policy change if they move away and are the principal driver for their vehicle?
Yes, the territory (along with their driving record) will dictate their new price.
If a student who moves away is included on their parent’s auto policy, can they receive any discounts? Are there specific discounts allocated to students specifically?
If a student moves away and goes to school in another town that is 100 km away or more, the premium for an occasional driver will drop by 50%. If the car remains at the parent’s house, the insurance company understands that the student will come home on long weekends and holidays with limited access to the vehicle, hence, the 50% discount.
However, if they do take their vehicle as the principal driver, they will get a new rate depending on where they move to. Some companies will even give you an additional 10% Good Student Discount, which means the student will have to maintain an 80%+ average to receive the discount. The student will need to provide their transcripts from the prior year. Inquire with isure to inquire about your eligibility!
If a student who moves away is included on their parents’ home policy, are their belongings covered while away?
Yes, they are covered, subject to their deductible. Each homeowner’s policy has a deductible (typically most are around $1000.) Again, let your isure broker know of your address change – most student housing or residences will require that you have insurance. If the student is covered under their parent’s property insurance, it’s an extension of their parent’s policy, meaning they won’t need to have their own. If you require confirmation of insurance for the landlord or property manager of where your child is moving to, isure will gladly provide it for you!
For reference, this example of a home policy states: “We insure the personal property of any student insured by this policy, who is temporarily living away from home for the purpose of attending school, college or university.”
What changes are made to an auto insurance policy for out-of-country students?
Currently, we cannot cover student drivers while out of the country. We are only licensed to insure drivers in Ontario. However, a student’s auto policy can be taken to the United States for up to one year (some companies will only cover up to six months). Anything past that and they will have to get an auto policy in the United States. Either way, if your son or daughter is moving away for school, it is essential that you inform your isure broker of this change.
What changes are made to a property insurance policy for out-of-country students?
For property, “the personal property of any student insured by this policy who is temporarily living away from home for the purpose of attending school, college or university” is still covered. Our policy holders are covered anywhere in the world when it comes to their property policy.
It’s important to note that every individual’s situation differs and no two cases are alike. If you are a student or have a child that is moving away for school, please contact our knowledgeable brokers at isure with any changes to policy or questions you may have.