Auto Insurance Premium adjustment now that kid has left the nest for KP?

[ChaggyC17]

For the veteran parents out there. I have USAA and I am wondering if my insurance premium will be lowered now that my kid will not be home that much anymore. I asked USAA the question, but I figure I could throw it out here with the assumption someone has experience with this already.

I have another teenage daugther who just turned 16, but she cannot drive yet due to the CoVid madness. I figure I could take advantage and save a few dollars before she starts driving on her own in about 7 months.

Thanks!

 

[shiner]

We are expecting a pay rise (so to speak)! My plan is to sell his car which is literally more individually than my other two cars combined. We will list him as a secondary driver for our vehicles, but dropping him as a primary will help.

 

[THParent]

Even if your student is not taking their car (if they own one) to college, they should continue coverage. Many companies have a discounted rate for students who are away at a school and at least a certain number of miles from home, typically 100 miles.

When they come home from school on breaks, they will want to be covered. If they go without insurance, they may have issues getting auto insurance down the road, since many companies require continuous coverage.

 

[Capt MJ]

For the veteran parents out there. I have USAA and I am wondering if my insurance premium will be lowered now that my kid will not be home that much anymore. I asked USAA the question, but I figure I could throw it out here with the assumption someone has experience with this already.

I have another teenage daugther who just turned 16, but she cannot drive yet due to the CoVid madness. I figure I could take advantage and save a few dollars before she starts driving on her own in about 7 months.

Thanks!

Discuss with USAA and ask about the Service Academy non-operator situation, being very specific about USMMA, same status as any of the other four.

This is NOT an away-at-school discount. Your mid or cadet comes off the policy as a family driver, and you no longer pay that portion of the premium. They are covered on visits home the same way Aunt Bess is if she borrows the car while visiting. They know your mid will not have a car there for some years, and will not be driving much during their SA time.

At the point where they will have a car there, or regularly borrowing others’ cars, that’s the time for them to have a car in their own name as the registered owner and get a USAA auto policy in their own name, setting them up as independent USAA members and getting the appropriate rate as first, service academy cadets or midshipmen (different then their ROTC peer, generally less) and then the O-1 Officer rate, better than family member of USAA member.

Cheerfully launch them toward that and a small personal property policy that covers laptop, class ring, sports gear, personal stuff, no matter if still in the room at home, at USMMA, in a storage locker, at a sponsor’s house. That way they are off your own homeowner’s or personal property policy for what are generally small claims below your deductible.

Don’t hesitate to escalate the call to a manager and push through to someone who knows how to look up the internal screen showing the five SAs and how they are handled for auto. Of the millions of USAA members, this is a relative trickle each year, and some phone reps don’t see incoming SA-related calls that often.

Of course, talk through all the ramifications, risks and scenarios.

Caveat: I used to work for USAA, but not as a licensed rep, and this is what I would hear the reps in the Annapolis office tell USAA members with incoming plebes.

 

[1842]

Our son will be a senior. Having a car their first 2 years is not really a necessity. They don't get to leave campus all to often. I signed him up for Uber and he was able to us public transport for all his travel needs.

 

[Robotmom]

I will add if you have USAA start the conversation by asking if the agent is familiar with non-operator status and service academies. I had to go back and forth with USAA about this. I should have asked that question up front. It would have saved a lot of time.

 

[azmilmom]

Discuss with USAA and ask about the Service Academy non-operator situation, being very specific about USMMA, same status as any of the other four.

This is NOT an away-at-school discount. Your mid or cadet comes off the policy as a family driver, and you no longer pay that portion of the premium. They are covered on visits home the same way Aunt Bess is if she borrows the car while visiting. They know your mid will not have a car there for some years, and will not be driving much during their SA time.

At the point where they will have a car there, or regularly borrowing others’ cars, that’s the time for them to have a car in their own name as the registered owner and get a USAA auto policy in their own name, setting them up as independent USAA members and getting the appropriate rate as first, service academy cadets or midshipmen (different then their ROTC peer, generally less) and then the O-1 Officer rate, better than family member of USAA member.

Cheerfully launch them toward that and a small personal property policy that covers laptop, class ring, sports gear, personal stuff, no matter if still in the room at home, at USMMA, in a storage locker, at a sponsor’s house. That way they are off your own homeowner’s or personal property policy for what are generally small claims below your deductible.

Don’t hesitate to escalate the call to a manager and push through to someone who knows how to look up the internal screen showing the five SAs and how they are handled for auto. Of the millions of USAA members, this is a relative trickle each year, and some phone reps don’t see incoming SA-related calls that often.

Of course, talk through all the ramifications, risks and scenarios.

Caveat: I used to work for USAA, but not as a licensed rep, and this is what I would hear the reps in the Annapolis office tell USAA members with incoming plebes.

Thanks, @Capt MJ for the valuable info. We've kept our son on our Amica insurance plan as an away college student (same as other offspring in the same position) which decreases our payments but keeps him under our coverage umbrella--which he needs as he rents cars, drives Vigilant ambulances, etc. Hadn't thought about USAA for an individual policy and what you've said makes a lot of sense. I had USAA insurance for many years as a military dependent and knew that my rates were higher than regular members but hadn't thought about it for our Midshipman.

Good to know!

 

[Capt MJ]

Thanks, @Capt MJ for the valuable info. We've kept our son on our Amica insurance plan as an away college student (same as other offspring in the same position) which decreases our payments but keeps him under our coverage umbrella--which he needs as he rents cars, drives Vigilant ambulances, etc. Hadn't thought about USAA for an individual policy and what you've said makes a lot of sense. I had USAA insurance for many years as a military dependent and knew that my rates were higher than regular members but hadn't thought about it for our Midshipman.

Good to know!

It’s very easy for him to get a quote online. He has to remember he is both USMMA and USNR. Something he can do anytime you are ready to launch him. If he has a car in his own name, it’s very straightforward.

Very generally speaking, adjusted for individual risk assessment and type/location of vehicle, USAA rates for military AD, Guard and Reserve are in different group rate categories than spouses and children, meaning the most favorable rates go to the one who is wearing or has worn a uniform. Once he’s 25 or so, the rates usually improve more, assuming his personal record hasn’t impacted his risk factors.

 

[golfindad]

Capt MJ is absolutely correct. I don't work for USAA, but have auto, home, banking, rental policies with them for me and the fam. Almost like-all my money goes to USAA----

If you have a USAA policy, It is likely that the call center representative you get at first on the 800 number will not know what you are talking about with regards SA treatment. The SA cadet/mid is not like a normal college student. You need to be insistent, and elevate the call to a supervisor or above until you find someone who knows of the program. For the SA's, USAA keeps the mids on the policy, as a courtesy, but there is no premium paid for it. This keeps your mid from having any time period where he/she is uninsured. You also do not have to consistently call to change status from at home to at school etc. During the limited times he drives, he is covered even though he is not "paid for."

I am not sure if the mids can get into USAA without another membership factor until graduation/commissioning. So far my son's coverage has remained on our family auto plan, and his rental policy is through our membership, I think, although in his name.

USAA has a decent rental policy. It covers typical rental policy items, but also has cover for uniforms, rings, etc., and is relative reasonable.

With regards banking, I find USAA FSB is more efficient and responsive than Navy Fed. We have relationships with both, and USAA just feels more in tune. But, they could very well be personal preference and ymmv.

 

[Capt MJ]

Thanks for clarifying exactly how it works for SA mids and cadets on the auto policy. I knew the premium was no longer charged, but couldn’t recall how they were named on the policy. As I said before, USAA knows they can’t have cars for quite awhile, and will be driving very little over the four years.
On the day your son raised his right hand to go on AD as a mid, he became eligible for USAA membership in his own right, with the rates that go with AD at a SA, then AD 0-1. That personal property policy may well be in his own name, and has started his timeline as an independent USAA member based on his own military status. That date comes in handy when he gets down the road and gets longevity bonuses for years of membership. An auto or property policy is the key to full USAA membership status.