Failing to notify the insurer could lead to several problems:
* Coverage gaps: If the car is involved in an accident while parked at the dorm and the insurance policy still lists the parent's home as the principal place of garaging, the claim could be denied or significantly affected. This is because the location of the vehicle is a key factor in determining risk. The insurer's assessment of risk may be different based on the location.
* Higher premiums: If the student fails to inform their insurer and the insurance company later discovers the car is primarily garaged elsewhere, they may increase premiums retroactively or even cancel the policy.
* Policy violations: Some policies have specific clauses about where a vehicle can be primarily garaged. Violating these clauses can result in policy cancellation.
In short, while not legally *required*, notifying the insurance company is crucial for maintaining adequate and uninterrupted coverage. The insurer might adjust the premium based on the new location, but the consequences of not informing them far outweigh the inconvenience of making a simple phone call or updating the policy online.