A student leaving for college brings up both sadness and excitement as young people start a new life chapter. It also brings up insurance concerns. Car and renters insurance are some coverages most commonly sought for college students.
Car Insurance Recommendations
Most insurance companies place drivers 16-25 years old in the high-risk category. Premiums charged for people this age are based on accident rates, which are more than 400 percent higher than for older drivers. However, young people who take a defensive driving course and have a GPA of at least 3.0 typically qualify for lower premiums. Parents who leave their college students on their policies sometimes receive discounts based on these factors.
Leaving a student on a parent policy can also provide extra coverage if their child is a passenger when an accident occurs. Sometimes, however, it might not be worth keeping a college student on a family plan.
Usually, keeping a student on a family policy is recommended if the student lives at home but commutes to college. It also benefits students and parents if the student takes classes no more than about 100 miles from home or they come home – say every weekend. Any young persons attending college who do not drive on campus have no need for the family insurance plan, and the parent can instead add them as a temporary driver.
Renter's Insurance Recommendations
If a student lives in a dorm, the building itself is covered by the university insurance. However, personal belongings and textbooks typically are not. Young people living on campus usually can secure a renter insurance policy at a low cost. This replaces costs of educational materials such as books, notebooks, backpacks and more if they are listed on the policy inventory. It also would pay for replacement of damaged clothing, electronic gadgets, computers, and more.
Sometimes, a parent will leave a student on their homeowner's policy. However, not all insurance contracts extend to a college dorm. The same applies to an off-campus apartment or another dwelling. In any case, these are types of claims a renter's insurance policyholder might make.
- Report of a missing/stolen book, tablet, smartphone or computer
- Replacement of water-damaged items
- Seeking new versions of burnt items lost in a fire
- Funding requests for personal property destroyed
- Liability coverage in cases of accidents
- Payments for medical treatments in case of injuries
Regarding the last instance mentioned above, not many people think of renter's insurance as an avenue of medical coverage. However, slips and falls in student housing are a common occurrence, and they often require coverage of both liability and medical expenses that most people cannot pay out-of-pocket.
Is your child now heading off to school? Learn more about your student insurance options for college students.