College is a good time to learn about insurance—4 years fly by, and after graduation students enter the real world. Scary! It’s a good idea to make sure your not-so-young-anymore child understands what insurance is, why he or she needs it, and what insurance is necessary. Knowing your child is at the very least properly covered can make it a little easier to let go.

Teaching your children about insurance and getting them involved in the insurance process when they are away from home will help with the transition to the “real world.” Reviewing your family’s insurance coverage with your child may sound boring, but it will help them to understand where there is potential risk and how costly those risks can be.

College is a good time to get the conversation about insurance started. Insurance can help protect your child from the high costs of accidents, because in college they will happen. College campuses are unfortunately not crime free. Your child is or is likely soon-to-be renting an apartment or driving a car around their college town. Make him or her a part of the process of insuring property; your kid will thank you later!

INSURANCE & TAKING A CAR TO COLLEGE

What do you do if your child is taking a car to college? Should the car go to college under your plan? Adding your child to your auto insurance plan is the easiest option. Your child does not need a plan independent of yours yet—it could be more expensive and have less discounts.

If your child is taking a car to campus, you will want to notify your insurer so you can be informed of possible credits, discounts, or rate or minimum changes due to campus location, for example, if your child attends school out of state.

Students may qualify for several discounts. If their college is a long distance from home, they could sign up for a resident student discount. Even good grades can give you a discount on your policy—just have your kid maintain a GPA of 3.0 or higher! This is good incentive for your child to study hard. You can save on your premium and see your kid succeed.

If your child lets friends regularly borrow your family car, they should be listed on the plan as well. Likewise, even if your kid is not taking a car to school, if he or she drives at all, like when home for winter break, then coverage is highly advised.  

HOMEOWNERS INSURANCE & DORM-LIFE COVERAGE

If your child lives in a dorm or anywhere else considered to be on-campus, your homeowners policy likely covers them and their belongings. Talk to your agent about your situation. How much does your child have? Your policy likely offers coverage, but generally there are restrictions on the total limits.

Encourage your student to take an inventory of her belongings. Although you may think your kid doesn’t have much of value in the dorms, laptops, special equipment for classes, bicycles, bedding, clothes, books, etc., add up! Help your child do the math to see how much exactly is covered under your existing plan – it might not be enough. Computers may not be covered under your plan and highly valuable items may have a specific dollar limit. If there is not enough coverage under the restricted limits, then your family may want to consider a renters insurance policy for your student, which usually has a lower deductible. Covering your child’s belongings with your homeowners insurance plan or their own plan is important because their college likely will not take any responsibility for property that is stolen or damaged on campus.

RENTERS INSURANCE: YOUR KID’S FIRST REAL HOME

If your child is living off-campus in a house or apartment, it may be a good time to help your child purchase a renters insurance policy. According to Effective Coverage, the average renters policy is $15-$20 a month and $180 a year; this price is affected by your deductible and how much coverage you need.

If your child lives in an apartment, you may want to make sure that he or she is covered in the case of a fire, robbery, or if her personal property is damaged. Your kid has a ton of valuable property: tablets, laptops, desktops, TVs, bicycles, instruments, etc. Speak with your insurance agent to help find a suitable renters policy that will help cover it all.

The average renters insurance policy will include liability protection as well. Your child and his or her roommates are living on their own for the first time – who knows what could happen. Yikes! A renters policy will cover medical bills and court fees. Phew! And again: accidents will happen. At the least, get a stand-alone policy to insure the most important devices.

Keep in mind that with an existing auto insurance policy it is likely that you can save a lot or even offset most of the cost if you bundle your auto and rental policy together. As always, speak with your agent to see if this could be a possibility for you.

UMBRELLA INSURANCE

It’s not a bad idea to get umbrella insurance and to teach your child about it. College is a risky time. When your child is away from home, you have less control over the situation. Furthermore, your child’s college will tell you that they are not liable for any student action that occurs on campus. Umbrella insurance policies can help provide additional coverage to protect your assets, should you need it.

TRANSITIONING TO THE REAL WORLD AFTER COLLEGE

While your kids are still on your insurance plans, teach them to understand your policies so they can effortlessly get their own when the time comes. But what should a new grad do? After they graduate, should your children get their own plans? You should keep your son or daughter on your family’s auto plan for as long as you can receive the discounts and credits associated with having a student. The same goes if he or she still comes home a lot and drives your family’s car.

A good time to advise your children to get their own insurance plans is when they get their own place or their own car. When their permanent residence is no longer where you—the Parent—get all your mail, then it’s time for them to get their own coverage. They will be collecting a lot of new, expensive belongings. At this point your kid is likely no longer a student and is becoming largely financially independent—their insurance needs will be different.

If your child moves back home after graduating, he or she should definitely stay listed on your auto policy. Often providers require all vehicles under one household to be under the same policy, but the good news is that there are usually discounts associated with having multiple vehicles.

In fact, recently it has become more normal for grads to move back in with their parents. If your kid ends up doing this, have a discussion about how long he will be staying with you and what he will be bringing along. Every state has different regulations, but usually, your homeowners will cover your kid’s belongings since he is likely still considered a permanent dweller when right out of college. Speak with your agent and update your policy. Updating your policy will likely cause your monthly premium to rise, and in this case, you may want to ask your child to consider getting a renters insurance policy. This will cost you nothing and will give your kid a sense of financial independence in the meantime.

“MY KID ISN’T INTERESTED”

If your children seem uninterested in getting involved in your family’s or their own insurance policy, at the very least bombard them with texts about the topic. Show them this awesome Insurance Lingo Guide we have!

Keep in mind that your child is going to be making loads of new friends from all over the nation and the world. They will probably plan a summer or spring break trip, which means they might rent a vacation home. Your primary renters or homeowners insurance will likely offer personal possession and liability coverage while you or your child are away, but not a large amount.

Accidents can happen, so do not forget to teach your child about filing a claim. Preach the importance of keeping copies of invoices, medical bills, correspondents, contact information, and the like. If you are not already close to your kids, start a dialogue so that helping them get their own insurance goes smoothly.

IF YOU HAVE A SON OR DAUGHTER IN COLLEGE, CALL INSURAMATCH NOW AT 855.244.7671 TO SPEAK WITH AN AGENT TO LEARN MORE ABOUT YOUR INSURANCE OPTIONS.

Sources:
https://www.fivecolleges.edu/riskmgmt/studentrisk/student-insurance
https://www.fivecolleges.edu/riskmgmt/policies/student_liability
http://www.autohomeboat.com/research-center/real-life-situations/graduating-from-college
https://quotewizard.com/auto-insurance/getting-off-your-parents-car-insurance
https://www.charlotteinsurance.com/our-blog/entryid/456/does-your-homeowners-insurance-cover-your-college-student
https://coverhound.com/insurance-learning-center/getting-renters-insurance-while-living-with-family
https://www.effectivecoverage.com/3063/average-cost-renters-insurance/