Heading off to college is a big adventure, and the last thing most parents and students want to worry about is insurance. But taking the time to review the kinds of insurance a student should have can pay off in the long run, ensuring that the student is properly covered.
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Auto Insurance
Most likely, your family auto insurance policy will cover a car that the student takes to college, as long as the vehicle is registered with the parent as the owner. However, there might be a difference in premiums between the student’s home and the college, so make sure to consult with your TCI account manager.
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Health Insurance
According to the Affordable Care Act, an individual must have health insurance coverage or they will be subject to a tax penalty. Students can obtain a policy of their own or stay on their parents’ health insurance plans until age 26.
If your child travels while in school, make sure you check if their health insurance coverage extends to overseas travel. It may not.
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Renters Insurance
If your child continues to live in your household or chooses to live in the dorm, his/her belongings are covered under your homeowner’s policy. However, some home insurance policies may limit the amount of insurance for off-premises belongings to a percent of the total amount of coverage for personal possessions. If the limits are too low, parents may consider buying a special personal property floater or an endorsement for these items.
Students who live off-campus are likely not covered by their parents’ homeowners’ policy and may need to purchase their own renter’s insurance policy. Parents should consult their TCI insurance agent to see if their homeowners or renters policy extends to off-campus living situations.
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Life Insurance
Life insurance is probably one of the furthest things from a young student’s mind. But even young people should consider coverage in case of accidental death, whereby the policy would payout for funeral expenses and any outstanding student loans or bills that would still need to be paid.
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Did You Know?…
- Statistics show that drivers under the age of 25 have a significantly higher risk for accidents. As a result, the age group of 16 – 25 year-olds will face the highest insurance rates in the country.
- Adults ages 19-29 are more likely to be underinsured than other age groups.
- An uninsured stay in the hospital or visit to the emergency room can cost thousands, or even tens of thousands, of dollars.
- Dangerous behaviors in the collegiate years can have long-term effects on health, including side effects of smoking, binge drinking, and STDs.
- 70% of young people living on their own do not have any renters insurance.
- The typical burglary of a college student’s personal belongings is around $2,100.
- The average college student graduates with $30,000 of student loan debt.