Congratulations, your child was accepted into college, maybe in a different city or even a different state. While many parents are focused on how to pay tuition, it is also important to review their insurance policy coverages of the child. Not notifying your insurance provider of changes could put your policy coverage at risk.
Health and Medical Insurance
Some colleges, and states mandate that students have medical insurance coverage. Some schools offer school-sponsored insurance for a fee (some for a little at $1,200 a year). You can also check your own family insurance plan to see if, or when. your child outgrows the plan (can vary between 18-26 years old). Do you have an HMO? Your child may have to go to an outside network if they attend an out-of-state school. Does your current policy meet school standards? Some colleges might require students’ health insurance plans to meet its criteria (ex. deductibles) in order for the students to opt out of the campus-sponsored plans.
Auto Insurance
The question often asked is — do I keep my child on my policy or is there a way to save money? This is especially true if your child is not allowed to have a car on campus or won’t be driving for an extended period of time.
- Remove child from your policy – Most car insurance companies will allow you to remove a child how has left for college – as long as the school is more than 100 miles away.
- Student away discount – Some auto insurance companies will offer select discounts (15-30%) for a student who is away at school over 100 miles from home in order to show continuous coverage in the event the child buys a vehicle and insurance in the coming years.
- Drop child to an occasional driver – Some auto insurance providers allow you to change the status of your child from primary to occasional driver – this is someone who drives less than 25% of the car’s annual mileage.
- Good student discount – If your child receives good grades and is under the age of 25, it could help lower your insurance cost (52-25%) if they meet certain criteria (ex. normally a B grade or better).
Rental Insurance
While your child is at school, it is also important to protect their personal property safe from theft, fire or other mishaps. In general, if your child is living on campus and going to school full time, your homeowners, renters’, or condo insurance policy (including liability protection) will cover his or her gear. If your child moves off campus or take fewer classes (part-time student), your policy will most likely not protect his or her assets and they will need to purchase renters insurance.
Once your child changes their permanent address on legal documents like a driver’s license or tax returns, they are no longer considered part of your household, and again will need to buy their own renters insurance. The same goes with students who share apartments – and all residents may be required to have their own polices.
It is important that you check with your individual insurance provider(s), as each situation is unique and each provider has their own rules and guidelines. It is also important to review your policy regularly as student situations continually change.
