Coverage for College Bound Kids: Is Your Student Protected?
As a parent, you've done all you could to prepare your child for
college. You've set guidelines and expectations. You talked to him or
her about everything from study habits to money management. You feel
confident that your child will enjoy great success because you have covered all
the bases.
Or have you?
Insurance coverage is an important, yet overlooked issues facing college
students. But how do you know if your student is appropriately covered?
Gauge your student's insurance needs by asking yourself the following:
- Are my student's personal
possessions covered under my homeowner's insurance?
- If my student drives a
friend's car and gets into an accident, is he covered?
- Is my student covered under
my health insurance plan?
- What benefits will my health
insurance provide for my student?
The answers to these questions are imperative in determining what kind of
coverage your student lacks—and how to make up for it.
Rental Insurance
Rental insurance is the most disregarded form of insurance, particularly
concerning college students. Many parents assume their student's belongings are
covered under their homeowner's insurance or that the landlord will cover
losses resulting from fire or burglary. And often times, renters throw caution
to the wind and hope that their dwelling will not be victimized.
The fact of the matter is homeowner's insurance policies may not cover
all—if any—of your student's belongings when they are away at college.
Furthermore, neither your student's school nor your student's landlord can be
held accountable for any losses due to fire or theft.
The easiest solution? Renter's insurance. Renter's insurance policies are
generally quite affordable, with annual premiums running around $150 to $200
for $15,000 of coverage for personal property. According to the Insurance
Information Institute (III), your student's renter's insurance will cover
damages from fire, smoke, lightning, vandalism, theft, explosion, windstorm and
water damage (non-flood related). Renter's insurance also covers additional
living expenses if your student is unable to live in his apartment or house
because of a fire or other covered loss. This means that your student's meals,
laundry and lodging bills are paid by the insurance company—not by you.
Renter's insurance really is a no-brainer. Low premiums make it an
affordable source of protection.
Auto Insurance
Before your student goes off to school, be sure to inform your auto
insurance agent of any changes in your household. For instance, if your student
lives away from home and away from the family cars, you may save up to 20
percent on your auto insurance. However, you should not drop your son or
daughter from your auto insurance all together—if your student gets into an
accident with a friend's car, he or she will not be covered.
Conversely, if your student takes his or her car to school (about seven out
of 10 do), your rates could go down—or up—depending on where the school is
located. In any event, you will want to contact your agent to see what coverage
is available for your student, and what kind of premium adjustments to expect.
Health Insurance
Like most parents, you are undoubtedly concerned for your student's well-being
while at college. Before your son or daughter leaves for school, you will want
to see if your health insurance covers your student at school, what services
your insurance will cover and for how much.
Generally speaking, health insurance policies won't cover part-time students
or after they reach the age of 23—although some policies expire earlier. Some
policies do not cover dependents if they attend school out-of-state, so be sure
you are aware what benefits are available to your student.
If you lack health insurance or your policy provides limited coverage, you
may seek coverage for your student through their school's student health
insurance program. Nearly all educational institutions fund insurance programs
for their attendees. Student health insurance is reasonable in price but it may
have limits on what it covers.
You may also want to consider purchasing health insurance for your student
through the American College Student Association (ACSA). The ACSA provides
health insurance, short-term insurance, study abroad coverage and dental
insurance for students at any college or university. Policies
can last from three months to a year, depending on what term you choose.
If your student plans to travel abroad during his or her studies, you may
want to look into worldwide health insurance offered through such companies as
International Student Insurance. With medical, mental health, maternity,
sports, and terrorism coverage as standard benefits to their policies, the
Global Student Health Insurance Plan can help parents and students
rest easier knowing they are covered when they travel.
To contact the ACSA, call (888) 526-2272. For more information on
International Student Insurance, call (877) 328-1565.
InsureMe Can Help
As a parent, sending your child to college can bring feelings of pride—and
apprehension. Properly insuring your student is important in securing their
safety away from the nest.
Review your policies to see what types of coverage are available to your
student. If you find they won't cover your child, give InsureMe's free referral
service a try. Just enter your information to the right and get matched to
agents on our network who will provide you free insurance quotes.
Don't wait for the unforeseen to bring stress to you and your student. Find
the coverage you need today.
