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.
Preparing Your Student
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.
