Auto and Property Insurance for College Students: What You Need to Know
It may seem like just yesterday that you were waving goodbye to your kindergartner.
Now, in what seems like a blink of an eye, you’re preparing for another goodbye as your college-aged student embarks on a new academic adventure — or returns to their beloved university campus for a new semester.
Yet keeping your child safe remains as important now as it was when he or she started elementary school. And while health insurance for young adults is always a hot topic, there are additional coverage considerations.
So, it’s smart to take a moment to ensure your college student has adequate auto and property insurance to minimize financial risks and liabilities for both of you.
Let’s take a closer look.
Even if your child isn’t taking a car to college, you’ll want to consider keeping any licensed college-bound children on your auto policy. After all, when your student returns for holidays and summer breaks, they will need vehicle coverage.
Additionally, it’s possible that a situation may arise on campus where your child might need to drive another student’s car. For instance, your son might need to borrow a car to run a quick errand. Or your daughter may volunteer to serve as a designated driver for a party or evening out with friends.
And while the insurance of the car owner might cover any expenses related to an accident, it’s wise to have your policy as a secondary coverage option.
Note that full-time college students can stay on your auto insurance policy, provided their primary address is also the parent’s home. However, if the student owns the vehicle and has the title, they are responsible for their own auto insurance.
Additionally, consider talking to your insurance agent about possible coverage discounts for college-aged children as well as how good grades may impact auto insurance rates.
Homeowners insurance and theft
As much as we hope otherwise, property theft does happen on college campuses.
So, it’s smart to ask an experienced insurance agent whether your current homeowner’s policy extends coverage to your student’s belongings while they reside on campus.
For example, some homeowner’s policies extend 10% of your property’s coverage to your child’s belongings in their dorm. This means that if you are covered for $200,000 in personal property coverage, your child’s belongings are covered for up to $20,000.
Therefore, if your student’s $400 tablet is stolen, you still might have a policy deductible of $500-$1,000. Again, a knowledgeable agent can help you explore the particulars of your own policy.
Most students decide eventually to swap dorm life for apartment living. When your student decides it’s time to move off-campus, consider purchasing a renter’s policy.
This type of insurance may protect their belongings from theft, fire, vandalism, tornadoes and other unexpected types of damage. Likewise, a renter’s policy may provide liability coverage if another person gets hurt in your child’s apartment or has personal property damaged.
Typically, a basic renter’s policy is sufficient, but an agent can help you determine if extra coverage is warranted should your grown child own any expensive electronics, jewelry or sports equipment.
Questions? We’re here to help.
We know you are entering an exciting time with your child as they begin a new chapter in their lives. And you can trust that our knowledgeable RBFCU Insurance Agency Team is ready to help you explore policy options so that you and your child get the protection you deserve.
You’re welcome to reach out today to one of our friendly, experienced insurance agents for a free consultation or to obtain an online quote.
Information in this article is general in nature and for your consideration, not as financial advice. Please contact your own financial professionals regarding your specific needs before taking any action based upon this information.
RBFCU Insurance Agency LLC is a wholly-owned subsidiary of RBFCU Services LLC. RBFCU Services LLC is affiliated with Randolph-Brooks Federal Credit Union (RBFCU). Insurance products are not deposits; are not obligations of the credit union; not NCUA insured; and not guaranteed by RBFCU Insurance Agency LLC, RBFCU Services LLC or RBFCU.