The process of preparing to send a child off to college can be daunting. There are a seemingly endless number of things to accomplish in addition to the emotional issues involved. While you do not need to buy all kinds of insurance as your child goes off to school, you do need to review the coverage and plans in effect to assure that you are prepared for that stolen laptop or trip to the emergency room.
Although the needs of each situation can vary widely, here are several different areas of concern.
HEALTH
Since your children can remain on the family policy until their 26th birthday, there may not be a need to purchase a separate policy for the student. However, keep in mind that your child’s new location could be out of network for your current plan and service/cost could become an issue. Be sure to check available doctors and hospitals near the university your child is attending.
AUTO
Car insurance is actually an area where the family may save money at this point in time. Most insurance policies have a rating for “Student Away”. This usually is a reduction in the premium for a college student over 100 miles away from the family residence without a car. This, along with a Good Student Discount, can save on the family auto premiums.
Please keep in mind that if your child does take a car to school, you as the titleholder are responsible for the operation of the vehicle. An Umbrella Liability policy should be considered essential.
PERSONAL PROPERTY
It is not unusual for a student to have thousands of dollars of electronic equipment and other personal items in their dorm room or apartment. These laptops, tablets, video players, bicycles, and musical instruments are popular targets for theft. There are restrictions and exclusions that limit the coverage so be sure to call us to take the necessary steps to insure proper coverage.
LIABILITY
It is important to be sure that the residence of your student has liability coverage. An injury to a guest at your child’s apartment or dorm room could expose the family to a significant liability claim, along with defense costs. Talk to us about placing proper Liability coverage for all locations. Again, an Umbrella Liability policy should be a part of your planning process.
LIFE
Buying Life Insurance for a college student might sound overly cautious, if not a bit morbid. But it can make sense for parents who co-sign for tens of thousands of dollars of student loans. Without this, the parents could be exposed to a significant debt in the event of the death of their student. Also, some Life Insurance programs can build a cash equity to help pay for college expenses and the rate would be based on your child’s current age.
Good luck to your child-student in this exciting new life chapter and be sure to talk to us regarding proper coverage for the experience.
For more information about insurance for college students, give Corbett & Associates Insurance Agency, Inc. a call at 805-496-1424 today!