Insurance: College-Bound Children

Insurance for college aged children is expensive, but you cannot assume your children will be covered under your current policy. You will need to notify your insurer when your child leaves the home and will then see large increases in your costs and may need to add additional lines to your coverage. There are three important insurance types of insurance to make you’re your child is covered; car insurance, health insurance, property insurance and travel insurance.

Car Insurance

If your child is taking a car to college, you need to notify your insurance company. This will result in a large increase in premiums because the car will be garaged at a new, higher risk location. College students also have poor driving records, leading to increased costs. Allowing your child to elect individual car insurance coverage is one option, but this policy will be even more expensive than if your child is listed on your policy. If the car is not going to school but you need to insure your child while he or she is at home, tell this to your insurer. A stationary car will reduce your premium because the child will not be driving the car 9 months out of the year.

Health Insurance

Most policies allow your child to be covered as long as he or she is a student and under a certain cut off age. This age can range from 18 to 22. You will need to contact your insurer to check on this age. Your child may also be required to carry health insurance provided by his or her college, which is typically inexpensive and is used for on-campus health care. Whenever your child is planning on seeing a doctor, ensure the doctor is listed with your PPO or HMO. Share this information with your child so you do not end up with a large bill.

Property Insurance

If you are sending your child away with expensive property, you need to insure that property. Computers, stereos and other possessions can be damaged or stolen very easily in a dorm room. They will not be covered under your property line unless they are specifically listed. This can be very expensive, and it is a good idea to share the insurance information with your child. This will show them the importance of locking doors and protecting property. It will also teach them about which steps in case they ever need to file a claim.

Travel Insurance

Many Americans neglect to purchase travel insurance for themselves, so it is often forgotten for children as well. However, college students travel frequently. They are going to and from their school, and they may spend time abroad. It is especially important to cover your child if they are planning on backpacking or participating in high risk sports such as bungee jumping or sky diving. You may elect insurance for each trip, or you may elect annual travel insurance. Annual insurance often makes the most sense since your child will be traveling so frequently over the course of the year to and from your home.

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