Higher Education doesn't have to mean Higher Insurance Costs
Money Saving Tips for College Students
Higher education is full of new learning experiences. One thing parents and students don't want to learn is that their insurance doesn't cover an on-campus accident or theft. Along with laptops, mini-fridges and clip-on reading lights, parents ought to send their children off to college with good insurance coverage.
Most homeowners policies will cover the majority of incidents that might occur while a child is away at college, but because each state and company differs, it is important that customers speak with their representative to find out what's covered, what might be lacking, and ways to save money during the academic year.
AUTO
These days, many students commute to school, or live in off-campus housing, so auto insurance can be an issue. Cars registered to the parent remain covered even if the vehicle goes to school with the student. However, parents need to mention the change in location to their insurance agent because the premium might change based on location.
Students with their own cars and coverage might need to be reminded to alert their carrier of the change in location. Insurance isn't always the first thing on a new student's mind!
For students in on-campus housing, or those studying in cities where they don't need a car can save money by asking about a distant-student policy, or a temporary hold, which can be reversed by a phone call for summer or holiday breaks. Those choosing this route should discuss the details with their agent. The student might not be covered driving a friend's or rental vehicle.
As grades come in, good student discounts may be available. These are usually only applicable to full-time students at accredited universities, and not all students will qualify.
However the car-question is dealt with, parents should be careful not to let their child's coverage lapse, even if the student isn't driving. Reinstating coverage after a lapse is expensive, and sometimes difficult.
HOMEOWNERS
The nice thing about most homeowners policies is that the property doesn't have to be inside the home to be covered. A student will typically have coverage of about 10 percent of the Personal Property portion of the homeowner's policy. So if the parent's home is insured for $100,000, the student will be covered up to $10,000. That's usually enough to cover belongings that might be damaged by a dormroom fire or leaking pipe.
Students with certain expensive items such film or music majors with their own instruments or equipment may need to get additional coverage in the form of a "rider". Fine jewelry and computers may also need separate coverage.
Renter's insurance is also an option if the parent's policy doesn't cover the student's needs.
Students should photograph and inventory any valuable or expensive belongings before they leave for school, and this record should be on file with the insurance agent.
A final word of warning for new students, damage to dorm rooms or rented apartments is not usually covered by any homeowners policies, so if a drunken roommate falls through a wall during a wild party, the cost of repairs will not be covered!
HEALTH
Most colleges and universities have on-campus health centers, but students who wish to continue seeing their own doctor can still be covered by a family health plan until the age of 26, based on The Affordable Care act, also known as the new health care reform laws. Students might also explore options offered by their University and or their University system as many times they have exclusive programs available to students.
Out of state students can find health services in addition to those mentioned above by consulting with a local insurance agent who can provide information and options on health insurance products specific to that local market.
Timothy Gaspar Insurance Services brings creative protection solutions to Los Angeles residents and business owners. Specialties include casualty and property insurance, estate and collectibles coverage, identity theft protection, even kidnap/ransom policies. For more information, please contact Timothy Gaspar Insurance Services, 6345 Balboa Blvd. #290 Encino, CA 91316, or call (818) 609-7575 ext. 260. Email: tim@gasparinsurance.com
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Contact: Elana Scherr– Kahn Media
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