July is the perfect time to make sure your student is covered before move-in day arrives. Whether they’re heading across the country or staying close to home, college students face new risks and responsibilities that shouldn’t be overlooked. Let us break down the types of insurance every student and their family should consider before the fall semester starts.
Renter’s Insurance
If your student will be living off campus or in a dorm renter’s insurance is highly recommended. It protects personal belongings such as laptops, furniture, and clothing from risks like theft, fire, or water damage. Many parents tend to believe their homeowners policy covers their child’s property, but that coverage is often limited. Be aware that programs provided by an apartment complex may not offer the best coverage to protect you and your student. Ask us to review the coverage for you.
Auto Insurance
Whether your students will be driving at school or leaving a car at home, you should review their auto coverage.
Start by checking whether the school has any vehicle-related requirements. Some colleges require a parking permit or proof of insurance to bring a car on campus.
Next, talk with your student about the seriousness of loaning their vehicle to friends or roommates. If someone else drives their car and causes an accident, your insurance could be held responsible. The same applies if your student borrows someone else’s vehicle. In this case, they may not be covered in the event of an accident.
Many insurance carriers offer two important auto discounts for student drivers:
- Good Student Discount
- Eligibility: This discount is typically offered to full-time students who maintain a certain academic standard, usually a B average or higher (often a 3.0 GPA on a 4.0 scale). You’ll likely need to provide proof of academic achievement, such as a report card or transcript.
- Savings: Good student discounts can reduce auto insurance premiums, potentially saving anywhere from 5% to 25%, depending on the insurance company.
- Student Away at School Discount (also known as Distant Student Discount)
- Eligibility: This discount is available for students attending school a significant distance from home (often 100 miles or more) and who don’t have regular access to a car while away.
- Savings: This discount reflects the reduced risk associated with the student not driving regularly. While specific savings aren’t always advertised, they can be significant, potentially ranging from 10% to 30%.
The right coverage depends on your student’s situation, school policies, and driving habits.
Umbrella Insurance
College students face new responsibilities and liability risks. An umbrella insurance policy offers additional liability coverage beyond existing auto and renters or the parent’s homeowners policies. It provides additional coverage against large claims or lawsuits and helps safeguard your financial future. This added coverage is especially valuable for families with teenage drivers or college students living independently.
Life Insurance
Life insurance may not be the first item on your college checklist, but it can be a wise decision for both parents and students. If you have co-signed student loans or your child relies on your income, a policy ensures financial stability in case of an unexpected event.
TWFG – Denise Davis Insurance is here to help you review your policies, identify potential savings, and ensure your student is ready for this next chapter.
Contact us to schedule your back-to-school insurance review.