As a new school year begins, one important concern is commonly overlooked—protecting the possessions of college-bound children. While some parents forget about this important task, others may receive huge savings.
Vehicle coverage
The rage among college students is the motorized scooter. However, this is also one of the easier items to steal or damage. Parents should make sure this is covered in case of theft or an accident. Like a car, scooters must be specifically insured – they don’t fall under homeowners, renters or auto policy for another vehicle. General Casualty, for example, insures scooters under its motorcycle policy.
The decision of whether or not to keep a car on campus carries financial side effects, as well. To ensure parents receive the best deals, General Casualty provides advice on how to get the most value out of their policies.
- Make sure policies are up-to-date with the student’s correct address. You may benefit if your student moves to an area with lower rates.
- The student may be eligible for a discount if they leave their car more than 100 miles away from their primary place of residence. For example, if their dorm is more than 100 miles from their parents’ driveway, you may be eligible for discounts.
- If the student elects not to bring a car to school, you should consider reducing coverage or changing the student’s driving status from primary use to occasional use.
- Remember, the Good Student Discount isn’t just for high school students. For example, full-time students who are less than 25 years old may qualify for General Casualty’s Good Student Discount.
Personal property coverage
Many possessions students bring to school are covered under their parents’ homeowners policies, but others may require the student to purchase renters insurance. Parents may want to consider insuring high-value property separately, sometimes called scheduled or floater coverage. This coverage applies to items such as bikes, jewelry or electronic equipment, if their value exceeds the limits of the homeowners or renters coverage for those items.
Insurance companies vary in their definitions of who and what is covered under their policies. Talk with your insurance agent to determine whether your student needs renters insurance, or if your homeowners policy is adequate. Below are questions to ask to determine the best option:
- Is my child still considered a “resident of the household” under my current policy?
- Is their dorm or apartment an “insured location” under my policy?
- Does it matter whether my student is full-time or part-time?
- What impact does my tax status or my student’s marital status have?
For more information please contact Anne M. Smith.