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By Hannah Leung
After packing and moving to college, the last thing most parents and students worry about is insurance. But taking the time to review the kinds of insurance a student should have can pay off in the long run, ensuring that the college student's health and property are properly covered.
Health Insurance
Medical policy plans will usually cover children up to the age of 24 years old if the child is a full-time student. But if the student is attending an out-of-state school, a parent’s policy may not guarantee full coverage.
If your student can use your health insurance plan, do some research, especially if you’re covered by a Health Maintenance Organization (HMO) or Preferred Provider Organization (PPO). These plans typically have approved health care providers, or in-network providers. You need to be sure that the student's college is in a place where there are in-network providers. Going out of network can mean your costs aren't covered, which can quickly become expensive.
If the student goes to a school that isn't served by their parents' managed health care provider, call the insurance company and ask about provisions in cases of emergency. Give the student a copy of his or her medical plan card, so arrangements can be made easily while the student is at school.
If you don't have medical coverage or your coverage is limited, consider buying health insurance through his or her college. Most student health plans have minimal eligibility requirements and merely require the student to be full-time. You can often find lower insurance rates for your student with the college's group plans than with individual policies.
All colleges vary, so ask for more specific information on their health plans.
Auto Insurance
Most likely, your family auto insurance policy will cover a car that the student takes to college, as long as the vehicle is registered with the parent as the owner. However, there might be a difference in premiums between the student's home and the college, so make sure to consult with your insurance company.
And if the student is going to a college that's at least 100 miles from home and isn't taking an insured vehicle, you might be able to reduce your auto insurance premiums.
In the end, check to see if it is really worth the hassle of bringing a car on campus. Where is the college located? Is there public transportation? Do other students have cars on campus? Do you have to pay for parking? In most scenarios, the cost of keeping the car home and not paying for a difference in premiums is easier and cheaper. But always be sure to ask your insurance company.
Renters/Property Insurance
Renters insurance is often neglected by both students and parents, but if the student is not covered under the parents' policy, you could be liable for big losses.
Your student is packing up his or her life -- and this means valuable personal items like DVD players, laptops, and televisions. Such items are often the first thing to be vandalized or stolen. And regardless of whether the student is living in a dorm or off-campus housing, the college/landlord does not cover the loss of these items in case of fire or theft.
Before investigating renters insurance, first check to see if your homeowners policy covers the student’s items. The policy varies depending on where the student lives. For example, most policies cover up to a certain percentage of the personal property limit for a student living in on-campus housing.
However, for students living in off-campus housing, many policies will not cover the student. If this is the case, the student will need to purchase a separate renters policy. Research online and check with local insurance companies for premium costs and coverage.
Renters insurance policies are generally affordable, costing as little as $150 - $250 per year and it provides liability protection, as well as protection for your stuff.
In the end, even if you decide purchasing property insurance is not necessary, take preventative measures, like making an inventory of all the student's belongings in case you ever have to make a claim or file a police report for stolen goods.
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