Back To School – College Bound

Insurance Tips For Back-To-School Time

College is expensive enough without finding out too late that an accident or theft isn’t covered under your current auto insurance or home policies. So, as you get your children ready to head off to school in the fall, there’s one vital “to-do” to add to your list (other than writing that tuition check): a review of your insurance coverage.

It’s important to keep in mind that policy language varies from state to state, and there are never “one-size-fits-all” situations, but below is a general guide. If you have questions or want to go over your specific insurance needs, don’t hesitate to contact us!

HOMEOWNERS INSURANCE (May Vary By Each Policy)

• Coverage of personal property: Most homeowners policies provide 10 percent of Coverage C (Personal Property) for property owned by an insured that is at a residence other than the insured’s.  For example, if the contents of a policyholder’s home are insured for $200,000, a student’s property up to $20,000 would be covered if living in a dormitory – provided the damage is caused by a covered peril and the student still meets the definition of an insured.

•  Certain items, such as jewelry or expensive electronics, may require special coverage, or a “rider.”
• Liability coverage: There usually is an exclusion for damage to property rented to an insured, so generally, damage to a dorm room or apartment would not be covered.

• Ensuring adequate coverage:  Contact us to get specific answers and information about your coverages. Also, it’s a great idea to create an inventory of the items your student is taking to school, as well as keeping photos of and receipts for the items.

• Renters insurance: If your student’s needs can’t be met under your current Home policy, don’t forget Renton renters insurance. Landlords’ policies generally only cover the structure, not the renters’ possessions. The other benefit to your student obtaining their own renters insurance is that if they do have a loss, and they claim through their own renters insurance, your future home insurance premiums won’t be impacted by it.

AUTO INSURANCE (May Vary By State)

• Coverage without a car at school: If your student will continue to drive while at home on school breaks, they should continue to be listed on your auto insurance policy. If they are attending school more than 100 miles from home, and are not taking a vehicle with them, depending on the car insurance policy, they may qualify for a distant-student discount.

• Coverage with a car at school: In most instances, a car registered to parents and listed on their Renton auto insurance policy will be covered if used by a listed student away at school. But you should make sure that your car insurance carrier writes coverage in the college’s state and location. And note that a change to the principal garaging location of the vehicle could result in a change in premium.
• Driving a friend’s car at school: Students are generally covered for liability while driving a friend’s car if they are listed on their parents’ car insurance policy and do not have regular use of that friend’s vehicle. The coverage would not cover physical damage to the car itself, and it would likely only be secondary, as the carrier for the friend’s vehicle would likely be the primary coverage.
• Coverage discounts: In addition to the possible distant-student discount mentioned above, students may qualify for a good-student discount. To qualify, most insurance carriers require that a student be enrolled as a full-time student at an accredited college or university and meet specific academic qualifications, typically a 3.0 GPA. Also, drivers under the age of 21 who complete a driver education course may be eligible for a policy discount.

Going away to school is an exciting and challenging time for both students and their parents. Making sure you have the right auto insurance coverage can help you protect your assets as you invest in your child’s future. We’re happy to discuss your coverage and options — give us a call or stop by!