College Bound Kids Mean Parents Need To Re-Evaluate Insurance

DETROIT (WWJ) - As students head to college, the Office of Financial and Insurance Regulation (OFIR) says parents and students should review their family's insurance policies.

Exactly what is and what isn't covered under current insurance for your college bound student. Students that will be living on campus or renting apartments should have enough insurance to cover things like theft of computers or other valuables.

And what if there's a fire. What's covered?

Parents should consider adding renters' insurance through their current homeowners' insurance provider. And auto insurance: There might be different insurance rates, based on the city or state the student is attending college.

Here are some considerations and tips from OFIR for parents and college students:

College Students and Renter's Insurance

Parents should check their homeowners policy to see whether it will cover a college student's possessions; TV's, computers, cameras, to name a few. Furthermore, if students live in an off-campus apartment, parents should consider purchasing renter's insurance through their existing homeowners insurance provider.

For OFIR's resources on homeowners and renter's insurance.

College Students and Auto Insurance

Parents and college students should do some homework regarding auto insurance. If a college student is going to be using the family vehicle when visiting home, or if the student will be taking a car with them to school, parents should check the specific rates for the college's city and state before deciding whether to keep their child on the family's auto policy.

In addition, the insurance company should be notified each semester if the student maintains good grades, as that accomplishment might lower premiums.

To control costs, parents should also ask about an "accident forgiveness" clause that promises not to raise premiums if a student gets into one minor accident.

For OFIR's resources on auto insurance.

College Students and Health Insurance

Following the enactment of federal health care reform, nearly all young adults up to age 26 can now stay on their parents' insurance. Coverage with the new law extends benefits to adult children regardless of marital status, financial dependency, enrollment in school or residency.

While students are away at college, it is important to check whether the campus health facility, local physicians and hospitals accept the family's insurance coverage. If not, it might be advisable to purchase a student insurance plan through the college. Be sure the student has a copy of the relevant insurance cards and knows about obtaining referrals and approvals before seeking treatment.

For OFIR's resources on health insurance.