Sending kids off to college in August is an exciting, yet sensitive, time for many families. Parents are always looking to give the right balance of support and help without stepping over the line into hovering or smothering. It’s especially important to find that balance when making sure your kids have the right insurance policies and know how to use them.
Since there are a lot of adults who aren’t totally sure how their insurance works, this can be a challenge. But these conversations really make the difference in getting your young adult through a medical event, property problem, or car incident.
What Insurance Policies Does My College Student Need?
As an adult who is still a tax dependent, your college student’s insurance needs will change a little bit from when they were a minor in high school. They’ll remain on your policy for some things, but they should have their own for others.
Medical Insurance
While your college student should remain on your medical insurance, their college could require a separate policy. Some colleges reject the coverage of certain insurance plans and make students buy their chosen policy. The medical services available on campus and at nearby providers are then covered by this policy. If parents can show that their child’s health insurance covers medical care local to the school, additional requirements might be waived. Even colleges that do not require additional insurance plans usually still charge a student health fee to cover on-campus services.
Auto Insurance
If your college student will not take a car to campus, check to see if your policy allows for an “away at school” discount. This discount is based on the assumption that your child will be too far from home to drive the cars covered under your policy. Check with your agent to find out if your car insurance gives a grade-based discount, and make sure your student is aware of that incentive. If your student will be taking their car to school, contact your agent to confirm that they have the right coverage for the car’s location and frequency of use.
Renters Insurance
College kids who live in a dorm do not need renters insurance because that property is covered under their parents’ homeowner policy. If they live in an off-campus apartment, they absolutely need a renters policy. That policy protects their belongings in case of fire, theft, or vandalism. Even if your student doesn’t have a lot of valuable stuff, the policy ensures that they can buy a new laptop, small kitchen appliances, or electronics if something goes wrong in their temporary home. It also gives them liability protection. As we all know, college students don’t always make the best decisions. If your student damages someone else’s property, or if someone gets hurt in their apartment, renters insurance will cover the claim. Put this policy in their name to make sure that claims will not affect your homeowner policy. In some cases, your homeowner insurance might still provide some coverage, but it will be far less with a renters policy in place.
Supplemental Insurance
Contact your representatives of each policy to discuss supplemental, dental, and vision insurance benefits. You’ll need to confirm that your child is still considered a dependent under each policy, and find out what providers they can see while they’re away at school. Ideally, they will schedule appointments with their doctors at home, but sometimes immediate care is needed.
Life Insurance
If you have never obtained life insurance policies for your children, now is the time. First, the younger someone is at the start of the policy, the lower the premiums. Second, if your worst nightmare comes true, a lack of financial resources will make it all that much worse. Talk to your agent about a policy that you can transfer to your child at a certain age so that they have that protection as soon as they are completely independent.
If you haven’t talked to your insurance agent in a while, give them a call to schedule a review. They will help you identify any policy changes that will keep your kid protected at school.
Teach Your College Student How to Use Their Insurance
Knowing how to use insurance benefits is a life skill. Young adults learn this process by trial and error all too often, which can make their lives more expensive and complicated than necessary.Never assume your student knows what insurance policies they have or how to use them unless you have had a verbal conversation about it.
First, consider making a chart with all of the policies that include them. Label the type of insurance, the insurance company, policy number, important phone numbers, and the local providers they would normally call. On a medical policy, this is their primary care doctor. On an auto or renters policy, it’s the insurance agent.
Next, review the issues that are covered under insurance and how to use their policies. On the medical front, make sure they understand the difference between going to the doctor versus urgent care versus the emergency room. If you have supplemental benefits, like an accident or hospital indemnity policy, go over the requirements for getting a claim approved. For example, your supplemental accident policy might only pay for X-rays taken in a hospital, not urgent care.
With auto insurance, they should have a basic understanding of collision versus comprehensive insurance. If they get a chip in their windshield, do they know what to do next? Do they know what steps to take immediately after an accident? They should know how to call for roadside assistance if their car breaks down. If their car gets broken into, stolen property will most likely fall under their renters insurance or your homeowners insurance, depending on how they are covered.
Speaking of stolen property, items purchased with a credit card might have some insurance protection. There are several credit cards designed specifically for students that feature insuranceor extended warranties, and they offer fraud protection if the credit card itself is stolen. This could prevent the need to file a claim against your homeowner policy if someone steals from their dorm room or car. Compare the best credit cards for students to see what features are available.
Finally, confirm that they have any insurance cards, or copies of their cards, in a safe place for when they need to use them. Have them print a paper copy of their proof of auto insurance to keep in the car, even if they have an electronic copy on their phone. Physical proof of insurance is much easier to locate in a high-stress situation like an accident or traffic stop.
Insurance is Intro to Adulting 101
If you can get through the infinite eye rolls and sarcastic comebacks during your insurance review with your college student, give yourself an A. These conversations aren’t the most fun or welcome, but they are important. While you hope they don’t have to, your child just might thank you one day for forcing them to learn this information.
If you need a little extra help in covering the basics of insurance, bring your college student to a meeting with us. At Smyrl Insurance, we have a lot of experience helping families navigate insurance explanations to the next generation. We would actually prefer to build a rapport with your young adult now, so that the first time we talk to them isn’t right after something has gone wrong. We appreciate every opportunity to educate, nurture, and empower you and your college student on the aspects of your insurance policies that keep you protected. Contact us to review your existing policies, make important updates for major life events, and determine the best products for your family’s needs. We serve clients for homeowner, renters, auto, life, and other types of insurance in Hatfield, Lansdale, Souderton, Harleysville, and throughout the region in Montgomery County and Bucks County, Pennsylvania.
