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Students Away at College? Insurance Issues To Consider

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Going away to college or university, especially for the first time, is an exciting life event for both parents and students. With so many changes and new things to plan for, insurance issues are often forgotten. As an independent agent, you can play a vital role in your policyholders’ lives by educating them about critical insurance issues to consider when their student is away at school.

Read on to learn more about how to help your policyholders through the insurance issues associated with this major life event.

 

Insurance Issues to Consider With College Students

Parents usually have lots of questions when their child is moving away temporarily to live at college. In addition to the usual concerns over costs, safety, and quality of educational content, parents also wonder about their changing insurance needs. Help relieve some of their concerns by meeting with them proactively as their children approach college age.

Talk with your insureds about the different types of insurance issues they may face with a student away at school. Start with the basics of auto insurance coverage. If the student is not bringing a car with them to college, some insurers offer a discount to policyholders when the child is away at school or remove the child from the policy as a listed driver. Help your insureds notify their carrier and submit proof if necessary. Many insurers have digital portals where you can update this information.

Be sure to follow up with your policyholder or their insurer to check that the discount has applied once the student is back at college. You can log into the digital site or check billing statements.

If the student will be taking a car with them to school, help your policyholders understand the new insurance concerns that arise. If the student is residing in another state for school with their car, they may need to change the registration. Even if they only move locally within the same state, insureds still must notify the insurance carrier. The rates may change drastically depending on the new garaging information so be sure to prepare your policyholders for this potential price shock.

The next insurance issue many people consider is protection for the student’s property while away at school. While many college students travel light, they will likely still have a laptop, tablet, headphones, mobile phones, and other expensive electronics. If your student is an athlete or musician, they may bring expensive sports gear or musical instruments to school.

A typical homeowner’s policy usually covers students living temporarily away from home while at college. The coverage extends for personal property to the student’s dorm, but insurers limit the amount of coverage available. Work with your policyholders to help them calculate if the personal property coverage is sufficient for the items their student will have at school. With expensive electronics and other items, the coverage limit may not be enough for many students.

Students who live off-campus in their own apartments often have different insurance issues and needs compared with a student living in the dorms. Many insurance companies require a student living off-campus to have a renters insurance policy rather than relying on coverage from their parent’s homeowner’s policy. Check with your carrier partners to understand their limitations and help your policyholders understand how to best insure their student’s personal belongings.

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External Links:

  1.   https://content.naic.org/consumer/auto-insurance.htm
  2.   https://www.biginy.org/eo/TLC/2021/080321.aspx

3. https://www.iii.org/article/your-renters-insurance-guide

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