Insurance For College-Bound Kids

HARTFORD — Your child is headed off to college and you have thought about everything he/she will need: food, clothes, books, phone cards. “But, have you thought about insurance?” asks the Professional Insurance Agents of Connecticut Inc.

Health insurance is a must for the college student, according to PIACT. Most group health plans continue to provide coverage for single, financially dependent, full-time students until they reach age 23. If this is the case, make sure your child is aware of his/her coverage before leaving for school and has the necessary insurance cards or numbers needed. Also, if your health insurance plan involves co-payments, be sure to explain this to your child so he/she knows to bring the payment when visiting a medical provider.

Under an individual policy, however, coverage usually ends when a child turns 19, even if the child is a student. That child often has the right to purchase the same coverage for him or herself. Check with your child’s school; many colleges offer student health insurance.

“You don’t want to wait until your children become ill or have an accident miles away from home to find out whether they’re covered,” said John DiMatteo, CFP, CCPS, president of PIACT. “This is something parents need to take care of before their child leaves for college. Check your insurance policy to see what kind of coverage they’ll have and discuss it with both your agent and your child before he or she needs it.”

Another thing to think about is insuring your children’s valuable possessions. “Check with your homeowners policy to see if the things your child is taking to college are covered in case they are damaged or stolen,” says Mr DiMatteo. “Prepare and maintain a list of possessions such as computers, televisions, stereos, cameras, and jewelry, including the original cost and purchase date. If the value of these items exceeds the off-premises coverage limit of your homeowners policy, purchase additional coverage.”

Keep in mind that if a student wants to be protected by a parent’s homeowners policy, the student must maintain residency in the parent’s household. Some insurers expressly define what “residency” means in their policy, but many insurers leave room for interpretation. Before a claim occurs, be sure to find out what criteria your insurer uses to determine whether your student child is still a resident of your household.

Auto insurance is another consideration for college-bound kids. If your child is attending school more than 100 miles from home without custody of a household vehicle, you may be eligible for a reduction in your auto insurance premiums. If your child has custody of a vehicle at school, then the insurer may want to rate your insurance based upon where the vehicle is garaged. And, don’t forget to instruct your child on what to do in case of an accident and where the important documents (i.e., insurance card and vehicle registration) can be found, suggests PIACT.

This also is a good time to review your life insurance policy. “Now that your child has reached this milestone, you may want to be sure that his or her college education won’t be jeopardized if something happens to you,” says Mr DiMatteo.

It is a good idea to contact your professional insurance agent whenever a major life change occurs; college is one of them. Parents and students should be fully aware of the options available to them.