Tips for insuring students studying away from home
It probably seems like yesterday when you took your child to school for the first time.
Now, they’re leaving the nest to study at college or university. Where did the time go?
As a parent there’s lots to take care of as you help them get ready to move. One of the things that should be on your to-do list is insurance.
Depending on whether they will live in residence or off-campus, there are various ways to protect your child, and it's important to advise your insurance broker of the changes.
How it can affect your auto insurance
Typically, many students are considered an occasional driver on their parent’s policy. If they own their own vehicle or take one of the family cars to where they will be studying, they would be rated as a principal driver in the new postal code of the area they’ve moving to. That and their driving record will dictate the rates.
In all instances, your insurance broker must be advised of the change of address, including if it is out of province.
If they are studying in the U.S., having an Ontario auto insurance policy means you’re still covered while travelling here and the U.S. – for a period of less than six months. Your child will need to prove they are still a resident of Ontario and, as such, qualify for Ontario auto insurance. As a result, the vehicle should be brought back periodically during reading weeks, breaks or other visits. Keep receipts when getting an oil or tire change while back home so can show your insurer proof of being in the province.
With most insurers, having the car out-of-province for longer than six consecutive months will void the terms of the policy. You may be required to find a new insurance company, such as one that allows more than six months of consecutive travel. Consult your broker regarding companies that offer this.
Ways to save on premiums
There are some discounts that may help you save on vehicle insurance:
- Student Away from Home- If your child is attending college or university away from home, they’ll likely be driving less. Most insurers will offer a discount for a child you have listed on your policy as an occasional driver.
- Good grades– Many insurers offer a small discount for students who work hard and get good grades.
- Driver’s Ed training– If your child has taken an approved driver’s training course while learning to drive, they can qualify for additional savings.
Also, you may get a multi-vehicle discount if the vehicle they are taking to school is in your name and listed on your existing auto insurance policy.
Home insurance considerations
Dealing with an auto insurance policy isn’t the only consideration. You should speak with your broker to see if your child qualifies under your existing home insurance or if you need additional coverage for them.
Expensive laptops, iPads, and cellphones are part of post-secondary life. Most colleges and universities stipulate in their residency agreement they are not responsible for stolen property and liability coverage for injury or damage.
Western University’s Move-in and Planning Guide, for example, tells incoming students to get insured before heading to campus.
If your child will be living off-campus, their landlord may require them to get tenant insurance. This affordable coverage covers:
- Contents:Theft of items or if they are damaged by flood or fire up to a certain limit. And if your child’s bike is stolen from outside the library, for example, tenant insurance would help with the replacement cost.
- Personal Liability:Covers against injury claims, such as slip and falls, and costs associated with lawsuits.
- Living Expenses: Generally, it covers temporary accommodations and expenses if your child cannot live on the property due to a covered loss.
If multiple roommates are sharing one property it’s important each has their own insurance coverage, and everyone is named on the lease. If only one person is listed on the lease, he or she will be held liable in a case of damage or injury.
It’s important to note if parents are extending their home policy to cover their child any claim that is made would count against their policy and affect a claims-free discount.
Whether or not your child is covered by your home insurance or has their own tenant policy, take an inventory of what they’re bringing to school. If something happens, it will prove invaluable.
Consider Umbrella Insurance
When students are away at school anything can happen. Think parties, accidental injuries, fender benders and more.
Standard homeowners and auto policies provide only minimal liability coverage. A personal umbrella policy provides extra liability protection by extending the limits of those policies. It can fill in the gap to ensure you won’t be paying out-of-pocket for expenses such as legal fees, medical bills, and compensatory damages. It isn’t a standalone policy and generally a minimum level of home and/or auto insurance is required before umbrella insurance can be purchased.
Keep in mind that adding any coverage will increase your premiums. Umbrella policies with $1 million in coverage typically costs between $150 to $300 a year.
If you have a child attending college or university away from home, an umbrella policy represents extra peace of mind. It can keep a family from going bankrupt over something like a frat party gone wrong.
Alleviate your worry and stress by knowing they are protected while they study away from home. Talk to your broker today.
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