It seems like only a few years ago when your child was still in diapers, crawling all over the house. Now you’re ready to send him or her off to college, embarking on a new chapter of their lives. After you wipe away your tears and finish reminiscing, spend some time reviewing your insurance policies with a trusted agent. You’ll want to make sure your coverage is up to date now that your child is out of the house.
Most likely you have an auto insurance policy with you, your spouse, and your children listed as drivers. Now that Adam or Betsy is out of the house, you have a few different options to properly cover you and your loved ones.
Some insurance companies offer an option of assigning a separate zip code while your child is away at school with their vehicle. This way, your child can remain on your auto insurance policy in case they come home and drive your car. He or she will still be covered if they get into an accident in your car and your premium will be more accurate since it will be based on where your child is actually driving his or her car.
You can also purchase an individual insurance policy with your child listed as the driver. This will ensure that any accidents or tickets he or she receives will only affect their own policy and will not affect your policy’s premium. You will also be able to separate your limits so that your coverage limits are not depleted in the event of an accident. Be sure to consult your agent about all applicable discounts such as good student discounts to maximize your savings.
If your child is opting to leave the car at home, you can exclude him or her from your policy. Just remember to add your child back to your policy if they come home and intend to drive your vehicles. If you forget to revise your policy and your child gets into an accident, there will be no coverage since he or she is excluded from the policy.
Homeowners & Renters Insurance
Your homeowners insurance policy will provide some coverage for your child’s possessions when they move away but only up to a limited dollar amount. Most policies have a limit between $5,000 and $10,000 for personal property away from premises (away from your home). If your child needs more property coverage, he or she can also purchase a renters insurance policy to cover both his or her liability and personal property.
Personal Umbrella Insurance
If you have a personal umbrella policy in place, it’s always a good idea to advise your carrier of any life changes. If your child is staying on your auto insurance policy, no changes need to be made. However, if your child is being removed or excluded from your policy, just note that your personal umbrella insurance policy will no longer cover your child.
Depending on what school your child will be attending, many colleges offer student health options that can potentially save you money and offer coverage more suited for his or her needs. Monica, our health insurance agent can review your current plan against the student plan for free and make a recommendation. She can be contacted directly at 916-769-5948 or at firstname.lastname@example.org.
Back to school season is an exciting time, especially for those who are college-bound. Take one more thing off your mind by consulting with your insurance agent now about changes to your policies. We wish you and your loved ones nothing but the best for this school season.