Do I Need to Adjust My Insurance Coverage When My Child Goes to College?

Sending your child off to college is a significant milestone that may come with a mix of emotions and a lengthy to-do list. One item that should not be overlooked is insurance coverage.

As your child embarks on this new journey, it’s essential to review and possibly adjust your insurance policies to ensure you, your family and your financial interests remain appropriately covered.

Health Insurance Considerations

Many universities require students to have health insurance, and some offer student health plans. However, it’s often more cost-effective to keep your child on your family health plan.

Under the Affordable Care Act, children can stay on their parents’ health insurance until they turn 26. But remember to check whether your plan’s network extends to the area around your child’s college, especially if it’s out of state.

Auto Insurance Changes

If your child is taking a car to college, they’ll need to be insured. Rates could change based on the car’s location, especially if the college is in a city with higher accident rates or it’s a significant distance from home.

When a student enrolls in college in a different state, you may also need to comply with different legal requirements. If your child is not taking a car, you might be eligible for a discount on your auto insurance.

Homeowners/Renters Insurance Needs

When it comes to protecting your child’s belongings at college, your homeowners insurance might extend to their dorm room. However, coverage limits may be lower for belongings located off-premises.

If your child lives off-campus, consider getting a separate renters insurance policy. It’s relatively inexpensive and can cover personal property, liability and sometimes even additional living expenses if the rental becomes uninhabitable.

Life Insurance Options

While it’s a topic no parent likes to think about, it’s worth considering a life insurance policy for your college student, especially if you’ve cosigned for student loans.

Federal student loans are typically discharged upon death, but you may require financial protection if your child takes out private loans. The right life insurance policy can protect you from being saddled with these outstanding debts should tragedy strike.

Ensure You Have the Right Coverage

As your life changes, so do your insurance needs. Sending a child off to college may be one of the biggest shifts in the daily lives of you and your family, and it’s one that may require careful reassessment of your coverage.

At GEC Insurance Services, we’re proud to guide you through this time and ensure you, your children and your assets remain financially protected. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.