Do you have a child in college or heading out on their own? These life changes require a review of your insurance and in many instances may require purchasing insurance for the young person.
Here are some tips for insuring the college student:
Does the family plan have good coverage for the school’s area? If so, then your student probably doesn’t need health insurance from the school. Otherwise, consider purchasing the student health coverage particularly if it’s inexpensive. Make sure the student is still covered by major medical either under your policy or the school policy.
If the student owns his or her own car, then he or she should already have insurance. If the student doesn’t have a car at school, then you may get a discount on your insurance—usually called distant student. Good grades can provide another discount.
Most homeowner’s policies cover a child’s belongings at school if they live in school housing. With all the electronic equipment students have these days it’s smart to make sure that they are properly covered. Students that live off-campus probably need renters insurance policies.
Going out on your own can be an unsettling time and the last thing most young people think about is insurance.
Here are some tips for the young person leaving the nest:
By federal law, your parents’ health insurance policy covers children up to the age of 26, but it doesn't necessarily cover pregnancy. If your employer has health insurance, you’re "covered." If not, see the section in the guide on providing your own health insurance. The plus for you if you must provide your own health insurance is that premiums for young adults are often much lower than for other adults.
Personal property insurance
If you moved out of the family house, then you should get rental insurance for your rented apartment. If the modest premium is a stretch, maybe your parents will make it a “going away” present.
The type of car you drive directly impacts how much you pay to insure it. Check out the StreetWise Auto Buying Guide before buying that new car.