Teen is Going to College

The moment’s come. The bags are unpacked, the bed is made, pictures are on the wall, and the snack-shelf is fully stocked. It’s time to say good-bye. And in your stomach, you feel an odd mixture of pride and joy, anxiety, and…sentimentality. Can this bright young college student who is positively vibrating with excitement REALLY be your little one who just learned to walk?

It’s hard to let go.

But as a parent, you’ve spent the last 18 years raising your child to be ready for these first steps into a life of their own. And you did a great job – otherwise, they wouldn’t be here.

Still, you want to make sure they're fully protected as they sail off with their wishes, dreams and hopes.

Clarke Insurance can provide you with guidance on what insurance you'll need and what you won't need for this life altering event. Following are some points to consider when it comes to your college student's insurance needs:

• Auto Insurance
• Homeowner’s or Renter’s Insurance
• Health Insurance

Auto Insurance

You might think that if your student goes away to school and doesn’t take a car, you can drop him from your auto policy and save some extra money. But what if he comes back for Christmas break and wants the car to visit friends? Or, what if he is away at college and his friends ask him to be a "designated driver" one evening?

If your student doesn't take a car to school, we recommend that you keep him listed on the policy for a number of reasons:

• He’ll be fully protected if he returns home for a weekend visit and wants to drive.
• He will have insurance protection when he’s driving a friend’s car while away, and that vehicle isn’t adequately insured.
• Even if he doesn’t take a car to school, he’ll be fully protected if he’s hit by a car while walking or bicycling, or while being a passenger in somebody else’s car.
• Keeping him on your auto policy maintains continuous insurance coverage, which may be beneficial when he gets his own auto insurance policy.  It is estimated that for every dollar paid as a temporary driver under you policy it will save him $2 to $3 in premium later.  

It is usually much more expensive for young divers and students to have their own policy. 

Full-time college students can usually remain covered on their parents’ auto policy if their primary address is the parents’ house, even if they attend college out of province.

If your student owns the vehicle and holds the title, they'll need their own auto policy.

Please remember that each jurisdiction in Canada and the US may have rules pertaining to employment.   For example many provinces say that once you are employed for 90 days (full time) you must insure your vehicle in that jurisdiction. Summer jobs for University students can exceed that 90 day threshold.    If your child is working during the summer, out of province, be aware of this rule.  

Clarke Insurance specializes in properly insuring your college student.  We will review your situation and make sure all coverage is current and adequate.  

Homeowner’s or Renter’s Insurance

You've bought your daughter a brand new laptop computer and a printer as a going away present. She's going to the University as a full time student. Will these valuable electronics be insured from theft, vandalism or a fire?

If your child continues to live in your household, his or her belongings are covered under your policy.   
If your child stays in a dorm room on campus and you, the parents, have renters or homeowner’s insurance for your home, your insurance policy will extend to cover their belongings, usually up to $10,000 or $15,000. 

Keep in mind that coverage is subject to your renter’s or homeowner’s policy deductible, usually $500 - $1,000.   However, you can schedule the laptop (and other belongings) on your home owner's policy with a much lower, or no deductible.  This is particularly desirable for those items that are always being transported and used by your teen and are much more susceptible to loss and damage.  Personally we scheduled my son's camera which is valued at $2,000 with no deductible at a cost of $40 per year.  In my mind that is a good deal largely because of the $1000 deductible under our home policy.  He takes his camera everywhere and is part of his education so he would have to replace it.  

Please note: Will your child return home or travel abroad for longer periods of time as part of their college experience? If they leave their belongings behind in a dorm or fraternity / sorority house for more than 30 days, your homeowners policy will no longer cover those belongings.

In that situation, it's important to either ship the belongings home during extended absences or temporarily store the items in a commercial storage facility.  Coverage can be obtained for items in storage. 

If your college student lives in his or her own place off-campus, or shares an off-campus house or apartment with friends, things get a little trickier. You might have to set up a separate renter’s policy for your student. That will not only cover his or her "stuff", but also provide liability coverage in case somebody gets hurt in their place. In addition, many landlords have made renter’s insurance a requirement of the lease. Renter’s insurance policies are usually quite affordable, generally less than $15 per month.

Depending on your child’s particular situation, there might be some other variables that need to be considered.This is where an independent insurance agency (like us!) really comes in handy!  

If your student is about to move into his or her own place, give us a call.  We can help you navigate through the insurance-jungle and make sure you get the best value and protection for your money.

Be aware there may be other stipulations under your policy.   A married student may require their own policy and your home owner's protection may not extend to cover them.  It is all in the wordings of the policy.   Once your child is 25 years old they may not have coverage even if they are a full time student.   

Health Insurance

Picture yourself getting a phone call one quiet winter evening.   It's your 19 year-old college student son. He and some friends went on a skiing trip to a ski resort. While skiing for the first time, he broke his collar bone.

He needs you to tell him what to do.  

Did you get him to buy health insurance?   . If your child is attending school in another province or Country he may need Student Health Insurance.  Clarke Insurance can help.   306-821-1620

Please note: If your child travels while in school, make sure you check if their health insurance coverage extends to overseas travel. Many times it does not.