As you’re busily preparing for the start of a new school year, don’t forget about your insurance! Although it’s not on any supply list, it probably should be. When your kids start driving and/or go away to college, your home and auto coverage needs change. Fortunately, we can help you adjust your policies accordingly and continue your protection anywhere. Here’s what you need to know:
Your homeowners’ insurance may provide some coverage.
Depending on your particular policy, your child may continue to be covered, even if they don’t live at the same address. There’s typically a provision for residences (other than the primary), such as a dorm room or off-campus housing. That’s the good news. The bad news is that this type of additional personal property protection also generally has a much lower limit in place. Typically, it hovers at right around 10 percent. Meaning, if you have $100,000 of coverage on your home, your student has a maximum of $10,000 he/she can claim. So, often more expensive items would require scheduling or other supplemental coverage. Or you can just add a renter’s insurance policy while they’re away at school. This type of insurance is inexpensive and well worth the peace of mind it brings. Keep in mind, liability coverage would likely be excluded, no matter what route you take.
Even if your child doesn’t have a car, he/she could still need auto insurance.
Some colleges don’t allow students to bring a car with them. Other campuses are just so well- contained that they simply don’t need one! Still, if they have a license, they may be driving from time to time. Therefore, you should leave them named on your policy. This will protect them (and you) when they’re home from break, driving around. Or, even if they’re at school, borrowing someone else’s vehicle. As long as it’s not “regular use,” then they wouldn’t specifically need to be on a policy associated with that particular car. You may even qualify for a distant-driver discount in this case! Make sure you ask us about it when you call in to update your coverage.
Be sure to update their address once they leave for school!
Especially if your college-aged student is taking a vehicle with them, you should notify us as soon as possible. Not only will their notifications change slightly, but your premium could adjust too! Technically, you can keep your car registration and everything else the same, but the coverage needs to be written for the college’s state/location. Since that’s where it will be for the foreseeable future—and where it will be on the road—the policy needs to conform to local laws. At this point, you could see your pricing change, but that will largely depend on the state in question.
Back-to-school shopping can be a lot more comprehensive than you thought! As you’re getting everything else together for the start of a new year, reach out to Freedom Insurance Agency. We can advise you on how to make your current coverage work for young drivers and suggest any changes that would best fit your situation. Our experienced staff can help you with homeowners’ insurance, renter’s insurance, auto insurance, and then some. But summer’s almost over, so contact us today to get this process started!