What College Students and Their Parents Should Know About Insurance

What do college students think about? Parties, having a good time, the opposite sex, financial aid, grades, and selecting a major. Most college students don’t take the time to think about insurance. However, college students living away from home may not be covered by their parents’ auto, property, or health insurance. Let’s take a look at some insurance tips that college students should at least think about.

Rental Insurance

Your parents’ home insurance probably does not cover your off-campus rented apartment. Unfortunately, your landlord’s insurance policy doesn’t cover your personal property. However, in some instances your parents’ insurance policies will provide coverage if you live on-campus.

Renter’s insurance yearly premiums cost around $150 to $200 for $15,000 of coverage for personal property. The Insurance Information Institute reports students’ renter’s insurance covers damages from:

  • Smoke
  • Fire
  • Vandalism
  • Lightning
  • Theft
  • Explosion
  • Windstorm
  • Water (non-flood related)

Renter’s insurance also covers additional living expenses if you can’t live in your residence due to fire damage or other covered losses. Lodging, meals, and other expenses are covered. Low premiums make renter’s insurance a good choice.

Health Insurance

More than two-thirds of college students are covered by their parents’ health insurance plan. According to the Kaiser Family Foundation, a health advocacy organization, 25 states require health insurance plans to provide coverage for dependent children beyond their teens. Most states require the coverage to extend to age 25. This type of coverage may have restrictions such as the adult children must be students, unmarried, or live in the same state as their parent who has private insurance coverage.

Check the regulations by visiting your home state’s Department of Insurance website or by calling the department. When researching, find out if the state insurance regulations are mandatory or if the insurance companies decide whether or not they follow the regulations.

Your parents need to review the rules of their health insurance policy to find out if you have to be a full-time student or at least a part-time student to be covered by their insurance. Find out which healthcare providers work with your parent’s insurance company in your area. If you’re attending college far from home you may not have access to health providers who participate in your parents’ plan. Parents should also ask their insurance company what circumstances cause their child to be dropped from their insurance policy.

Individual coverage: If you’re not covered by your parents’ insurance plan you can purchase individual insurance coverage. Premiums are typically affordable for young, healthy adults. Some insurance companies provide individual health insurance plans targeted at college students who are not covered by their parents insurance plan. Websites such as eHealthInsurance make it easy for students to get quotes for student health insurance plans.

College health insurance: At some colleges the mandatory tuition and fees cover the cost of care for allergies, the flu, coughs, and colds. Other colleges offer students enrollment into health insurance coverage, as well as many other insurance related services. According to the Government Accountability Office (GAO), more than fifty percent of colleges and universities have their own health insurance plan for students. The college plan may offer low cost coverage if you are not covered by your parents’ insurance policy. However, according to Joel Ohman, financial planner and founder of Insurance Providers, an insurance brokerage website, school sponsored plans do a good job handling immunizations, colds, and flus, but they don’t do a good job of covering major medical problems.

It’s optional, but some schools will charge you a fee up-front and enroll you in their health insurance plan unless you choose to opt-out of the insurance plan, submit a waiver, and provide proof of health insurance coverage. According to a study by the GAO, 30% of colleges and universities require their students to have health insurance in order to enroll.

Life Insurance

College students who are married (especially if they have children) along with students who participate in risky activities should consider buying life insurance.

Car Insurance

  • Living with your parents while attending college and remaining on their insurance policy is one of the best auto insurance deals.
  • Many auto insurance companies provide a good student discount for students who maintain a 3.0 or better grade point average.
  • If you drive a short distance to school and to your workplace you may qualify for a low mileage discount.
  • Consider driving an older car. They require less coverage and lower collision limits.
  • If you don’t pay for your car with financing, you may not be required to have collision or comprehensive insurance.
  • Auto insurance companies use your zip code to help determine the risk level. Living in a higher crime area may provide you lower monthly apartment rent, but you’ll have a higher car insurance premium.
  • Many insurance companies offer discounts to college students who carry both car and renter’s insurance with the same insurance company.
  • You can save up to 25% on your insurance premium with college auto insurance discounts.

Insurance coverage is important. College students, with the assistance of their parents, should figure out their insurance needs.


Brian Jenkins writes about a variety of topics that pertain to college students, including college degree programs in financial analysis, for BrainTrack.com.

One thought on “What College Students and Their Parents Should Know About Insurance

  1. Your parents can add you to their poilcy and show you as the full time driver for this car. Insurance is required for any vehicle being driven on the public roadways. You do not want to be driving a car without insurance should you be involved in an accident. The fines alone would be a killer.If you intend to take the car to college and it is on your parents poilcy you should inform your insurance carrier. The fact is that if the college is in a better rated area than where you live you could actually save money on your insurance. If you have a loan on the car the bank will usually require that you carry physical damage coverage ( collision and comprehensive ) to protect their interests while they are a lien holder on the vehicle.The best advice any one can give you is to speak to your insurance agent or your insurance carrier. That is what you are paying them for.

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