Parents can’t always protect their children who are away at college, so insurance is an important safety net. Three affordable insurance options can provide peace of mind for worried parents and the protection college students need.
Other than staying on their parent's health insurance, students have several coverage options.
Students can apply for an individual plan in the state where they attend school, and depending upon household income, a premium tax credit could help reduce monthly premium costs. Students not claimed as dependents should always apply on their own, but if the student is under 21 and living with parents, household income for the student and parents must be reported on the application.
Lower-cost catastrophic coverage is also an option for adults under 30. These high-deductible plans provide financial protection against extreme medical bills in the event of serious injury or illness. The plans are considered qualifying coverage, but there are no subsidies available.
Some universities offer student health plans that provide affordable coverage, however, plans vary, so always verify the plan benefits.
Dorm and apartment living are practical housing choices for students, but theft and property damage are commonplace. Renters insurance covers personal property such as televisions and laptops, and it provides personal liability protection in the event of injury or accident.
It’s possible for parents to add renters insurance to their homeowner’s insurance policy. However, there are temporary, stand-alone renters policies designed for students in dorms or apartments. These policies will prevent parents from filing a claim on homeowners’ insurance if something were to happen to a child’s property.
Some parents consider removing their child from the family auto insurance if they will not have a car at school. However, auto insurance not only protects the car, it protects the individual on the plan. The protection extends to driving someone else’s car or getting injured as a passenger. Because of the protection it offers, it is worth the extra cost for the extra piece of mind.
Additionally, students who do have auto insurance and take their vehicle to school should report their relocation to the insurance company. Reporting will help secure accurate ratings for the location, which could raise or lower the monthly cost.
If you have a student heading off to school and want to be sure they have proper coverage, call Bukaty Companies today at 913.345.0440.