The day has finally come! You’ve spent 18 years preparing your child for life on their own and you did a great job; or you wouldn’t be here, right? Their bags are packed with everything they need (and then some!) and you’ve given them every piece of advice your brain can possibly hold, trying to anticipate every crazy life event that could possibly happen (or not happen!) over the next several years. You’ve covered all the basics, but did you cover insurance?
Generally speaking, a child can remain on your car insurance policy as long as they are a full-time college student and your address is still their primary residence. Whether they take a car to school or not, it is important to notify your agent. They still need to remain on your policy to have the proper insurance protection in the event they drive a friend’s car, are hit while walking or riding a bike, or come home for the holidays and have access to your cars, among many other possible scenarios.
While away without a car, they are eligible, with most carriers, for a substantial discount on your car insurance. If they do have a car, updating the garaging information on your policy may help you.
Lastly, grades matter! Maintaining a 3.0 GPA qualifies them for a Good Student Discount. This could be a great “carrot” to entice them to hit the books a little harder!
There are no issues if your child continues to live with you. Their belongings are covered under your homeowner’s insurance or renter’s insurance. If they stay in an on-campus dorm, it is still not an issue. Most home or renter’s policies will extend up to 10% of your personal property coverage to cover their contents; just make sure the limit on your policy is enough.
However, what if they decide they’re ready for their own place? Own place = Own insurance. You may want to talk to your agent about a renter’s policy for them, which will also include liability coverage in the event someone is hurt. Many college rental communities now require renter’s insurance and even offer an option to have it added onto the rent.
Regardless if at home, in a dorm, or in their own place, be careful with things like jewelry and musical instruments – these may need their own special coverage!
Whatever your situation, Bouchard is here to help you navigate this exciting time. Give our team a call!
And finally…CONGRATULATIONS on making it to this new chapter in life!