Haris Ashley
College students are usually covered under their parents' homeowners insurance while living on campus. However, if they live off campus, they will need renters insurance to cover their belongings and liability. In the case of the Auto Club of Southern California, it offers homeowners insurance with Green coverage, which includes the option to have damaged property replaced with environmentally friendly and energy-efficient materials. While this option may appeal to environmentally conscious students, it is important to note that the Auto Club of Southern California's insurance coverage is limited to Southern California. Therefore, students living outside of this region would need to explore other insurance options.
| Characteristics | Values |
|---|---|
| Type of insurance | Homeowners insurance, renters insurance, auto insurance |
| Who is covered | College students, parents, landlords |
| What is covered | Personal belongings, liability claims, additional living expenses |
| Where is it covered | On-campus, off-campus, at home |
| When is it covered | When loss is due to a covered peril, e.g. theft |
| Cost | Average of $187 per year for renters insurance |
| Discounts | Student away discount, good student discount |
What You'll Learn
Students living on campus
However, coverage for college students has its limits. Some insurers will require the student to live on campus (such as in a dorm) and be under a certain age (usually 24 or 25) to be eligible for coverage. Most insurers also have limits on how much they will pay out for property damage or theft that occurs away from the insured residence. This limit is usually 10% of the personal property coverage limit in the policy.
If the student's off-premises coverage limit in the policy is not high enough to cover their belongings, their parents can check with their insurer to see if it is possible to purchase higher limits of coverage.
It is important to note that if the college student moves off campus, homeowners insurance will no longer cover their belongings, and they will need to purchase renters insurance to cover their possessions and liability.
Additionally, if the student has their own car and is the only person listed on the title, they will probably need to get a separate auto insurance policy, which is typically more expensive. However, if they do not have a car and will not have regular access to one, they can be excluded from their parents' auto insurance policy, potentially saving their parents $1,000 to $2,500 a year.
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Students living off campus
If your child is a college student living off campus, they will not be covered by your homeowners insurance and will need their own coverage. They can take out their own renters insurance policy, which will cover their belongings and protect them if they are liable for someone's injuries or property damage. This is the best way to ensure their possessions are fully covered.
Renters insurance is typically cheap and can be purchased from specialist providers such as GradGuard. It can also be bundled with other types of insurance, such as auto insurance, for a discount. Alternatively, your student can share an insurance policy with their roommates, which can help to save on costs. However, any insurance claims submitted by a roommate will stay on your child's record and could have negative implications.
Even if your homeowners insurance policy extends to your child, it may not be the best option. The higher deductibles and potential premium increases make it less suitable than renters insurance. For example, if your homeowners insurance has a $1,000 deductible and your child's $350 tablet is stolen, they wouldn't be able to file a claim because the price falls under the deductible amount. Additionally, any claims you make will likely cause your premiums to increase.
If your child is listed as a dependent and lives on campus, they are likely covered by your homeowners or renters insurance policy. However, off-premises coverage will apply, and your policy likely has limitations. You may only be eligible for 10% of off-premises coverage.
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Students driving at college
Having a car at college can be a big decision for students and their parents. There are many factors to consider, such as the cost, safety, and responsibility involved in owning a vehicle. Here are some key points to keep in mind:
Benefits of having a car at college
Having a car on campus can provide students with greater independence and convenience. They can easily get to part-time jobs, run errands, and move between classes, especially on larger campuses. A car can also provide added safety when travelling at night and peace of mind for both students and their parents.
Costs of having a car at college
There are several costs associated with having a car at college, including the cost of the vehicle itself, insurance, gas, and maintenance. College students with cars are feeling the pinch of rising gas prices, with 68% driving less to save money and 33% struggling to afford gas. Insurance is another significant cost, with more than 6 in 10 students having full-coverage insurance. Students may also need to pay for parking on campus, as only 37% of undergraduates report parking for free.
Responsibility and safety
Having a car comes with added responsibility. Students need to keep up with oil changes, cleaning, and necessary repairs. They also need to be responsible drivers and avoid dangerous behaviours such as texting while driving, speeding, or driving under the influence of drugs or alcohol. Unfortunately, college students are no strangers to risky behaviours behind the wheel. In a survey, 77% of college students with cars admitted to at least one dangerous driving behaviour.
Insurance considerations
Students who bring a car to college should be kept on their parents' insurance policy, especially if they are still financially dependent. While removing them from the policy can save money, it may not be the wisest choice. Students may still need to drive occasionally, even if they don't have a car, and it's best to ensure they are covered in case of an emergency. Students who are considered dependents are likely covered by their parents' insurance while living on campus, but may need their own renters insurance policy if they live off-campus.
Alternatives to owning a car
If the costs and responsibilities of owning a car are too high, there are other options for students to get around. Many colleges offer shuttle services, and students can also rely on public transportation or ride-sharing with friends. Walking in groups and using emergency phone services can also help students stay safe when travelling at night without a car.
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Students with valuable items
If you're a college student with valuable items, such as jewellery, electronics, or other expensive personal possessions, it's important to make sure that you have adequate insurance coverage in case of loss, damage, or theft. Here are some things to consider:
Renters Insurance:
If you live off-campus, your parents' homeowners insurance policy may not cover your belongings. In this case, you'll need to get your own renters insurance policy. Renters insurance will help protect your valuable items and cover the cost of replacing them if they are damaged, lost, or stolen. It's a good idea to review the coverage limits of your policy to ensure that it adequately covers your valuable items. You may also want to consider purchasing additional coverage for high-value items.
Personal Property Coverage:
Homeowners insurance typically includes personal property coverage, which protects your belongings in case of theft, damage, or loss. This coverage usually extends to college students living on campus, but there may be lower coverage limits for belongings that are damaged or stolen off-premises. Check with your insurance provider to understand the coverage limits for personal property, especially for valuable items.
Liability Coverage:
In addition to personal property coverage, homeowners insurance also includes liability coverage. This protects you in case you accidentally damage someone else's property or cause injury to another person. Liability coverage typically extends to college students and can provide financial protection if you are found legally responsible for damage or injury.
Discounts and Savings:
When considering insurance options, look for discounts that may apply to college students. Many insurance companies offer good student discounts, student-away-from-home discounts, and other special rates for students. These discounts can help offset the cost of insurance while still providing coverage for your valuable items.
Understanding Coverage Limits and Exclusions:
It's important to carefully review the coverage limits, exclusions, and requirements of any insurance policy. For example, some insurers may require college students to live on campus or be under a certain age to be eligible for coverage under their parents' policy. Understanding these limitations can help you make informed decisions about your insurance needs and ensure that your valuable items are adequately protected.
In summary, if you're a college student with valuable items, consider getting renters insurance if you live off-campus, understand the coverage limits of your parents' homeowners insurance, and look for discounts to help reduce the cost of insurance while ensuring your valuable possessions are protected.
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Students with part-time status
The Student Away Endorsement extends the same coverage to students living on-campus or off-campus in shared residences. It is a hassle-free option for parents who wish to cover their students without taking out a separate renters insurance policy in the student's name.
It is important to note that a parent's homeowners insurance policy may only apply to a student whose permanent residence is still the insured home. If the student changes their address or declares residency in another state, the policy may no longer cover them. Therefore, if a part-time student lives in an apartment off-campus, a renters insurance policy may be a more suitable option.
Renters insurance is also inexpensive, costing around 35 cents per day, and provides coverage for personal property damaged in fire, theft, or vandalism, as well as liability insurance. It is worth noting that some landlords may require renters insurance for off-campus apartments.
In summary, part-time students can be covered under their parents' homeowners insurance policy through a Student Away Endorsement. However, if they change their permanent address or declare residency in another state, a separate renters insurance policy may be necessary and advisable.
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Frequently asked questions
No, if a student lives off-campus, they will need their own renters insurance to cover their belongings and liability.
Renters insurance covers personal belongings such as laptops, tablets, gaming consoles, clothing, books, furniture, and bicycles if they are lost due to a covered peril, such as theft. It also provides coverage for liability claims and additional living expenses if you're unable to live in your apartment due to a covered loss.
Renters insurance is typically cheap, costing as little as $10 a month with deductibles as low as $100.
Yes, depending on your state and insurer, you may be able to list your roommate on your renters insurance policy for an additional cost. However, filing a claim for shared items or property may be complicated.
One alternative is dorm insurance, which is a good option if your child doesn't have many possessions. It typically includes personal property protection and may include liability insurance. Policies usually have low deductibles, making them more attractive than renters insurance.
