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Ten tips

By TIMES WIRES
Published September 24, 2006

College changes insurance priorities

So your child is all grown up and tucked away in a dorm room somewhere, soaking up a college education and starting to figure out what adulthood is all about. Just how should you and your kid handle insurance coverage and costs at this stage of the game? Consider these tips from Bankrate.com and the Insurance Information Institute:

1 health insurance might be a must. A number of universities across the country are mandating that their students have some form of health coverage - if for no other reason than to prevent the schools or university-affiliated hospitals from getting stuck with medical bills students may not be able to pay.

2 Look into school-sponsored health insurance. Some university-sponsored plans cost as little as $1,200 a year and provide year-round coverage, even when the student isn't attending school.

3 Consider your circumstances. Switching to school-sponsored coverage really might make sense if your child is about to age out of your plan or if your family is covered by a health-maintenance organization. That's because your child might have to pursue care outside your HMO's network if he or she attends school out of the area or out of state.

4 Examine health plans carefully. Regardless of what kind of plan you and your child decide upon, take note of the deductible and prescription drug coverage. Look for year-round coverage and access to care across the country.

5 Does your child need renters insurance? Generally, the answer is no if your kid is a full-time student who's living on campus. Then his or her property is protected by your homeowners or renters policy. But if your child is living off campus or attending school part time, it might be needed.

6 Fly, baby bird, fly. If your child has changed his or her permanent home address - something many students do in order to qualify for in-state tuition - then it might be time for him or her to foot the bill for renters insurance.

7 Find the best renters policy. This coverage should cost only about $140 to $200 a year, and it's easy to add on riders for pieces of property that truly matter. For example, an extra $10 or so could secure $2,000 worth of coverage for a specific laptop. Also, opt for plenty of liability coverage in case someone ever gets hurt in the apartment.

8 Pursue auto insurance discounts. Parents can score premium discounts of about 10 percent if a child goes to college more than 100 miles from home and doesn't bring a car along.

9 Come clean about the whereabouts of the car. If your student left with one of the family cars, your rates are likely to go up. Tell the insurer that the car is being driven in a different part of the country or your policy could be invalidated.

10 Could this be another step toward independence? It might make the most sense for your child to reregister and insure the vehicle in his or her name. Students can qualify for discounts if they have good grades or use the same insurer providing renters coverage.

Sources: Bankrate.com (www.bankrate.com); Insurance Information Institute (www.iii.org)

[Last modified September 24, 2006, 01:12:06]