College is expensive enough without finding out too late that an accident or theft isn’t covered under parents’ current policies.
Coverage of personal property
Most homeowners policies provide 10 percent of Coverage C (Personal Property) for property owned by an insured while it is at a residence other than the insured residence. That means if the contents of a policyholder’s home are insured for $100,000, a student’s property up to $10,000 would be covered if living in a dormitory – provided the damage is caused by a covered peril and the student meets the definition of a insured. Certain items, such as jewelry or expensive electronics my require special coverage or insuring it as a “scheduled item”.
There usually is an exclusion for damage to property rented to an insured, so generally damage to a dorm room or apartment would not be covered.
If a student’s needs can’t be met under their parents’ current policy, don’t forget about the asking for a Renter’s Insurance quote.
Coverage without a car at school
If the student will continue to drive while at home on school breaks, they should continue to be listed on an insured’s auto policy. If they are attending school more than 100 miles from home and are not taking a vehicle with them, the policy may qualify for a distant-student discount.
Coverage with a car at school
In most instances, a car registered to the parent and listed on their policy will be covered if used by a listed student away at school. However, insureds should make sure that their insurance carrier writes coverage in the college’s state and location. It’s important for agents to know if the insured’s child is taking a car, because the principal location of the vehicle could result in a change in premium.
Driving a friend’s car a school
Students generally would be covered while driving a friend’s car if they are listed on their parents’ policy and do not have regular use of the vehicle. The coverage would likely be secondary in this case, as the carrier for the friend’s vehicle likely would be the primary coverage.
In addition to the possible distant-student discount mentioned above, students may qualify for a good-student discount. To qualify, a student must be enrolled in at least four courses per term as a full-time student at an accredited college or university and meet certain academic qualifications. Also, drivers under the age of 21 who complete a driver education course my be eligible for a policy discount.