It’s inevitable that something will be forgotten in the excitement of sending a child off to college.
Tuition bill paid? Done.
Textbooks ordered? Check.
Insurance taken care of? Oops.
Insurance needs are often overlooked. But relying on existing coverage — or a lack of it — can end up costing families during the college years and perhaps beyond.
Parents don’t need to buy all kinds of additional insurance. But they had better at least review their coverage to know whether they’re prepared for that stolen iPad, a trip to the emergency room or worse.
A look at key considerations for different types of insurance:
Health
Many colleges and universities require health insurance. Most parents can meet that by keeping their children on their plan, which federal health reform allows until age 26.
If the college is in another state, it’s important to check if your plan’s network of preferred doctors and hospitals extends there. Otherwise, the highest level of coverage might not be available.
School-sponsored health plans usually cost hundreds of dollars per semester. Many also place dollar caps on coverage, as well as require that most care be provided through the student medical center. These options are best-suited for the many students whose parents don’t have health insurance.
An alternative would be an individual health insurance plan. A student should be able to obtain a policy that costs no more than $150 a month. Check prices at Internet-based insurance provider eHealthInsurance.com or StudentHealthPlan.com.
Auto
Car insurance is an area where families can actually save money. Premiums might be reduced by 10 percent to 20 percent if the student attends a college more than 100 miles away and doesn’t take a car. And car on campus or not, some insurers also offer a “good student discount” for those who maintain a B average or higher.
Parents also should inform their insurance company that a student on the policy will be relocating.
Personal property
It’s not unusual for students to have thousands of dollars of electronic gadgets and other belongings in their dorm rooms. And they are popular targets for theft. Such items typically are covered by the parents’ homeowners or renters insurance if stolen — minus the deductible, of course. But coverage varies, so inquire about any policy limits.
Taking a photograph of each expensive possession can help ensure receipt of its proper replacement value if it’s stolen.
To protect against items being lost, or for extra coverage with a lower deductible, renters insurance is available for usually around $150 to $200 a year. Deductibles can be as low as $50 or $100.
Anyone living off-campus will need to get a separate renters insurance policy to cover personal belongings, as will each roommate.
Tuition
Tuition refund insurance is a means of getting your money back if the student withdraws from college — generally only for documented medical reasons or because of the death of the student, parent or guardian.
Much of what it provides is peace of mind. “It’s not something that you really need, and it’s relatively expensive,” says Mark Kantrowitz, founder of the financial aid site FinAid.org.
“We encourage tuition insurance because students are not invincible,” said Kurt Holmes, dean of students at the College of Wooster. “Every year, medical situations as simple as mono or an appendectomy arise that cause students to lose a semester.”
Life
Buying life insurance for a college kid might sound overly cautious. But it can make sense for parents who co-sign for tens of thousands in private student loans. Without it, they might owe the amount they co-signed for if their child dies.