• Chen & Associates

Got Kids in College? Better Get Insurance.

Understanding the different options for sending your kids to college with proper insurance coverage.



Homeowners Insurance

  • Kids are covered against theft and other common hazards

  • Are covered even if they are living far from home in a college dormitory

  • Deductibles tend to fall around $1,000 and higher

  • Claims impact next year's insurance rate

  • *College kid's primary residence is still the parent's home and under 24 years old

Renter's Insurance

  • Premium is inexpensive in most cases, average costs are around $150 to $200 per year

  • Generally about $10,000 in personal possessions coverage

  • Have lower deductibles, usually $500, that are more appropriate for college students


 

Driving a car to college

  • If the parents still own the car the student is driving, then parents are still responsible for it

  • If the car is in a new location rather than at the parents' residence, the car owners must notify the insurance carrier

  • Be sure to add your child to the list of authorized drivers

Going to college without a Car

  • Sending your kid to school without a car may be an ideal option, as well

  • Ride-sharing services like Uber and Lyft is making it easier and more economical to function without a car

  • Talk to your college student about using ride sharing services or taxis when going out drinking


 

Health Insurance

  • Under the Affordable Care Act, parents are generally entitled to keep full-time students on their own policies until the age of 26

  • College health plan coverage is typically more limited.

  • For example, many of these plans limit catastrophic coverage to $50,000 per accident or illness

  • If your health plan is a health maintenance organization (HMO) or preferred provider organization (PPO), take a look at the available network of care providers is a must

  • To make sure there are approved in-network providers near the college campus


 

"College is a step in kids road to success. Embrace the change and relish the experience."



 

The content here is provided as general information only and should not be construed as a recommendation to buy or sell any security or financial instrument or to participate in any particular trading or investment strategy. All material presented herein is believed to be reliable but we make no representation as to or accepts any responsibility or liability for, the accuracy or completeness of the information contained herein or any decision made or action taken by you or any third party in reliance upon the data. The investments discussed here may be unsuitable for some investors depending on their specific investment objectives and financial position. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.

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