As you prepare to help your teen embark on this exciting journey, you want to make sure he is protected with the proper insurance. But you're not sure if his new college student status changes how he should be covered. Here are some areas to consider discussing with your agent.
- Auto Insurance
Whether your child needs his own auto policy or not depends on whose name appears on the title. If it's his, then he should have his own auto policy. If it's yours, then he can be listed as a driver on your policy, as long as he's a resident in your home or meets the definition of "insured" as defined by your insurance carrier. Tip: Some insurers reduce a parent's auto policy rate if their child attends college without a car and is more than 100 miles from home.
- Home Insurance
Chances are your teen is toting costly electronics to college. Fortunately, most home insurance policies will cover his belongings if something happens to them. However, coverage limitations still apply. Renter's insurance is also an option to cover your child's belongings. Tip: If you purchase renter's insurance for your child, you may be able to lower coverage on your home policy.
- Health Insurance
The thought of your child taking ill at college is enough to worry any parent. Fortunately, the health insurance from your job will often still cover your child. Check with your insurance carrier to be sure. You might also consider purchasing a health insurance policy from the school. However, these policies frequently don't offer the same level of coverage as the parents' policy and may still have a pre-existing conditions exclusion. Tip: If your child is covered under your health insurance policy, remember to check with your agent about what the maximum age is that he can remain on your policy.
Insurance policies and coverage are unique for every insurance carrier, and these answers are based on ISO (Insurance Services Offices Inc.) policies, which may not be adopted by all carriers. There are also different editions of ISO policies, as well as different definitions of "insured." Carefully check your policy to determine which coverages and definitions apply to you.
The Answer May Be Surprising…and Valuable
Life Insurance Awareness Month, an annual event celebrated in September, is designed to educate Americans about the essential role of insurance in personal planning and helping to add security to your household.
AAA Life Insurance Company wants you to participate in Life Insurance Awareness Month by taking a short quiz about life insurance. Once you're done, go online to check your answers and learn five important facts about life insurance.
Life Insurance Quiz
To replace your future earnings with an adequate amount of life insurance, you need coverage equal to about five times your annual income. True or False?
It is possible to purchase term life insurance in which 100% of your premiums (costs) are returned at the end of 15, 20, 25 or 30 years. True or False?
Note: Visit AAA Community on AAA.com for three more questions plus detailed answers for all questions. How did you do?
Reprinted with permission from AAA Life Insurance.