There is a great deal more than pencils, notebooks, and laptops to consider.
The first day of classes is about to begin and parents are starting to realize that they have not yet purchased their student insurance, causing a swell of inquiries to insurers across the country.
There are several types of coverage that need to be considered when kids go away for school.
More than ever before, parents are realizing that coverage is a vital part of sending their children away to college, and that there is more to student insurance than making sure they have a health plan.
Common student insurance policies being purchased this year include auto, motorcycle, and contents coverage.
For many people going off to college, money is extremely tight, so they may consider forgoing coverage and taking the risk in the hopes that nothing unforeseen will happen. After all, data from the Federal Reserve Bank of New York showed that last year, the average student loan debt in that state was $23,300. This number does vary from one state to the next, but with this level of financial burden, it can be difficult to want to add additional bills to the total.
However, the primary value to student insurance is that the kids or their parents won’t be left with much larger financial burdens in the case of a car accident, fire, theft of property, or serious illness.
Aside from health plans, which is often required by colleges and universities, and that is much easier for many students to obtain now that the health care reforms have made it possible for people aged 26 or younger to remain on their parents’ policies, auto and property policies are the most sought after coverage this year.
In 2012, parents are often more savvy when looking for deals and many are taking advantage of a “distant student” discount. Many insurers offer this type of coverage for kids away at school when the campus is a minimum of 100 miles away from their parents’ address. Other potential discounts include those for good grades. Keep in mind, though, that keeping a vehicle on campus may require higher coverage levels, as will a move from a rural area to an urban one.
Contents student insurance has also become highly important. Though going off to college does still frequently involve second hand furniture and other items that have very little value, today’s pupil also has expensive electronics, ranging from laptops to televisions, smartphones, tablets, e-readers, and MP3 players. Coverage against theft and loss from fire or other catastrophic events can make a significant difference in the financial impact of such an occurrence.
