Whether you wept for days or threw a party to celebrate your freedom, it’s time to accept that your children have left the nest and adjust to your new living arrangements. There are a few important insurance considerations to make when your kids go away to college or move out of your home.
Here are a few of the biggest things to know about your changing insurance needs during this time:
Drivers on your policy- Most kids get a license to drive between the ages of 16 and 18. If you are like many parents in the world today, you were probably shocked to see the increase this made on your car insurance premiums. In most states, even if a licensed driver in your household does not have a car or is not allowed to drive yours, they still must be listed on your policy as a driver. Since new drivers are inexperienced on the road, insurance companies charge huge premiums to insure them.
The good news is, if your child is moving out of your home and taking permanent residence elsewhere, you no longer need to list them as an insured driver on your policy. This should make a huge difference on your car insurance premiums and save you some considerable money on your car insurance.
Personal property theft coverage– Nowadays when kids go off to college they bring more valuable items than they did in the past. If you add up the value of their electronics alone (laptops, cell phones, cameras, iPods, etc.) you’ll surely come up with a small fortune. Unfortunately, thieves know that college dorms and apartments have become prime targets for theft.
The positive side to it all is that your homeowner’s insurance policy will typically cover your children’s valuable items against theft if they are residing in on-campus housing. However, if they are living in off-campus housing, they should definitely consider purchasing a renter’s insurance policy to protect their valuables amongst other things.
A tip: Computers are often a requirement for kids to bring when they go away to school, however, try to convince your child to leave any other valuables behind such as expensive jewelry. It limits the chances that it will get lost or stolen.
Medical insurance plans– Oftentimes a young adult will move out of their parent’s home to take a job in another city. When this happens, be sure to know if your child is taking advantage of a medical insurance plan through their new employer. If so, you can stop paying for their coverage under your own plan and save quite a bundle on your health insurance premiums. Keep in mind that most health insurance providers will only cover your children on your plan until they are 26 years old.
Author: Carrie Van Brunt-Wiley has been writing about insurance for 4 years at HomeInsurance.com. HomeInsurance.com is a leading online resource for insurance quotes, coverage and consumer information.