As a parent, seeing your child graduate can be both exciting and nerve-wracking. Amidst all the preparations for college or their next step, it’s essential not to overlook your insurance policies. Whether your child is moving away or coming back home, there are several adjustments you’ll need to make to your auto, home, and health insurance policies.
This topic should not be taken lightly. Adjustments need to be made to your insurance. Moving forward without making the necessary adjustments can cost you money and place your child in situations where they are uninsurable.
Auto Insurance
If your child is moving into a dorm and taking a car, you can keep them on your auto insurance policy. However, if they’re moving into a dorm without a car, you can still keep them on your policy and potentially receive a “distant student discount”. Most distant student discounts apply if they’re over 90 miles away at school.
However, if your child is moving out and not into a dorm, they’ll need their own auto insurance policy, even if they’re still occasionally using the family car. This point is very important and worth repeating: If your child is not moving into a dorm and they are moving out of the house, they need their own insurance policy.
It’s also crucial to note that if your child moves back home at any point, it can impact your auto insurance, even if they have their own policy. A fact about insurance that parents and roommates hate is this: All household members are required to be listed on auto insurance policies, even if they have a separate policy. This means if your child moves back in with you, they’ll need to be added to your policy, and your premiums may increase as a result.
But there is good news! Good student discounts do not end when high school ends. Many of them are still available for full-time students up to 23 years old. This discount is given to students who maintain a certain GPA level and is a great way to save money on auto insurance premiums.
Home Insurance
If your child is moving into a dorm, their belongings may be covered under your home insurance policy. If your child is moving into an apartment or renting a house, they’ll need to purchase their own renter’s insurance policy to protect their possessions.
If at any point your child moves back home, you’ll need to update your home insurance policy. Your policy should reflect any changes in the number of people living in your home, as well as any new valuable items your child brings with them. Remember: All household members need to be listed on insurance policies.
Health Insurance
Under the Affordable Care Act, dependents can remain on their parents’ health insurance policies until they turn 26. This means your child is covered on your health insurance policy while they’re in college, even if they’re not living at home.
However, it’s essential to review your health insurance policy to ensure it provides adequate coverage for your child’s medical needs, especially if they’re moving to a new state. Coverage can be tricky if they are attending a college or living in a state that is outside of the network.
Having a child graduate is an exciting milestone, but it also requires making changes to your insurance policies. Reviewing and adjusting your auto, home, and health insurance policies, ensures that you and your child are adequately protected during this new chapter.
The best way to navigate these adjustments is to do it with a wise and loving independent insurance agent. Independent agents have access to multiple insurance policies from a large network of insurance companies. This flexibility will help you and your growing child obtain the right insurance at the right price.
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