As millions of students head off to college this fall, the National Association of Insurance Commissioners (NAIC), of which the DC Department of Insurance, Securities and Banking (DISB) is a member, strongly urges these young adults—and their parents—to get smart about insurance. Children living away from home might not be covered by their parents’ property, auto and health insurance, according to the NAIC, which provides helpful tips and considerations about all types of insurance at its Insure U public education website.
 
“College costs are high enough,” said DISB Commissioner Thomas E. Hampton. “Parents don’t need the unpleasant financial surprise of an insurance claim that is denied because their child isn’t properly covered. We recommend that parents carefully review their homeowners, auto and health insurance policies to determine exactly what is—and is not—covered for their college-bound children.”

Following are some considerations and tips from the NAIC for parents and college students:

College Students and Renter’s Insurance
Whether students live in college housing or rent apartments, they will likely have valuables, such as a computer, TV, stereo or video game system, which could be stolen or destroyed in a fire or natural disaster. Parents should check their homeowner’s policy to see whether it will cover a college student’s possessions. Furthermore, if students live in an off-campus apartment, parents should consider purchasing renter’s insurance through their existing homeowners insurance provider. 

College Students and Auto Insurance
Parents and college students should do some homework regarding auto insurance. If a college student is going to be using the family vehicle when visiting home, parents should make sure the child is listed by name on the family’s auto insurance policy. If the student will be taking a car to school, parents should check the specific rates for the college’s city and state before deciding whether to keep their child on the family’s auto policy. In addition, the insurance company should be notified each semester if the student maintains good grades, as that accomplishment might lower premiums. 

To control costs, parents should also ask about an “accident forgiveness” clause that promises not to raise premiums if a student gets into one minor accident. They should also consider raising the policy’s deductible and only allowing their child to drive the family’s oldest, least expensive car. In addition, parents might consider purchasing an older car for their child and foregoing comprehensive and collision insurance on that vehicle.  

College Students and Health Insurance
Full-time college students are often covered under their parents’ health insurance plans until they graduate or reach 23 years of age. While students are away at college, it is important to check whether the campus health facility, local physicians and hospitals accept the family’s insurance coverage. If not, it might be advisable to purchase a student insurance plan through the college. Be sure the student has a copy of the relevant insurance cards and knows about obtaining referrals and approvals before seeking treatment.

About the NAIC
Headquartered in Kansas City, Mo., the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and the five U.S. territories. The NAIC’s overriding objective is to assist state insurance regulators in protecting consumers and helping maintain the financial stability of the insurance industry by offering financial, actuarial, legal, computer, research, market conduct and economic expertise. Formed in 1871, the NAIC is the oldest association of state officials. For more than 135 years, state-based insurance supervision has served the needs of consumers, industry and the business of insurance at-large by ensuring hands-on, frontline protection for consumers, while providing insurers the uniform platforms and coordinated systems they need to compete effectively in an ever-changing marketplace. For more information, visit NAIC.