Tom's BlogThis time of year we get a lot of questions about insurance from parents whose teens are heading off to college. So, this makes me wonder how may parents don’t even think about this and thought I better answer the question “Is Your College Student Covered?” plus some to other questions you may have never thought of.
Many freshmen don’t have the option of having a car on campus, so those parents who have been paying high auto insurance rates for their teen to drive (and now are faced with college expenses) are trying to decide if cancelling their teen’s auto insurance will save them money. Yes, it will save you money on your auto insurance but there are some important considerations.
Is your teen’s car and her auto insurance in her name only? If so, and you can cancel the policy. By state law, you’ll have to turn in her tags as well as her driver’s license. All drivers in North Carolina must be listed as a driver in an auto insurance policy. This also means that she cannot drive at all. This isn’t the most appealing option.
What will your teen be driving when he returns home for the weekend or during breaks? As long as he is a named driver on your policy, your auto liability covers him. Now, you may be able to save some additional premium if he won’t usually be driving while he is at college, and you have more named drivers on your policy than you have vehicles, by classifying him as an ‘occasional driver’.
Who is liable if he has an accident driving his roommate’s car? If his roommate gives him permission to drive his car, then the liability coverage for the vehicle is the primary coverage; your liability coverage (as long as he is a named driver on your policy) is secondary.
Personal Property
What kind of insurance does my teen need for his personal belongings? The dependent child has 10% of the parents’ Homeowners insurance contents coverage for their personal property in a dorm room. But parents should schedule electronics such as laptops, tablets, etc. to their homeowners insurance policy to make sure they are covered.
If your child will be renting an apartment and living off campus, you should purchase renters’ insurance. Call us today to discuss your family’s needs and how economically we can provide the right coverage for all of you.
Tom Wiecek
PS As always, if you ever have any questions about how you are protected, our team is here for you. Give us a call at 336-869-3335 or email us at info@paramountinsurance.net
