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If your teenager is driving and college
bound, you may need to consider purchasing more than just
automobile insurance coverage to keep him or her safe. While
it’s best to speak to an NIA Personal Insurance advisor
directly, here are several common insurance strategies that
parents can implement to safeguard their assets, should an
unforeseen event arise.
Tuition Insurance
With the annual cost of a private education expected to average
$30,000 in 2005, more families are buying insurance that covers
their child’s tuition if the student has to leave school
unexpectedly. However, this insurance only covers the tuition
if your child gets injured or become seriously ill and must
leave school as a consequence. It does not cover tuition if
your child withdraws from school for financial problems, bad
grades, or drug or alcohol abuse. Generally, when a student
withdraws because of a medical issue, the university will
refund a prorated amount based on how long he or she attended
classes that semester. Meanwhile, some parents are increasing
their life insurance coverage to ensure their children of
a full four-year education in case tragedy should strike either
or both of the income providers.
Property Insurance
If your child is boarding at college, many homeowners and
renters policies will provide coverage for personal property
off premises. The off premises coverage is usually a percentage
of the personal property limit on your policy. You may wish
to check with your NIA representative to make certain that
the off premises limit is sufficient to repair or replace
all electronics and other items in your youngster’s
dorm room or off-campus apartment. If it is not sufficient,
you can purchase a separate renters policy for the dorm room
or apartment at a very reasonable rate. The average cost of
renter's insurance is approximately $12 a month for a $30,000
limit for personal property coverage and a $100,000 limit
for liability coverage.
Automobile Insurance
Auto insurance for teens and college-aged drivers can be high
for good reason: young drivers get into more accidents than
adult drivers as a group. While few colleges allow freshmen
living on campus to bring their cars to school, many upperclassmen
have them. Here are some items to consider if your college
student has a car:
- Students who maintain a B average or better in high school
or college can receive a good student discount that may
be as much as a 25% discount each year.
- Teens who take a driver’s training course may save
10% annually.
- A new car will cost more to insure than a car that is
a few model years old. Consider dropping collision coverage
if the vehicle is several years old and is owned without
an outstanding loan. Sports cars and other high performance
models will cost more to insure than a sedan.
Health Insurance
Most full-time students between the ages of 18-23 can receive
insurance coverage under their parents’ health plan.
Check with your NIA representative to make sure the age cutoff
isn’t lower on your policy. If your health care plan
doesn’t cover your teen, ask the registrar or student
health services director for details on whether the college
offers a health insurance plans for individual students.
For more information, call your NIA advisor directly or
the NIA Personal Insurance Division
at 866-642-8600.
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