SCC Encourages Virginians to Evaluate Insurance Options for College Students

RICHMOND – August is back to school time for many students across the Commonwealth, and if you or a family member are heading off to college, it’s a great time to review insurance needs for both those students and their families.

The State Corporation Commission’s (SCC) Bureau of Insurance (Bureau) encourages Virginia families with college students to make sure their college prep checklist includes a thorough review of both their own insurance policies, as well as those of their students.

“Protect yourself and your family financially by ensuring your child has the insurance coverage they need before they leave for college,” said Virginia Insurance Commissioner Scott A. White. “Review insurance coverage for their health, auto, living space and belongings and make sure they understand their coverage.”

Shopping around for insurance coverage and comparing premiums and policy provisions is recommended by the Bureau. Be sure to read your insurance policy carefully and fully understand exactly what’s covered. Also understand exclusions, deductibles and coverage limits. If you have questions or concerns, contact to your insurance agent or company. The Bureau also offers the following insurance considerations for parents and college students:

HEALTH

There are several health insurance options for college students in Virginia. Under federal law, students may be able to stay on their parents’ health insurance until they are 26 years old. If your child is included on your health insurance plan, make sure they have a copy of any insurance cards and understand what is covered, as well as know how to obtain referrals, if necessary, before seeking treatment. Some health insurance policies require your student to find an in-network physician or hospital – except for emergency care – or pay additional out of pocket costs if the provider is out-of-network.

Students who don’t have health insurance coverage through a parent’s policy, or who have limited coverage due to a provider network or service area, may opt to buy a student health plan through their school. Additionally, students may be eligible for a Special Enrollment Period that would give them a chance to apply for a private health insurance plan through the federally facilitated health insurance marketplace at HealthCare.gov.

PERSONAL PROPERTY AND HOUSING

Many students bring their valuable items with them to campus. Whether it’s laptops, desktops, monitors, televisions, gaming devices and the like, consider the cost to replace everything of value in your student’s dorm room or apartment if a theft or disaster occurred.

Students who live on campus may have their belongings covered under their parents’ homeowners or renters policy if they are stolen or damaged. Some insurance policies may require special coverage for jewelry or expensive electronics. In the event of a loss, policy deductibles may also apply.

Students in off-campus housing should consider renters insurance, which generally covers a tenant’s personal property as well as insures the tenant in case someone is injured on their leased premises. Landlords’ policies generally only cover the structure, not a renter’s possessions. Premiums on a renters insurance policy vary depending on the location and size of the rental unit as well as the value of the tenant’s possessions.

An inventory of your student’s belongings should always be prepared regardless of their housing situation. An inventory of personal property will help you and your student determine how much insurance coverage is needed. If a loss occurs, the inventory can facilitate the claims process. The National Association of Insurance Commissioners (NAIC) offers a free smartphone app that makes taking an inventory easy.

AUTO

If your child is driving their car at school, parents should ask their insurance provider about coverage availability - as well as rates for the city and state where the college is located – before keeping or dropping the student’s car from their policy. If the student is attending school out of state, make sure you understand that state’s minimum requirements for auto insurance coverage. Additionally, inquire with your agent or company about good-student discounts. These discounts apply to auto insurance premiums for students who maintain good grades and meet eligibility requirements.

If your student’s name is on the title of a car, they must buy their own auto insurance policy. However, students may be able to remain on the parents’ policy if their parents own the vehicle they will use at school. Tell your insurance agent where the car will be stored if the address is different from what’s on the policy.

For more information, contact the Bureau toll-free at 1-877-310-6560 or in Richmond at 804-371-9741 or visit its website at scc.virginia.gov/pages/Insurance

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Contact: Jordan Bondurant, 804-371-9141