Everything You Need to Know About College Student Auto Insurance and Renters Insurance

Having a kid in college comes with plenty of concerns, including what kind of insurance they need when at school. Should your son or daughter remain on your policies? Should they have their own auto insurance or renters insurance? Here are some key factors to help you decide.

Auto insurance

While removing your college student from your auto insurance policy can help you save money, it may not be the wisest choice. The deciding factor largely depends on how often your student may drive:

If your student won’t drive: With no car at school and no plans to drive someone else’s vehicle, you may be tempted to exclude them from your auto policy to save money, but that might not be wise. Instead, most insurance companies allow for a "student away" category, which generally reduces the premium for policies where a student lives elsewhere and doesn't drive, but may come home occasionally and use the car. 

If your student may drive: Even without their own car on campus, your student might drive a friend’s car from time to time. In this scenario, any incidents or damage would generally be covered by the friend's insurance policy.

If your student plans to drive: It’s wise to keep them on your policy. They could get their own auto insurance policy—and will need to if they officially change their address—but as a “high-risk driver” (a young driver without much experience), they may face expensive premiums. If your student remains on your auto insurance policy, there still may be a way to save money. Check to see if they’re eligible for “good student” discounts (based on academic performance) or “student away from home” discounts (based on how far away the school is).

Renters insurance

Renters insurance helps cover personal possessions like clothing, jewelry, computers and electronics from loss, damage and theft. Whether your student needs a policy depends on their plans for housing.

If your student lives on the school’s campus: If you’ve listed your child as a dependent, they are likely covered by your home or renters insurance policy. However, off-premises coverage would likely apply, and your policy likely has limitations—you may only be eligible for 10 percent of off-premises coverage. Getting your student a renters insurance policy is the best way to help ensure that their possessions are covered in a dorm.

If your student lives off campus: Your insurance policies will generally not cover your son or daughter, so they will need their own coverage. It may be possible for your student to share an insurance policy with roommates, which could help to save on cost. But any insurance claims submitted by a roommate could stay on your kid’s record and could potentially have negative implications.

If your student lives at your home: Typically, your student is covered by your home or renters insurance policy if you’ve listed them as a dependent. They generally do not need their own policy as long as they remain under your roof.