eeing your newly-minted high school graduate move on to college is a rewarding experience for them and for you. But you may have concerns about the best way to protect your son or daughter from common financial risks. Before your child leaves for school, be sure you’ve considered these important insurance questions.

Can we save money by removing our college student from the family’s auto insurance policy?

Once a child moves on to college some parents are tempted to save money by removing the student from their policy. But what happens if your child:

• Comes home for a visit and wants to take out the family car?
• Is asked to be a designated driver one evening?
• Is hit by a car while walking or biking – or even while riding as a passenger in someone else’s vehicle?

Make sure your college student is fully protected. In many cases, that will mean keeping your child on the family policy. Besides, the cost of coverage might not be as high as you think. You can save money with a “good student discount” (typically a grade average of 3.0 or higher) or a “distant student discount” if your child is attending college 75 miles or more away from your residence.

Does our child need a separate auto insurance policy?

It is generally more expensive for young drivers to take out their own policy. So if you’re planning to let a college student take a car you own to school, you’ll likely want to keep them on your family policy. (Students who own their vehicle and hold the title need their own auto policy.) Also, make sure to update your policy to reflect the new college address where the car will be parked. A new address may save your family some money, especially if your student attends college in a less populated area of the state.

Do we need to buy personal property insurance for our college student?

If your child is living in a dorm room on campus – and you have a renter’s or a homeowner’s policy – then your insurance policy will cover their personal belongings up to a 10 percent limit of your personal property coverage. If your renter’s or homeowner’s policy has a limit of $100,000 for personal property, then there will be up to $10,000 in coverage (subject to your deductible) for your child’s personal property.

What should we do to ensure personal property coverage if our child travels abroad?

If your child is gone from their college home longer than 45 days, then you’ll want to either ship their belongings home or temporarily store them in a storage facility. This move will ensure that their belongings are covered while they are away.

What type of personal property coverage is needed for a college student living off campus?

If your college student is living off campus (either alone or with roommates), then consider a separate renter’s policy. This will cover personal property and provide liability coverage should a visitor suffer an injury. Renter’s insurance policies are usually very affordable, often times less than $15 a month.

To learn more about insurance options for your college student, give your First Command Financial Advisor a call. We can help you make sure your child is adequately protected and your insurance coverage provides the best value and protection for your money.