When your kids move out of the house, you want to make sure that they're prepared for anything and you've given them the tools they need to be set up for success. An essential tool we may not often think about is sending them off with the right insurance.

 

Most of the time, unwed students away from home can still be covered under their parent's package policies, but these policies may not cover all of your child's insurance needs. There are a few advantages of setting up an individual insurance plan for your child:

• If your child makes a claim, it will be on their own policy with their own liability and coverage so it won't negatively affect your plan or come out of your deductible.
  • In most cases, parents will have a few other assets like a cabin, boat, or ATV included in their insurance policies, so if your child makes a claim like vehicle damage in an accident while they're under your policy, it can negatively impact your coverage since you're the one making the claim. You could also lose your Claims-Free discount if this applies to you and this discount can take three years to get back.
• Basic plans for renter's insurance and vehicle package policies are relatively inexpensive in the long run.
  • Basic tenant policies with a $500 deductible can be $200-$250 per year depending on location. Basic vehicle package policies with a lower deductible and higher limit of liability can be under $200 per year depending on the deductible you choose. More coverage options are available for both vehicle and tenant insurance should you choose to upgrade later on.
• Individual plans give you peace of mind knowing your child is covered while also giving your child a sense of responsibility, security, and independence as well.

 

Getting the right insurance for your child makes sure that they'll be protected when they're moving to a new place, giving both of you peace of mind. Every policy is different, so to make sure you have all of the correct information, come talk to us if you have any questions at all.

 

If you'd like to listen to the original radio interview about this topic, click here.