Insurance coverage for college students: A guide for the upcoming semester

As college students create dorm room checklists, order books, and look over class syllabi, they shouldn’t forget about insurance plans and policies.

Whether students are preparing to attend college for the first time — or entering into their senior year— they should be aware of insurance coverage for dorm items, renting, tuition, healthcare, and driving.

"Insurance isn't something you can just set and forget," said Skyler McKinley, regional director of public affairs for American Automobile Association (AAA). "As your life changes, your insurance should change with you."

Personal Possessions

Most personal items in a dorm will be covered under the parent’s homeowners or renters insurance, but some items — like computers or other electronics — might be subject to coverage limits, which means that parents might need to purchase a special endorsement for those items. However, it might be best to leave expensive items that aren’t necessary (like jewelry) at home to avoid them getting lost or stolen.

Another option is to take photos and save receipts from all items in your dorm so that you have an up-to-date inventory of everything in case you need to file a claim.

Keep your possessions safe and secure by locking your dorm room door. When walking around campus, do not leave items unattended. According to the Insurance Information Institute, burglaries make up about 50% of all on-campus crimes, and they occur primarily at the library, dining hall, and other public places.

Renting off-campus

For students living and renting off-campus, AAA recommends purchasing renters insurance.

“Renters insurance is necessary to protect you and your belongings and can protect you from liability in the event that someone accidentally gets injured on your property,” said McKinley in a news release.

The average renter’s insurance premium in Colorado in 2020 was $169, or around $14 per month, according to data from Rocky Mountain Insurance Information Association.

Tuition

Some parents consider investing in tuition insurance, which will reimburse college tuition if a student drops out due to physical or mental illnesses and injuries.

According to a study from Education Data Initiative, the average tuition cost for one year at an in-state, public university in Colorado is almost $10,000 — not including room and board. For out-of-state students, the price triples to over $30,000. Those enrolled in private schools can expect to pay over $20,000 on average, not including room and board.

Colleges do not often reimburse tuition if students drop out of college after the refund deadline, so tuition insurance is an option for those who are concerned about their child needing to take a leave of absence or drop out.

“Deciding to withdraw from school is challenging and is often an emotional decision that can weigh heavily on students if they leave and don't get their money back for tuition, housing, and fees. That's where tuition insurance can come in,” said Natalie Hubertus, a spokesperson for GradGuard, a rent and tuition insurance company.

Students should note that tuition insurance would not cover partial withdrawals or situations such as a student not liking the campus or city they're in. It should also be purchased before the start of classes, Hubertus told the Denver Gazette via email.

Vehicles

It’s possible that students' car insurance doesn’t extend if they move out-of-state, so check with the insurance company to verify before driving off.

If students aren’t planning on bringing a car to college, parents might be able to save money by taking them off the policy for the school year.

If parents do not want to remove their child from their insurance policy, they may be eligible for a student discount. Certain insurance companies may have discounts for college students, so check with your insurance provider to see if they have any promotions.

Healthcare

Students should know their health insurance provider and plan before they go to college, and they should also figure out what kind of coverage they have out-of-state if they are going away for college.

Additionally, they should know what hospital or medical center is in-network, according to health insurance provider Blue Cross Blue Shield. Not every medical center will take a student's insurance, so search for locations nearby that do.

If a student no longer qualifies to be on parents’ insurance, ask the school about potential student coverage plans or if the on-campus doctor takes insurance.

It’s possible students could qualify for Medicaid, which means the government would help pay for a health insurance plan.