8 Student Insurance Buying Tips

Millions of college students are going back to school this fall. They may be thinking about their new roommates, finding classes and how far their dorm is from the cafeteria.

They should also be considering their insurance needs. Unless they are staying on their parents’ plan, it’s probably time to get their own auto and health insurance.

1. Take Advantage of Discounts

In many states, students can get discounts on car insurance if they are full-time high school or college students with good grades. Typically, that means showing proof such as transcripts or test scores, being on the dean’s list or honor roll, or membership in a fraternity, sorority or other campus organization.

Home-schooled students may also qualify for student discounts. Other ways to save include leaving the family car at home if they are going away to school and using public transportation, bundling their auto and renters insurance with one company, and using a telematics app to reward safe driving habits. Discounts are available from most major insurers. These savings can add up.

2. Shop Around

Aside from staying on a parent’s policy, students can also purchase individual insurance plans. These typically provide more control over benefits and pricing than school or student insurance plans do.

Depending on the insurer, students can often get good student discounts by proving they’re enrolled full time in school and getting B averages or better. This usually involves providing a copy of a current transcript or grade report. Other options include a letter from an administrator, standardized test scores (SAT, PSAT or ACT) and ranking in the top 20% of their class, according to Policygenius.

Car insurance companies can offer good student discounts based on a variety of criteria, including driving safely and being a member of certain campus organizations like fraternities or sororities.

3. Make a Home Inventory

Whether you rent an apartment or own your home, it’s a good idea to make a list (or pictures or videotape) of the possessions inside. This record will help you settle insurance claims quickly, verify losses for tax purposes and determine the right amount of coverage to purchase.

Regardless of how you make your inventory (there are a number of free home inventories apps available), be sure to store it in a safe place away from the house and keep it updated when significant purchases are made. Remember to include items in basements, attics and tool sheds. You should also consider getting items appraised for value. It will save you time and money in the long run.

4. Get a High-Deductible Health Insurance Policy

A high-deductible health insurance plan (HDHP) usually has a lower monthly premium than traditional plans, but the enrollee is responsible for more out-of-pocket costs until they meet the deductible. This type of plan is often paired with a tax-favored health savings account, where contributions and withdrawals are tax free when used for eligible medical expenses.

College students face a number of health challenges, including mental illnesses and infections such as mononucleosis and respiratory disease. A good insurance policy can help them get the care they need without draining their parents’ bank accounts. A qualified independent insurance agent can review options and help students find a plan that meets their needs.

5. Get Auto Insurance from a Good Company

When choosing car insurance, it’s important to choose a provider that has a reputation for quick and efficient service in the event of a claim. In addition, it’s a good idea to find a company that offers a wide range of discounts for students, such as driver safety courses, student-driver discount, and multiple-car discount. It may also be beneficial to select a company that offers a wide variety of coverages, including collision and comprehensive coverages. Click to learn more about insurance requirements for students in the US. Bryanna joined International Student Insurance in 2011 and enjoys helping students navigate the ins and outs of the insurance world.

6. Get Renters Insurance

Renters insurance can protect against theft, break-ins, fires, and more. It also covers personal liability. When choosing a policy, be sure to consider the deductible. The higher the deductible, the lower the premium. However, be sure you’re comfortable paying that amount in the event of a claim.

It’s worth shopping around for the best policies. Typically, the most affordable options will offer low premiums balanced with good coverage. Liberty Mutual is a great choice for frugal people who want to customize their policy. This company is affordable, offers add-ons to expand coverage, and has a great customer service team. They are also one of the few companies that allow buyers to choose their own coverage limits for personal property.

7. Consider International Coverage

Depending on the country or school, some international students are required to have certain coverage to enroll or participate in their study abroad program. This mandated insurance can often be found with a school plan or in a waiver form that must be completed by the student.

International student plans are typically fairly comprehensive and come standard with medical evacuation and repatriation coverage. They may also include coverage for pre-existing conditions, dental and maternity.

In addition, if the student will be participating in organized sports like intercollegiate or club, it is important to verify that they would be covered by their plan. This includes injuries that occur during practice, game or competition.

8. Check Your Credit Score

A student’s credit score can play a role in financing some of life’s biggest purchases, such as a home or car. But it also can influence insurance premiums.

Buying health insurance is a must for students, and the type of coverage they choose will have a direct impact on their overall costs. It is important for students to look at the benefits of each plan and understand what they will be required to pay out-of-pocket in the form of deductibles, co-pays and co-insurance.

A good place to start is by getting your free credit report from each of the three major bureaus annually. You are entitled to one under federal law.