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Romanov Report 14 – Aug 18, 2005

August 18, 2005

Students: Moving Out and Protecting Your Gear

Students need to ensure that their belongings are insured, particularly their computer and electronic gadgets.

Their parents’ home insurance policy usually covers their child’s computer and clothes, and provide liability coverage too, while they’re at school. But check with your broker or agent to be sure.

Often Liability coverage, which could be the most important coverage, is overlooked. This coverage protects you, the student, in the event that you cause damage to another person or property. A simple act like knocking over a candle can cause thousands of dollars worth of damage. www.InsuranceHotline.com can quote the lowest tenants package from the 30 top insurance companies rates in Canada.

Students: Car Insurance

For the lowest car insurance rates, you might want to consider a car that does not need collision or comprehensive coverage. By not adding collision or comprehensive coverage, you can reduce your rate by a third of the cost. Comprehensive coverage generally covers fire, theft and windshield damage.

Many students use their car as a second home, leaving their clothes, sports equipment and books on the seats for all to view. Theft is a concern. If the items in your car get stolen, they are not covered under your car policy, with the exception of a single tape or CD. Items stolen from your car are covered either under your parent’s policy or your own tenants policy, less the deductible .

If you need your own car insurance, understand that insurance rate difference between insurance companies is the greatest for students and can be a thousand dollars apart. You need to do a rate search on www.InsuranceHotline.com to source which company has the lowest rate for you.

One final note: Accidents increase exponentially when there are three or more people in one car. This, coupled with a driver being inexperienced, increases the probability of having an accident even more. One at-fault accident could increase your rates by $5,000 to $10,000, and it will stay on your record for 6 years.

The Parent’s Home Insurance and How It Extends to Students

As a parent, you may be concerned about your child’s contents at university and how that affects your insurance. Most insurance policies extend coverage and liability to your student away at university. However, while this is the least expensive route, it may not be the best. First, check with your broker or agent to determine limits and coverages. Any claims incurred will affect your policy, so it may be best to set up tenants coverage in your student’s own name.

This way you can also select the necessary limit for the contents coverage. The parent’s policy restricts the amount of coverage for the student, usually to a limit of $5,000. If the student takes out his OWN coverage, they can select whatever coverage they need, as the cost of their computer could surpass the $5,000 limit. www.InsuranceHotline.com can direct you to the company with the lowest rate for you, and you can select your coverages and limits.

How a Parent’s Auto Insurance Extends to Students

Your auto policy also needs a review when you have a student heading off to university. Many companies offer discounts when the student is away at university, but it may depend on the distance between your home and the university. If your company does not offer this discount, it may be a good time to go to www.InsuranceHotline.com to check out prices with a company that does offer this discount, as the savings can be enormous.

Many parents wonder if they should take their student off their policy when they go to college. Generally, it is best to keep your student as a listed driver on your policy, so they have continuous insurance coverage. This can affect their rates when they get their own insurance. It also will provide benefits in case your child is injured as a pedestrian, cyclist or in someone else’s vehicle. Your policy would come into play if your student is injured in an accident involving any motorized vehicle.

Drivers Beware

Back to School means sharing the road with buses. Passing a school bus can land you a careless driving charge and, in turn, could result in a criminal conviction. And speeding in a school zone is considered a major ticket offence. Both charges play havoc with your insurance rates.

Our last survey indicated that 8% of accidents were a result of cell phone use, so when you’re calling your spouse to pick up the kids, call from a land line.

One final note: There are lots of inexperienced student drivers who will now be on the street and out of parental control, so be aware of them. And be careful.