Dear Deborah

0 comments Posted on September 3, 2013

Dear Deborah,
My oldest child is off to college. I’ve heard that this is a good time to review our family’s insurance coverage. What areas should I be especially aware of? — Nora

Any time life circumstances change, it’s important to review one’s insurance coverage.

This is a good time to adjust car insurance and life insurance contracts, if necessary. Talk to your insurer about recent family changes.

artdebtfreelivingAuto Insurance Policy
Teenage drivers can easily increase the cost of auto insurance bills. However, consumers don’t need to overpay for auto insurance. Here are ways to save money:
When a teen driver is added to the existing family policy, discounts can pass through the family policy to him or her. Save by having your teen drive the less expensive car.

Ask your car insurer whether there are good student discounts. High school and college students can save money on car insurance if good grades are maintained. If students have a B average or better, they can generally get a good student discount. These discounts can dramatically cut costs over time.

Some auto insurers give discounts if the college student lives on campus without the use of a car. If the student attends college more than 100 miles away and does not have a car while on campus, the policy cost will go lower.

Life Insurance Policy
Life insurance is a way to protect family members who depend on wage earners for financial support.
Have a life insurance policy that covers you at least until your children graduate from college.

Keep the life insurance policy current. Besides replacing income, another benefit of a life insurance policy is that this income is tax-free.

livingbalancedRental Insurance
If the college student is renting a home or apartment, he or she will benefit from having rental insurance.

This protects personal property that will need to be replaced if lost or stolen. Paying out of pocket for lost valuable assets could be costly.

Rental insurance is also important for liability purposes. It’s possible that the student could be sued by someone for injury in the home or apartment.

Copyright 2013. All rights reserved. Permission to reprint required.

Deborah Nayrocker writes on personal money management topics, showing others how to take control of their financial future. She is the award-winning author of The Art of Debt-Free Living and the popular 12-lesson Bible study Living a Balanced Financial Life. Her Web site is

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