📚 The College Insurance Situation
Good news: you can often stay on your parents' policies. Bad news: there are gaps and exceptions. Here's what every college student needs to know.
Health Insurance
✓ Stay on Parents' Plan Until 26
Thanks to the ACA, you can stay on parents' health insurance until age 26—even if you're married, not in school, financially independent, or not living at home.
But watch out for:
Out-of-network issues: If you go to school out of state, your parents' plan may have limited coverage. Check if campus health centers are in-network.
School-required insurance: Some colleges require students to have their own plan or buy the school's plan. You may be able to waive this if parents' coverage is adequate.
Car Insurance
If Car Stays at Home
You can often be removed as primary driver (saving money) if the car stays at your parents' house. You're still covered when you visit and drive it.
If Car Goes to Campus
You typically stay on parents' policy. Rates may increase if campus is in a higher-risk area. Let insurer know—address matters for rates.
Student Discounts
- • Good student discount: B average or better = 10-25% off
- • Distant student discount: Car at home while you're 100+ miles away = reduced rates
- • Driver's ed completion: May still apply if recent
Renters & Property Insurance
In the Dorm
Parents' homeowners/renters insurance usually covers your belongings in a dorm—typically up to 10% of their coverage. Check with their insurer to confirm.
In an Off-Campus Apartment
You need your own renters insurance. Parents' policy usually doesn't cover you once you're in your own apartment. Only $15-30/month and includes liability protection.
What to Insure
Laptop, phone, gaming systems, bike, textbooks—add it up. Most students have $5,000-$15,000 in belongings. Renters insurance is cheap peace of mind.
When You Need Your Own Policy
You Need Your Own Car Insurance If:
- • Car is titled in your name only
- • You're married
- • You're financially independent
- • You live in a different state permanently
You Need Your Own Renters If:
- • Living off-campus in apartment
- • Parents don't have homeowners/renters
- • Expensive items exceed parents' coverage limits
College Insurance Checklist
- Confirm you're covered on parents' health insurance (and check network at school)
- Ask parents' auto insurer about good student and distant student discounts
- Verify dorm belongings are covered under parents' homeowners
- Get renters insurance if living off-campus ($15-30/month)
- List and photograph valuable items for potential claims
The Bottom Line
Most college students can stay on parents' policies for health and auto insurance—take advantage of it. The main gaps are off-campus renters insurance (get it, it's cheap) and out-of-network health issues if you go to school far from home. Always ask about good student discounts—your GPA can literally save you money.