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What is a Distant Student Discount?

Every autumn, a new batch of college freshman and their parents travel far and wide to campuses across the country for the next step in life. So now what? Is the parent’s job done? Probably not, and there are some insurance questions many parents have when it comes to their child and being away at school. What if something happens to their possessions, how is that covered? What if the child isn’t allowed a car on campus, is it best to take them completely off the auto insurance?

If your son or daughter attends college away from home, it may have an impact on the rates you pay to cover them as a dependent. Some carriers offer a “Distant Student” discount to students who attend school more than 100 miles from home without access to a vehicle. Other insurers offer similar programs; terms and mileage vary by insurer.

What’s weird is nearly half of all parents of college students fail to make that call, according to the Independent Insurance Agents & Brokers of America. As a result, they wind up overpaying as much as $3,000 on car insurance by the time graduation rolls around.

Nowadays students are bringing more and more expensive items to school with them. Laptops, flat screen tvs, tablets, etc… The list could go on and the last thing any parent or student is thinking about is someone making off with their laptop or a dorm room fire.

If your student is living in a dorm or other on campus housing, their belongings may be covered under your homeowners or renters insurance policy. You’ll want to check with us to make sure, but the National Association of Insurance Commissioners says that students who are younger than 26 and living on campus may be covered through your policy. The coverage is usually limited to 10% of the personal property coverage on your homeowner’s policy, liability from your homeowners policy will also extend to cover your child.

While we can’t keep an eye on your student for you, we can help put your mind at ease by reviewing your coverages and ensuring that you have all the right limits in place to protect your child, and possibly save you some money along the way. Give us a call at 309-266-7300 to discuss your policy.

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