Insurance For a College Student: Everything You Need To Know

College insurance is a safe way to secure student well-being during an academic year. There are several types of coverages for a person going into college:

  • Health insurance
  • Car insurance
  • Renter’s insurance
  • Tuition insurance.

College allowance covers bigger than math homework help issues for a student. Yet, it would be wise to learn more about all coverage options before choosing one.

Health Insurance Overview

Health insurance is relevant in the time of a pandemic academic year. Young people and their families should choose health coverage according to their funds and the place of learning.

Choosing a college health insurance plan

Colleges provide health insurance as a part of the annual academic payment. The cost for annual health security plans varies from 2000$ to 4000$. In this case, a person has a full coverage of medical expenses during a year in college. On the other hand, out-of-pocket copays and deductibles are generally lower in this plan.

Yet, there are other options for students’ health coverage.

Sticking to family health insurance plan

A person may choose to stick to the family health insurance plan until they reach the age of 26. In this case, a family should include their child during the Open Enrollment or Special Enrollment period.

This option may be cheaper than the college insurance policy. But, there is a downside too. Family insurance’s provider network may not reach the college. So, make sure to check this information before enrolling in a family plan.

Families may pay for deductibles for out-of-network coverage to make sure that their child receives full medical care if needed without any issues.

Individual health insurance plan

If a college or family insurance plan does not work, a person may choose an individual plan. Several federal programs can provide subsidies for low-income families.

A person may apply for the Medicaid program. This program is a great option for people from low-income families. Yet, the program works in a limited number of states.

The Affordable Care Act is another federal program that may bring benefits for students. The program has a limited network for colleges also. Still, in combination with Medicaid, young people may find an affordable health insurance program for the college of their choice.

Besides, fourteen states, including Columbia, have health insurance marketplaces. And if you have missed the deadline for Open Enrollment, you can always apply for the special one.

Parents should pay attention to coverage for behavioral therapy of college plans. The mental health of young people is a rising concern, and many insurances include the services of a psychologist as well.

If a person already receives mental health therapy, their parents should contact counseling centers to arrange the therapy continuation during the academic year.

Details on the enrollment

To opt out of college health insurance, students need to submit a decline request with a copy of their insurance card. Usually, the deadline for this procedure is the end of Summer or the start of the first Fall semester.

If a student is planning to stick to other health insurance options, they should send the decline request annually.

You should know that the 529 plan cannot cover your health insurance. College insurance has a “nonqualified” category in the 529 savings. You may pay a tax or even a penalty.

There are no taxes for the 529 money withdrawn for eligible costs such as:

  • Tuition
  • Mandatory fees
  • Handbooks
  • Housing and supplies

Car Insurance for College Students

Car insurance is an important part of the family’s funds when a child goes to college. Even if a young person does not use a car, there are certain benefits and discounts.

First of all, if a student uses a family car with insurance to go to school, a family should notify the insurance company. An insurer may refuse to pay insurance if a car was replaced out of its network.

There are discount options for people who go to college without a family car. You may apply for the “student away” discount if a college is 100 miles away from home and one should get there by car.

You may also look for “good student” discounts. Families may receive such types of discounts if their children receive high grades or other proof of exemplary academic performance.

Renter’s Insurance

Renter insurance is another way of securing students’ belonging. Usually, students’ items fall under their parents’ house owner policy. This is the case when people live in a dorm or any other type of on-campus housing. Yet, this policy does not protect belongings if they are in a rented apartment.

In this case, renter insurance will help to keep things safe. It covers students’ belongings in the case of accidents and thievery. Besides, renter insurance may cover the items that were stolen outside of the residence.

If you are going to live outside of campus, renter insurance is a viable choice for securing your items.

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Tuition Insurance

There are many unpredictable situations during the academic year. Learning in a college may be disturbed abruptly, and it will be difficult to return money paid for the academic year. Tuition insurance exists for that purpose.

This type of insurance covers family investments in education, taxes, and living expenses if a student has to leave college. Tuition insurance works in the case of illness or a major injury. The policy can cover even mental health issues.

Covid issues are not typical for this type of insurance. Make sure to clarify this point if you want to apply for tuition insurance.

Final Words

Insurance is a lifeline during an academic year. There are different models and different options for enrolling in it. There is no too expensive or too fancy insurance for a student.

Compensation for one’s losses in every field may help avoid undesirable consequences. Health insurance is the most common and widely spread type of insurance for students.

Make sure to submit an application to opt-in or out in time. Choose the most appropriate program for you, and be safe.

Tony Bennett

Tony Bennett

Tony Benett makes his living in the insurance industry by teaching and consulting. He is also recognized by the legal profession as an expert on insurance coverages. His insurance experience includes having worked at the company level, owned an independent general agency and having worked for an insurance association. He has received various certificates over the past few years and helps his clients and readers by giving them a realistic outlook on what they can expect to achieve within their set targets. At Insurance Noon, he is known for his in-depth analysis and attention to details with accuracy. He has been published as one of the most referred agents by his peers in the insurance community. Tony loves the outdoors and most sport events. His passion other than providing excellent advice is playing golf.