When your children reach 18 years of age, they’re considered adults in many facets of life. But when it comes to insurance, it can get a little tricky.
For example, Michigan law does not specify a limiting age for dependent children. But a child that you’re sending off to college has different insurance needs than your college graduate who is unmarried and living at home.
This guide will help you answer some of the questions you may have about insuring your adult children, no matter where they’re at in life.
My children have left home for college. Do I still have to include them on my auto policy?
Yes. They are still considered a member of the household and when they come home to visit, they will have access to the family car. If they do not have a vehicle with them, you may be eligible for reduced premiums if the college is more than a certain distance (100 miles, for example) from your home. They are also covered as a pedestrian and a passenger of a vehicle for their injuries if they are hit by a motor vehicle.
My child took a car with them to school, do I need to let you know?
Yes, we may need to update the garaging address for their vehicle.
My child purchased a car that is titled to them. May I put it on my auto policy?
Since they are a titled owner of the car, they would have to be a named insured on your policy to keep it on your policy. More than likely, they should have their own policy. They will still get your discounts as long as they live in the household.
I cosigned for my child’s car but they don’t live at home, do I need to be on their auto policy?
Not as a named insured, but as an additional insured. This appears similarly on the policy as the lender.
Does my child need a renters policy when in a dorm room on campus?
Your home policy will cover their belongings in a dorm room. It may be a good idea to still get a separate policy to keep their claims off of your home account and likely have a lower deductible.
Does my child need a renters policy when living off-campus in an apartment?
Yes, you will want to make sure their belongings and liability are covered in the apartment.
If their roommate has a renters policy does my child need one as well?
Yes, the roommate’s policy does not cover your child’s belongings or liability.
Should I cancel their renters' policy when they return home for the summer?
No, if they have put their belongings in storage the renters will afford them coverage at the storage unit. It is easy to change the address to your address and then change it again when they return to campus life.
My child has their musical instrument, laptop, or another valued item at school, how should this be covered?
These items can be added to the policy with an endorsement so they have more comprehensive coverage and with no deductible.
Should I get the student health policy offered by the college or university?
This depends on the medical insurance you already have. If your child is far from home and you have an HMO it may be a good idea to make sure they have coverage on campus. Talk to your health care provider.
My child is age 26 and can no longer be on my health insurance. What do I do?
We have staff that specializes in health insurance ready to help find the best health plan for their needs. We can even help you with ACA plans.
I recently had a life-changing event such as job loss, divorce or death of a spouse. How do I get coverage for my child now that open enrollment is over?
Health Insurers recognize that life throws us curve balls. An event such as mentioned entitles you to make changes, even if it is not open enrollment.
At what age should I buy life insurance for a child?
Ideally from day one. The unfortunate reality is the possible financial burden on the family if something were to happen. For a minor cost, that issue could be handled.
Why do I need life insurance for my student?
If you cosigned for student loans, an automobile, or an apartment, you should get a life policy for at minimum the amount of the loan or rent. This will protect you should the unthinkable happen.
Does life insurance cost a lot?
For a young person in good health, the rates are typically very affordable.