The College Student’s Guide to Insurance

College students should consider maintaining multiple types of insurance to cover the various risks they may face on campus including theft of their personal belongings, damage to their vehicles and sudden illnesses or injuries that necessitate medical services. High tuition and room and board costs can already place a significant financial burden on many students, so it’s important to have insurance to protect against situations that could put you in even more debt.

Continue reading to learn more about insurance for college students including when coverage is required and what optional coverage types are worth considering.

On This Page

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  Do You Need Insurance if You’re a College Student?

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  What Types of Insurance Should a College Student Get?

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  How To Get Insurance for College Students

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  FAQs

Do You Need Insurance if You’re a College Student?

Certain types of insurance may be legally mandatory for college students depending on their circumstances. For example, car insurance is required by law for drivers in every state except for New Hampshire.^[1] In addition, California, the District of Columbia, Massachusetts, New Jersey and Rhode Island impose penalties on residents who don’t maintain health insurance that complies with the Affordable Care Act (ACA) unless they qualify for an exemption.^[2]

Other types of insurance generally aren’t required by law. Nevertheless, it’s recommended that college students maintain multiple coverage types regardless of whether they’re required in order to protect themselves and their property against risks they are likely to encounter in their day-to-day lives and set themselves up for long-term financial success, according to Dalton Tigner, an agent at Tigner Insurance & Associates.

“Students should prepare for medical emergencies, property loss and accidents,” Tigner said in a message to SmartFinancial. “I’ve seen clients stuck with $5,000 medical bills, lose $10,000 of belongings in a fire or owe $15,000 after totaling a car. Saving money in college will pay off later in life.”

What Types of Insurance Should a College Student Get?

See the below sections for a rundown of the most important types of insurance for a college student to consider.

Car Insurance

Even if you don’t plan on taking your car with you when you move on campus, you still shouldn’t cancel your car insurance because auto insurance is legally required and letting your coverage lapse can lead to higher premiums later on. This can potentially make for a burdensome expense since car insurance tends to be expensive for drivers in their teens and early 20s.

Fortunately, many auto insurers offer discounts designed to help college students save money on car insurance. For example, if you leave your car at home and remain on your parents’ car insurance policy while you are on campus, they may qualify for a student-away-at-school discount. Additionally, a good student discount may apply to a policy that covers an active student with at least a B average.^[3]

Along with purchasing liability insurance and other coverage types required by law in your state, you may want to buy a policy that includes roadside assistance coverage. In addition, your lender will likely require you to have collision and comprehensive coverage while you are financing your vehicle and it’s a good idea to keep these coverage types unless you have an older vehicle worth around $4,000 or less.^[4][5]

Renters Insurance

If you live in an off-campus apartment, then you should purchase renters insurance. It may be required by your landlord and, even if it’s not, it can be a helpful safety net in case your belongings are stolen or damaged by a sudden peril. Keep in mind that you and your roommates may need separate renters insurance policies if you are not married or otherwise related.^[6]

Meanwhile, if you live in an on-campus dorm, you may not need your own renters insurance since your belongings should be covered by your parents’ renters or home insurance policy. However, you should note that a policy’s off-premises coverage limit may be restricted to 10% of the policy’s overall personal property coverage limit, so you may need to evaluate whether this limited coverage is enough to amply insure all of the belongings you will be taking with you to college.^[7]

As an alternative, some universities directly offer dorm insurance that comes with a lower deductible than homeowners insurance, making it a helpful option for receiving timely reimbursement for small claims such as a single stolen laptop.^[8]

Health Insurance

Colleges often require students living on campus to maintain health insurance and, in many cases, they directly offer student health insurance plans.^[9] Of course, you can generally waive your university’s campus health plan if you have health insurance coverage from another source.

In most states, you can remain on your parents’ health insurance plan through age 26, so this may be the simplest way to meet your school’s health insurance requirement if you were already covered before college.^[9] That said, you should pay attention to your current plan’s provider network and whether routine health care and mental health services would be covered at nearby medical facilities, especially if you move out of state for college.

Alternatively, you can shop for coverage and buy health insurance through the federal Health Insurance Marketplace or your state’s equivalent marketplace if you believe you can find ACA-compliant health insurance options at a lower price than your college’s student health insurance plan or your parents’ plan won’t cover health care in the area you move to for college.

Other Insurance Policies To Consider

If you happen to buy a home while you’re in college, then your mortgage lender will probably require you to carry homeowners insurance. Even if you don’t have a mortgage or your lender doesn’t require it, home insurance is still beneficial since it can cover your home, belongings, additional living expenses and liability concerns.

There are also several reasons to consider buying life insurance while you are in college. For example, coverage is usually cheaper the younger you are when you buy your policy and you face little risk of being turned down due to poor health at a young age. In addition, buying a permanent life insurance policy early gives your policy more time to accumulate cash value.

Finally, you may want to consider various types of supplemental health insurance such as dental and vision coverage when insuring a college student. These standalone policies can cover routine dental cleanings and eye exams, which can be beneficial since not all health plans cover these services for adults.^[10]

How To Get Insurance for College Students

It’s important to compare quotes from multiple insurance carriers to make sure you’re getting the best insurance for college students at an affordable price. Unfortunately, reaching out to each insurance company individually to request quotes for college student insurance can make for a tedious process.

That’s why you should shop through SmartFinancial. Simply answer some questions about your coverage needs and then we’ll connect you with agents who are prepared to help you find the best policy for your circumstances. Click here if you’re interested in comparing auto, renters or health insurance quotes for free.