Your Guide to Back-to-School Insurance Questions
It’s back to school time. Kids and parents are getting organized and you need to make sure that insurance coverage is on the list. Does your car insurance cover your kids driving to school? Does your home insurance cover your child’s belongings if they are away at school?
Let’s get these questions answered so that back to school can get off to a smooth start. Make sure that your children are protected with insurance coverage whether they’re driving to school, living in a dorm, or an apartment on their own.
Western Financial Group, a 100% Canadian company, can help you navigate car, home, and business insurance during this period of economic uncertainty.
Here’s what you need to know about insurance and back-to-school coverage
Car insurance
Does your child live at home and drive to school sometimes?
Did you know? If your student lives at home and drives your car to school only some of the time, you can add them to your car insurance policy as an occasional driver.
This means they would be driving your car to school only occasionally. Adding a student as an occasional driver is likely a more affordable solution than providing them with their own vehicle and car insurance.
What’s the benefit of keeping my child on my car insurance when they live at home?
Keeping your child on your car insurance policy while they live at home helps maintain continuous insurance history. This can help your child get lower car insurance rates when they get their own insurance policy in the future.
What if I get a new or used car for my child to drive to school?
If you buy a new or used car for your child to drive to school and keep the car in your name while your child lives at home, you can save money on car insurance by asking your car insurer for a multi-vehicle discount.
Most insurance companies offer multi-vehicle discounts, typically between 5% and 15% on your annual car insurance premium, when you insure more than one vehicle under the same policy, at the same residential address.
At Western Financial Group, we help Canadians understand what their car insurance covers and offer expert advice to make sure you’re protected for life’s unexpected events.
What if my child is driving to school and using the car more than me?
If your child is driving the family car most of the time and more than you, they should be listed as the primary (principal) driver of that vehicle. This ensures accurate coverage but note that it may cost more than an occasional driver listing on your car insurance.
Do I need to tell my car insurance provider that my child is driving the family car to school?
Yes, tell your insurer that your child is driving the family car to school. Always update your car insurance provider with details about who is driving the family car, how often, and whether your child is using your car as a primary driver.
If my child attends school in another province and drives a family-owned car there, how does car insurance coverage change?
You must inform your car insurance provider when your child, and the vehicle, will be based out-of-province because rates and coverage can change depending on where the car is primarily kept and driven.
Most Canadian car insurance policies allow out-of-province use within Canada (and the U.S.) for a limited period, typically up to six consecutive months. After that, your car insurance may become void unless you re-register the vehicle and purchase local insurance in the new province.
To maintain eligibility, your child and the car should return home at least once every six months, keeping receipts for maintenance or travel as proof.
Your car insurer will require notification if your child takes a family car to another province, even temporarily for school.
Contact your car insurance provider before your child leaves with the vehicle to another province. This ensures that your car insurance coverage remains valid and complies with both provincial insurance regulations and car insurance policy terms.
I am getting car insurance for my child. What do I need to know to get the right car insurance?
- Compare quotes: Shop around and compare quotes from multiple insurance providers to find the best rate. Using online comparison tools can save time and money.
- Consider a higher deductible: Opting for a higher deductible can lower your monthly premium. Just make sure you have enough savings to cover the deductible if needed.
- Drive a safe and reliable car: Insurance costs can be lower for cars that are known for their safety and reliability. Cars with high safety ratings typically have lower insurance premiums.
- Limit coverage: If the car is older and not worth a lot, consider dropping optional comprehensive and collision coverages to save on insurance costs.
- Keep a clean driving record: Avoiding tickets and accidents will help keep insurance premiums low.
- Ask about available student discounts, multi-vehicle savings, and good student incentives.
Home and tenant insurance
Does home insurance cover university and college students?
Yes, your home insurance policy will cover your son’s or daughter’s belongings when they are away at college or university, if their primary address is the one listed in your policy.
When doesn’t my home insurance cover my child’s belongings when they’re away at school?
If your college or university student’s address is now different from the one listed on your home insurance policy, they need renters’ insurance to cover their belongings.
You may need additional coverage for high-value items like smart TVs, laptops, and gaming systems. Speak to a Western Financial Group home insurance expert about this.
Should I get my child tenant insurance if they’re living in an apartment off campus?
If your post-secondary student’s primary address is different from your home address, which is the address on your home insurance policy, they will need renters’ insurance to cover their personal property and any accidental damage to their new premises.
Tenant insurance covers personal belongings and liability for property damage and injury to guests. It also covers theft of and damage to personal property like electronics, furniture, and clothing, damage to their rented home, and liability for injuries to visitors.
Tenant insurance also covers fire and typically covers break-ins and theft of your personal belongings from your rental unit.
How does insurance cover my child’s laptop and other devices when away at college/university?
Your home insurance policy as parents will cover your child’s belongings when they are away at school as long as their primary address is the one listed in your policy. If your child is living at a different address, tenant insurance protects their belongings.
Did you know? Some home insurance policies have limits and exclusions for gadgets and electronics.
Check the details of your home insurance policy to see how the theft, damage, or loss of electronics would be covered while your child is away at university or college. You may need extra insurance coverage for them.
Final thoughts
Start the new school season knowing that your child is protected with insurance whether they’re driving to school or living away from home.
5 FAQs
How does adding my student as an occasional driver affect my premium?
Adding your student as an occasional driver on your car insurance policy will generally increase your premium, but less than if they were the primary driver. It depends on several factors, such as your student's age, driving experience, and driving record. A Western Financial Group car insurance expert can help you get car insurance for your student driver.
Will adding my student remove any discounts I currently have on my policy?
Certain discounts you currently have may be reduced or lost once you add a young or new driver like a student to your car insurance policy because insurers often view student drivers as higher risk. Make sure that you ask your car insurance provider how any discounts would be affected.
When do college and university students need renter’s insurance?
If a post-secondary student’s main address is different from the address on their parent's home insurance policy, they will need tenant insurance to cover their personal property and accidental damage to their home.
Why do students need insurance for their belongings?
Students can be prime targets for theft and break-ins because many have expensive electronics like laptops, phones, tablets, and other valuable items. If they’re living on their own at a different address than their parents, their parents’ home insurance doesn’t usually cover their belongings. It’s expensive to replace personal items like computers, smartphones, clothing, and textbooks. Insurance helps financially protect you in the case of a loss.
When do away-at-school students need travel insurance?
Travel insurance covers emergency and non-emergency medical costs for Canadian students travelling or studying abroad. Student travel insurance is also recommended if your child is going away for a week-long trip during university or college break week.
