All You Need to Know About Insurance For Students

I like to think I know my way around most insurance policies, but to give a more thorough overview I contacted a good friend of mine who is just finishing up his degree from the Asper School of Business at the University of Manitoba.  He is a third generation Insurance Broker and his father owns Wallis Agencies located in Glenboro, Manitoba.  In my experience they can answer pretty much any insurance question you may have.

 

Do You Need To Worry About Insurance For Students?

Insurance, as boring as it may seem is an essential part of your financial security.  Insurance is a unique industry because essentially you’re paying for something you hope you never have to use.  The most common form of providing insurance is done through brokers.  Insurance Brokers offer insurance policies from various companies and try to choose the company that fits your needs the best.  Brokers are used to ensure clients have the best service possible.  There are various forms of insurance to protect you from a financial loss.  The fundamental principle of insurance is sharing the losses of the few among the many.  In other words, insurance companies will collect premiums from a large group of people to cover a few losses.  The amount of insurance individuals pay depends on a large number of variables.  How close are you to a fire hall? How much is your dwelling worth? Have you had claims in the past? How fire resistant is your home?  There are other variables that can also affect the amount you are required to pay.

Insurance For Students
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Many people are confused or don’t understand what a deductible is or why it is necessary to be included in a policy.  Deductibles are placed on insurance policies by insurance companies to discourage clients from reporting claims that are too small.  A deductible is a set amount of money that the insured individual is responsible to pay for every claim they have.  For example if you have a $500 deductible on your $20,000 dollar garage, and it unfortunately burns to the ground, you will receive a check from the insurance company for $19,500.  If you have a claim that isn’t greater than $500 there is no sense in reporting the loss.  The lower deductible you have the more it will cost you per year.  With Manitoba Public Insurance they will add benefits to lowering your deductible as an incentive.  These benefits include reducing your deductible to zero for wildlife claims, theft claims, and glass repair.  Home Insurance will reduce your premium by a percentage for increasing your deductible.  For example if you increase your deductible from $500 to $1000 an insurance company may reduce your premium by up to 15%.  There is no single deductible option that will best suit everyone.  It is important to consult with your insurance broker on which deductible will best serve your needs.

The Basic Insurance For Students Is Contents Insurance, Or A Tenants Insurance

While in university students are still considered to be dependents of their parents or guardians.  For this reason the contents that you have are usually covered under your parent’s policy up to approximately $10,000 depending on the policy that your parents have.  Any losses you encounter will be subject to the deductible stated on the policy.  Contents insurance for students can be used for a number of things, but the main concern will be their laptops or personal computers.  Many insurance companies will give the option of “scheduling” certain items to reduce their deductible.  Typically deductibles are lowered to $25 or are reduced to zero.  Wawanesa Mutual offers coverage at just $1.50 per $100 of declared value.  So if you have a thousand dollar computer you will be paying $15 per year to insure your laptop with little to no deductible enforced.   Liability coverage is also extended to students who are deemed to be dependents of their parents.  Liability insurance covers you when there is damage done to another person’s property and you are found to be negligent.  No, this does not cover you if you get wasted and burn down a residence on purpose.  This is coverage for when you do something accidently that causes a loss to another person.  For example, you slip and knock a sink off a wall and flood three floors of a building.  Make sure to check with your broker whether or not your parent’s policy will extend to you at university.

Car Insurance For Students

For students with cars at university it is imperative to ensure you have the proper insurance, otherwise you could leave yourself with no protection.  For students whose family live in the city of your university they must insure their car as all-purpose.  The guideline for when you have to switch your vehicle to all-purpose is whether you are driving to or from work or school four days per month or more.  Rural students who are moving to a city to attend university should license their car as a commuter.  This means you are travelling back and forth between your area and the city of your university.  These are Manitoba laws, for guidance outside of Manitoba contact your local broker.

Currently there has been a common practice of young adults insuring their vehicles through their parents name to receive the discounts of their parents.  Manitoba Public Insurance has started to crack down on this practice.  Whoever has care, custody, and control of the vehicle should be the registered owner and premiums will be based on that information.  MPI legally can void an insurance claim if it is deemed that there was a wrong-doing by the registered owner.  The reason for this strict policy is MPI wants the correct level of premiums paid based on their risk assessment of the driver.

For those students who plan on taking a trip south of the border be sure to contact your broker for travel insurance.  Travel insurance covers you for any medical bills you may have encountered on your trip to Vegas that you think that you went on (bills for such scenarios as trying to remove your own teeth to prove you can… I’m not sure about face tattoos).  For young adults this is a low cost, usually around $15-$20 for a three or four day trip to the US.

Once you are no longer attending university and take on a career you are no longer covered as a dependent and need to look after your own insurance.  For people living in an apartment this will involve a tenants package.  This covers you for the possessions you have in your apartment as well as liability.  Tenants packages are relatively cheap starting around $100.  The premium you pay will depend on a number of variables.  You can choose your deductible with these policies as well as choose how much liability you want covered.  If you have bought a house you probably had to finance this large purchase.  Most financial institutions will require your home is insured to secure their portion of the loan if a major loss occurs.  See a broker today to apply for a tenants package or a homeowners policy.

Your best Insurance is an Insurance Broker!

 

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