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9/12/2012 - Kid off to college? Three insurance adjustments that may need to be made

Kids moving to college may have insurance implications.

With school now back in session for virtually everyone, students and their parents may be back into their standard routines in the early fall months. But for some, specifically those who are in college, they've entered a new period in life that's far different from the one they may have had, as they're now living on their own and taking care of personal expenses.

Now that these students are out of their parents' house, changes and adjustments may need to be made to something that young adults may have not been familiar with until now: insurance. With this in mind, industry experts tell The Associated Press what refinements may need to be made.

1. Auto insurance. One of them is with regards to auto insurance. In order to save money, teenagers may have joined their parents' plans while they were in high school. Now that these young policyholders have a driving history, however, they may want to venture out and start their own.

That shouldn't suggest that college-aged kids won't be able to take advantage of certain discounts, though. Insurance professionals tell the AP that premiums may be trimmed significantly if students perform well in their classes. Furthermore, if they decide they want to stay on their parents' plans, they may be able to save their moms and dads as much as 10 to 20% off their policies, provided school is more than 100 miles away and students don't take a car with them to campus.

2. Property insurance. Another coverage adjustment newly independent young adults and their parents may want to account for is property insurance. The AP notes that students often need to bring various electronics with them to school for study and entertainment purposes, which can be worth thousands of dollars in value. Because they're often highly sought after by thieves, they could be stolen if not handled properly. Parents' homeowners insurance policies often have coverage that can accommodate this need, but plans vary, so it may be wise to talk with an insurance agent about policy limits.

3. Renters insurance. Something else that college students may want to look into is renters insurance. This policy is similar to a home insurance plan - as it provides coverage for valuables that are lost stolen or destroyed due to vandalism or fire - only significantly cheaper because it doesn't need to protect a home's structure. The news agency notes that a standard renters insurance policy can cost as little as $100 to $200 per year with deductibles in the $50 to $100 range.

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