College graduation is an exciting, yet nerve-wracking time in most students’ (and parents’) lives. Facing student loan repayments, first “grown up” job jitters, and leaving the security of university can leave graduates feeling less than celebratory. This is also about the time your child will need to take the reins of their own insurance coverage.
As insurance professionals, O’Connor Insurance knows the wide world of coverage can be a confusing topic. We also know that seemingly small missed details can result in very large losses. We want to make sure your graduate is prepared to make decisions regarding their coverage and understands what they are paying for. Here a few things to think about when talking about insurance with your graduate.
- Review your family’s current insurance. The first step when considering insurance for your new graduate is evaluating the coverage you currently have. Make an appointment with your agent who can advise on whether it’s appropriate given the pending changes and whether it will cover your son or daughter.
- Know the law. Most states require drivers to have auto insurance and most of those have minimum policy limit requirements. In Missouri, the minimum amount of coverage you are required to have is $25,000 per person for bodily injury; $50,000 per accident for bodily injury; and $10,000 per accident for property damage. Research the law in your son or daughter’s stat, or consult with your agent to make sure they are covered adequately. And remember, the minimum is just that – anything above that amount will be paid from your pocket.
- Read the lease. Many apartments, condominiums, and home rental properties require tenants to maintain a certain level of renter’s insurance which covers the contents of the home in the event of a robbery, fire, or other loss. Make sure you know the terms of your son or daughter’s new lease and insure them accordingly.
- Don’t end up liable. Any home renter or owner is exposed to liability risk. To ensure there is adequate coverage in the event someone gets injured on your son or daughter’s property, speak with your agent about liability insurance.
- Know your graduate’s company benefits. Many college graduates move straight into the workforce where they will be eligible for certain company benefits. Study the company’s human resources handbook to learn what benefits are available, when they go into effect, and what their limitations are.
Remember, even though your graduate now carries a college degree, they may not be carrying the insurance coverage they need. Set up a meeting with your insurance agent at O’Connor Insurance and your graduate to review coverage. We would be happy to “school” them in the wide world of insurance. Call us at 314.434.0038 to set up an appointment.