Parents: don't let graduation dent your insurance
SEATTLE - High school graduation can be an exciting time as young
adults and their parents move to a new stage of their lives. Preparing
for college, finding a job and possibly a place to live are just
a few of the tasks graduates will face this summer as they ready
themselves for life after high school or college.
During this hectic period, families can easily overlook needed
adjustments to insurance policies that cover their young adults.
"Graduation is a time to celebrate achievement and a bright future
for graduates," said Karl Newman, NW Insurance Council president.
"It's definitely not the time to find out that you don't have
enough coverage, or the right coverage, if an accident happens."
Often, a family might not need more coverage, just changes in
the way the coverage is set up. NW
Insurance Council encourages graduates and parents to call
their insurance companies or agents to ensure their coverage needs
Here are a few scenarios that should raise a red flag for graduates
- A high school or college graduate permanently moves away from
home. This creates a possible coverage problem for personal
property, since a child must reside in the parent's household
for the child's personal property to be covered under the parent's
policy. If the graduate permanently relocates, he or she may
need an inexpensive Renters
- A high school or college graduate takes a summer job as a
delivery person for a pizza parlor and uses his or her own car
(or one owned by parents) to make deliveries. Since many personal
insurance policies exclude deliveries, this creates a coverage
problem for damage caused in an accident that happens while
- A high school or college graduate gets involved in a volunteer
program transporting young people, the homeless or the elderly
from one place to another and uses his or her own car (or one
owned by the parents). The parents could be liable, according
to their auto policy, for injuries or property damage that happen
while their child is driving.
- A graduate gets a job and starts driving a family car much
more often. If the car is insured through the parents, this
could create coverage problems because some policy options specify
that the car will not be driven to work or will only be driven
a limited number miles per day.
As parents and seniors prepare for graduation day, it's important
that families check with their insurance companies or agents to
understand how coverage may need to be updated. A few minutes
adjusting coverage can prevent long-term headaches after this
year's graduates continue down the walk of life.
For more information on insurance for graduates, contact NW
Insurance Council at (800) 664-4942.
NW Insurance Council is a nonprofit public-education organization
funded by member insurance companies serving Washington, Oregon