Insurance for College Students: What You Need to Know
What college students actually need to insure
College students need two separate types of insurance: health insurance and auto insurance (if they own or drive a car). Health insurance is required by law in most states and covers medical care. Auto insurance is required by law in every state if you drive, and it covers damage to your car and liability if you cause an accident.
The question for most families is not whether to buy these, but how — whether your student stays on your family plan, gets their own, or some combination. The answer depends on your state, your insurance company's rules, where your student lives during the school year, and whether they have a car on campus.
Many students think they do not need insurance because they are not working or because they live in a dorm. That is not how insurance works. If your student drives a car — even occasionally — they need auto insurance. If they get sick or injured, they need health insurance. Both are legal requirements, not optional.
Key Takeaways
- Most college students can stay on a parent's health insurance plan until age 26, even if they live away from home or go to school out of state.
- Auto insurance follows the car, not the driver — if your student drives your car, your policy covers them, but you should tell your insurer they are away at school.
- If your student owns their own car, they need their own auto insurance policy, which is usually cheaper if they maintain good grades or take a defensive driving course.
- Some colleges require proof of health insurance before enrollment, so check your school's requirements before the semester starts.
- If your student drives frequently or has their own car, notify your auto insurer of their college address to avoid coverage gaps.
Health insurance for college students
Federal law allows you to keep your college student on your health insurance plan until they turn 26, regardless of whether they live with you, go to school out of state, or are married. This applies to most employer plans, individual plans, and marketplace plans. You do not have to claim them as a dependent on your taxes for this to work.
Before your student starts college, check your plan's documents or call your insurer to confirm three things: whether the plan covers care in your student's college town, whether they need to use in-network providers, and what the deductible and out-of-pocket limits are. If your student goes to school far from home, an out-of-network emergency room visit can be expensive even with insurance.
Some colleges require proof of health insurance as a condition of enrollment. If your plan does not meet your school's requirements, or if you do not have health insurance, the college may automatically enroll your student in the school's plan and charge you for it. Check your college's health insurance requirements before classes begin — usually found on the student health center website.
If your student works part-time and their employer offers health insurance, they can take it instead of staying on your plan. This is rarely cheaper, but it may be worth comparing if the employer plan has lower out-of-pocket costs for the services your student uses most.
Auto insurance when your student drives your car
If your college student drives your car — even just occasionally — your auto insurance policy covers them. You do not need to add them to the policy or buy a separate policy for them. However, you must tell your insurer that your student is away at school and will be driving the car only occasionally or not at all during the school year.
Why tell your insurer? Because your rate is based partly on how much the car is driven and who drives it. If your insurer thinks your student is driving the car daily in a college town, they may charge you more than if the car sits mostly unused at home. Conversely, if your student drives the car frequently and you do not tell your insurer, a claim could be denied if the insurer discovers you misrepresented the car's use.
If your student will drive the car regularly — more than a few times a month — ask your insurer whether it is cheaper to add them to your policy or to buy them a separate policy. Some insurers offer discounts for students who maintain a certain grade point average (usually a B average or higher) or who complete a defensive driving course. These discounts can offset the cost of adding them to your policy.
Auto insurance when your student owns their own car
If your college student owns a car, they need their own auto insurance policy. This is a legal requirement in every state. You cannot put the car on your policy if your student owns it and drives it regularly — the policy must be in the name of the person who owns the car.
A student's first auto insurance policy is usually more expensive than an adult's because insurers charge higher rates for drivers under 25. However, several discounts can bring the cost down. A good student discount (usually for a B average or higher) typically saves 10 to 15 percent. A defensive driving course discount saves another 5 to 10 percent. Some insurers also offer discounts for bundling auto and renters insurance, or for paying the full premium upfront instead of monthly.
When your student gets a quote, they will need to provide the car's vehicle identification number (VIN), their driver's license number, and their college address. The address matters — insurance rates vary by location, and a college town may have different rates than your home address. Make sure the insurer has the correct address.
If your student is on your family plan for health insurance but has their own auto insurance, that is fine. The two are separate and do not affect each other.
Renters insurance for college students
Renters insurance covers your student's belongings — laptop, clothes, textbooks, furniture — if they are stolen or damaged by fire, theft, or certain other events. It does not cover damage to the building itself (that is the landlord's responsibility) or damage caused by floods or earthquakes (those require separate policies).
Many students think their parents' homeowners insurance covers their belongings in a dorm or off-campus apartment. It usually does not. A homeowners policy covers property in the home it insures, not property in a separate location. If your student's laptop is stolen from their dorm room, your homeowners insurance will not pay for it.
Renters insurance for a college student is inexpensive — usually $15 to $30 per month — and covers up to a certain amount of belongings (often $20,000 to $30,000). Before buying a policy, check whether your student's college offers renters insurance as part of housing fees or through a partnership with an insurer. Some colleges include it automatically; others offer it at a discount.
What happens if your student gets sick or injured
If your student is on your health insurance plan and gets sick or injured at college, they should go to an urgent care center or emergency room near campus, not travel home for care. Before they leave for school, make sure they know how to find in-network providers in their college town. Many insurers have a mobile app or website where you can search for doctors and hospitals by location.
If your student needs ongoing care — therapy, medication refills, management of a chronic condition — they should find a provider near campus rather than trying to see their home doctor. Ask your insurer for a referral or use the insurer's provider search tool. Some colleges also have student health centers that offer basic care at no additional cost to enrolled students.
If your student is injured in a car accident and you have auto insurance, the medical payments coverage (also called med pay) on your auto policy will pay for emergency medical care up to a certain limit, regardless of who was at fault. This is separate from your health insurance and can help cover costs quickly.
Frequently Asked Questions
Can my college student stay on my health insurance if they live out of state?
Yes. Federal law allows you to keep your student on your health insurance plan until age 26 regardless of where they live or go to school. However, check whether your plan covers care in your student's college state — some plans have limited out-of-state coverage or require you to use in-network providers.
What if my student gets a speeding ticket while driving my car?
The ticket goes on your student's driving record, not yours. However, it may affect your insurance rate because your student is listed as a driver on your policy. If your student gets multiple tickets or causes an accident, your insurer may drop them from your policy or raise your rate significantly. This is another reason to tell your insurer about your student's driving habits.
Do I need to add my college student to my auto insurance if they only drive the car once or twice a year?
No. If your student drives your car only occasionally, they are covered under your existing policy. However, you should still tell your insurer that your student is away at school and will drive the car infrequently. If your student drives the car more than a few times a month, ask your insurer whether adding them to your policy or buying them a separate policy is cheaper.
What if my student does not have a car but sometimes borrows a friend's car?
If your student borrows a friend's car occasionally, they are covered under the friend's insurance policy, not yours. However, if your student borrows the same car regularly, the friend's insurer may require your student to be added to that policy. Your student should ask the car owner to confirm with their insurer before borrowing the car regularly.
Can my college student get their own health insurance instead of staying on my plan?
Yes, but it is usually more expensive. A student can buy an individual plan through the health insurance marketplace or through a college plan. Before your student buys their own plan, compare the cost and coverage to staying on your plan. In most cases, staying on a parent's plan until age 26 is the cheapest option.