If your children have temporarily left the nest for postsecondary school, there's more to getting them settled in than just visiting the big-box furniture store. Not only do you have to set up a new desk, you may have to set up various insurance policies too.
For instance, that particle-board desk you invested in may be covered by your home insurance policy against theft, although I don't know who would steal a student's desk. My guess is you may not even make a claim. But the modern student is loaded with electronics of all descriptions: desktop computers, net books, iPods, iPads, portable TVs, PDAs, stereos, MP3 players, digital cameras, even scientific calculators.
So, what if a new $1,500 laptop gets stolen? You don't want to find out after the fact that your policy didn't extend coverage to students studying away from home. Take a look at your policy, or call your agent or insurance provider. With the amount of technology students are armed with these days, a small premium may be worthwhile.
For students who have a car, so long as you remain a permanent resident of Canada, your existing auto insurance policy is normally fine. But you should call and let the insurer know if you or a child are going away to school. Depending on which company your coverage is with, it may charge an additional premium depending on where you go, and it will also inform you if there are any additional considerations (see sidebar). If you fail to provide your insurer with this information, you could face a denial of claim if something were to happen.
For student health and dental plans, the premiums may be included within student union fees. As an example, the University of Toronto's health and dental plans collectively cost $223.40 a year and the maximum possible annual benefit you could receive is $5,000 for prescription drugs and $10,000 for all other health benefits. The policy can only pay out for expenses not covered by provincial health plans that the student may be eligible for. Anyone can opt out of the dental plan, but must provide proof of alternative coverage to opt out of the health plan (provincial health plans do not count).
Clearly, if the student is covered by an alternative health plan, you could end up saving almost $1,000 over a four-year program by opting out of both plans. Make sure not to delay. In the case of the University of Toronto, you only have until Oct. 7 to get refunds.
Insurance plans and coverage are often taken for granted when getting back to school. Some of them are worth having, and some of them are worth skipping.
Car Coverage
Taking a car to a new province? Make sure your coverage is still valid by checking the rules of the province you are temporarily moving to. For example:
If you are going to Ontario and spending more than six consecutive months there during the same calendar year, you may need to get a new policy, register your vehicle with the Ministry of Transportation and exchange your driver's licence. If you are only going for a regular academic year (September to April), you're off the hook as that's two separate calendar years.
For Newfoundland, you need a new driver's licence and to update your insurance within 30 days.
Unless you get a permit from the Insurance Council of British Columbia, you'll need to get an insurance plan.
Preet Banerjee, B.Sc, FMA, DMS, FCSI is a W Network Money Expert, and blogs at wheredoesallmymoneygo.com. You can also follow him on twitter at @PreetBanerjee
Preet Banerjee