- in Finance
Most students are living independently away from home for the first time, with complete responsibility over their finances and how they manage them. As such, it may be wise to think about how you cover those unexpected costs that can arise.
Many students aren’t able to cover the costs of accidents and unfortunate incidents out of pocket and may find themselves unable to replace the assets that are most important to their education and life away from home.
Here, we’re going to take a closer look at the types of insurance that could be essential to your student life. From your car to the contents of your home, to the travel that you might need to arrange to attend classes to the laptop that’s going to be your number one tool of choice, there’s a lot worth protecting.
Here, we’re going to look at what you need to know about all kinds of insurance that every student should consider.
Student Car Insurance
Even basic coverage for your car can be difficult to manage on top of the costs of being a student. In 2017, the average insurance premium along was over £1,200. In part, this is thanks to the fact that students are considered a higher risk customer by insurance providers, due to the fact that they are more likely to be in an accident. Many student areas around the country also have higher risks of theft and vandalism, which can also increase those premiums.
However, if you drive a car, you cannot live without car insurance. It’s a legal necessity. However, there may be ways to reduce the cost of your coverage:
- Invest in security: Added security features, such as alarms, steering wheel locks, and other insurance provider approved accessories reduce your risk of theft. This reduced risk can mean reduced premiums from your insurance provider.
- Add named drivers to your policy: Having more experienced drivers as named drivers on the policy can also reduce your premiums. This is simply because the insurance provider sees that lower risk drivers are likely to use the car more often, meaning the overall risk attached to the insurance decreases.
- Check out black box policies: Black box and telemetric policies use modern technology to track driving habits. If you prove your own safe driving habits, you can reduce your premiums significantly.
- Consider temporary insurance: If you don’t need your car to get around at university too much, then you might want to consider temporary car insurance, instead. This insurance covers shorter periods of time, such as driving back home for the occasional visit, reducing the cost significantly.
Of course, as will apply to all types of insurance here, it’s also important to compare policies from different providers. There are a range of insurance market comparison sites that can help you see a range of deals. You also need to consider which policies apply to you. Third party policies, for instance, have become a lot more expensive than comprehensive policies as of late.
Student Contents Insurance
This type of insurance covers the possessions in your residence, such as your clothes, furniture and phone. Areas where students tend to live, such as in halls or shared houses, tend to be targeted more often by criminals, due to the fact that they are likely to have valuable possessions.
Theft is one of the greatest reasons to consider protecting your valuables with contents insurance, but it also protects against things like fire and accidents. Annual contents insurance costs don’t tend to be too much higher than £60. However, this is because they don’t cover everything. For instance, your laptop may be considered too valuable for contents insurance and worth covering in a separate policy. Besides laptop insurance, here are other types of content insurance worth considering:
- Gadget insurance: This covers gadgets, such as phones and tablets, protecting them against theft, accidental damage, liquid damage, and loss. While many insurance providers provide it as a part of contents insurance, not all do, so make sure you do your research.
- Tenants’ liability insurance: Your contents insurance will not cover the fixtures and fittings of your landlord’s property. As such, if you want to make sure you’re not paying out of pocket for any accidents that happens to their property, you may need to consider this as well.
Besides comparing the different student contents insurance out there, the best way to reduce your premiums is to secure your contents. Choosing properties with working burglar and fire alarms and ensuring that it has secure doors and windows that are always kept locked can help you manage your contents insurance costs. There is also the ability to increase your compulsory excess to reduce your premiums, but this means you will have to pay more if you do, in fact, have to make a claim.
Student Travel Insurance
Not every student is going to need travel insurance. This mostly applies to those who are studying abroad and can cover a wide range of needs, such as medical treatment for accidents and illnesses overseas, stolen, lost or damaged baggage, and so on. There are many different types of travel insurance, so you must pick one that fits the nature of your trip.
Single trip coverage, for instance, will cover you for one trip. Annual cover will cover you if you have multiple trips you’re planning. There are also more specialised types of cover, like backpacker trip coverage, sports travel insurance, and extreme sports travel insurance. It’s important to consider the nature of your trip to make sure you get the kind of coverage you need. For instance, a regular single trip coverage may not cover you if you end up getting in a snowboarding accident.
However, here are some of the aspects of the trip that most student travel insurance deals will cover:
- Travel cancellation: This will cover the cost of a trip, including things like hotel and flight costs, should you need to cancel the trip or end it early due to emergencies and other significant events.
- Emergency medical treatments: These policies cover not just any of the costs of medical treatments in the event of injuries, accidents, and illnesses. They can also cover the costs of having someone fly out to support you while receiving treatment, as well as the cost of getting back home after treatment is finished.
- Baggage and possession issues: This includes cases of loss, theft, and damage. What possessions are covered by the policy can change from provider to provider, however, so It’s always worth looking more closely into.
- Flight delay and cancellation: If a flight cancellation or delay causes you to miss out on something that you have paid for in advance, this coverage can help you recoup the costs.
Student Laptop Insurance
Amongst the most important possessions in every student’s loadout is the laptop. It’s essential for doing your work, studying, and managing your student life. However, laptops are often too valuable to be included as part of your student contents insurance without increasing your premiums significantly. As such, they may need their own coverage. Laptops can be covered as part of student gadget insurance, but there are more specific deals solely for laptops.
Before you look at student laptop insurance, it’s important to check whether or not your laptop is covered by any existing policies. It’s not likely, but it might be covered under your contents policy. Other ways to make the costs of student laptop insurance more manageable are as follows:
- Decide on different levels of cover: Many policies allow you to choose whether to add breakdown cover (if it stops working), theft and loss cover, and accidental damage cover. Consider which risks are more likely and think about whether you could safely choose a policy that lacks any of these kinds of cover.
- Protecting your laptop: Taking security measures such as registering and tracking your device (so it’s more easily recovered by police if stolen) can help reduce the premiums of laptop insurance.
- Consider paying more in excess: Some providers will allow you to decide how much excess you will pay in the event that it is stolen. If you’re willing to pay more in excess fees, you can reduce your premiums.
As with all insurance deals, make sure that you compare providers across the market to get the best deal, too.
What student insurance do you need?
It’s important that you accurately assess your risk or, rather, what costs you can cover yourself and what costs you may need some help with. If you don’t drive a car or don’t have to travel to and from your place to study, then you’re not likely to need car or travel insurance. Similarly, if you don’t have contents that are worth enough to necessitate insurance, then you might be able to skip that coverage, too.
However, if you can identify those assets you can’t live without and can’t afford to cover, yourself, then hopefully the tips above help you understand what insurance is out there and how to find the best deals.