College graduation is a time to celebrate. All the hard scholastic work has paid off and it’s time for new grads to embark on exciting careers. But if you’re the parent of a recent or soon-to-be college graduate, you may want to think beyond that cap and gownand ask yourself a few questions about your insurance portfolio…

• Is your recent grad still covered under your insurance?
• Should you keep your recent grad on your policy, or should they be assuming some of that responsibility themselves?
• If they’ll be flying solo, what sorts of coverage will they need?

Attempting to tackle all these questions at once can seem daunting, especially if you’re still planning for graduation, so let’s get down to a few specifics.

When Should You Keep Your Recent Grad on Your Policy?

Auto
The answer to this question depends to a large degree on the lifestyle your recent grad is planning to have. For example, if they’re going to be living away from home and driving a vehicle currently insured under your auto policy, you may want to keep it that way if the car will remain registered to you or if they’ll planning to be driving another vehicle, such as a friend’s car. Keeping them on your auto insurance may keep the premium lower and will help them build a solid coverage history. Also, if your son or daughter remains on your auto insurance policy, they’ll be covered if they are injured while riding as a passenger in someone else’s car. However, if they regularly drive your car, as the owner, the parents can be held responsible if an accident occurs no matter who is driving the car. This means they can be named in a lawsuit and their assets can be at risk.

Health
If you’re recent grad is still receiving health insurance coverage under your current policy, you may want to consider leaving that arrangement in place until they find steady work. Going uninsured can be risky, even for young and healthy individuals. A sports injury or auto accident can easily add up to an expensive ordeal if they are uninsured. A full-time employer may offer some form of health insurance package but it may not be effective for 30 to 90 days after their employment begins. To ensure continuity of coverage, it’s likely best to keep them on your policy until that timeyou have confirmation of new coverage.

Home/Apartment
If your grad is moving out of campus housing they’ll likely be renting for awhile. If they don’t have rentersinsurance, they should obtain it. If they are establishing residency elsewhere, they may not have coverage under your home policy any longer for their contents and personal liability. That way they’ll be protected in case of a catastrophic property loss such as a fire,, or theft and from personal lawsuits for things they say and do.

When Should You Let Your Grad Insure Themselves?

Auto
College graduation marks an important milestone, when young people begin to assume truly adult responsibilities. If your recent grad is planning to live in an urban environment and doesn’t plan to own or drive a car, it may be easier (and cheaper!) to remove them from your policy. When they do intend to drive, or purchase a car of their own, they’ll need their own insurance.

Health
Health insurance may not be the first thing on a recent grad’s mind, but with medical costs at an all-time high, going uninsured can be risky. If your college grad is no longer on your policy but hasn’t secured insurance through work, they can pursue other options—such as purchasing a short-term policy or seeking ACA-compliant minimum health coverage.

Home/Apartment
Renters insurance offers some important protections, regardless of who pays the premiums. Today’s recent grads tend to own more tech than real estate, but a fire or burglary can quickly destroy everything they have. If your recent grad isn’t covered under your homeowner’s policy, you may want to encourage them to purchase renters insurance for themselves. The cost is extremely reasonable (usually under $15 per month) and can protect thousands of dollars in property.

At MAGIS, we understand that life is always in motion. You need insurance options that cover you and your loved ones through every stage of life. That’s why we work carefully to ensure that each ofour clients has the peace of mind they deserve at a cost they can manage. If you are the parent of a recent or soon-to-be college grad, contact one of our experienced insurance professionals today. They’ll review your current insurance position, analyze your potential risk exposure, and craft policy options that benefit every member of your family—young and old.