Do students living away from home need their own insurance? 

A 2023 study said only 47% of Canadian students live at their parent’s home while attending school, meaning over half will go away. When living away from home for the first time, unexpected events can occur. That’s why having insurance is essential for your child while they’re away at school. But when they move out, you might wonder: do they need their own insurance?  

If any of the following is true, then it makes the most sense to insure your child under your existing insurance policy: 

This means your child may not need their own insurance policy—tenant or otherwise—to be covered. Just like they were covered when they were living at home, they’d be covered at school, too. This is true regardless of if they’re in Ontario or attending school in another province, or even in another country.  

Some post-secondary institutions will require students to carry insurance, like if your child is living in a dorm on campus or a university residence. Getting insurance for your child is as easy as contacting your broker. In some cases, you may want to increase your contents coverage limits through a rider to ensure all belongings will be adequately covered. Usually, contents coverage will contain a sublimit for belongings away from home—between $5,000 to $25,000, depending on the policy. 

For children living away from home whose belongings are covered under their parents’ home or tenant insurance policy, it’s important to make an inventory of all their belongings. Since the onus of proof usually falls on the policyholder, having a detailed list of their property as well as physical evidence (like receipts, warranties, etc.) can expedite the claims process and ensure a swift and fair settlement. Be sure to include all electronics, clothes, appliances, textbooks, and furniture in this list, as the overall value of these can add up very quickly.  

It’s important to remember that any claims your child files under your home or tenant policy will affect your insurance. If you prefer to avoid this, you may want to consider a separate policy.

Some car insurance providers offer what’s called a “student away from home discount,” which can reduce the cost of adding a student to your policy by up to 50%. That said, the discount can vary depending on how far away your child will attend post-secondary. Be sure to ask your insurance broker if your situation qualifies you for any discounts.  

On the topic of auto insurance discounts for students, some providers also offer reduced premiums for full-time students with a certain grade average. Some auto insurance providers have found a correlation between academically successful individuals and good driving behaviour, and may reward good students with cheaper auto insurance. 

For students moving away permanently or who only go to school part-time, are financially independent, or are living off-campus, it may make more sense to have their own insurance. If your child will be living with roommates, each roommate will likely benefit from having their own policy as they may not be covered by one another’s insurance. 

In this case, students moving out permanently may want to buy their own tenant insurance. Tenant insurance includes liability coverage, additional living expenses, and content coverage. Your child’s landlord may also require them to have tenant insurance before they can sign a lease. 

When you throw a car into the mix, whether it belongs to your child or one of your own, insurance can get more complicated. What if they’re going to the US for college? Will the car be covered out-of-province? Does it make more sense for your child to have their own auto insurance policy? 

Unless your child is entirely financially independent and planning to move out permanently, insuring them under your own auto policy may still make the most sense budget-wise. If they are out-of-province or out-of-the-country, they’ll need to return home once every six months to remain covered under an Ontario auto insurance policy. Having your child’s vehicle insured under your policy can qualify you for discounted rates, allow for more simplified paperwork, and offer flexibility in who can drive what car.  

In summary: if your child is bringing a vehicle with them to school and they’re not financially independent or planning to move out permanently, you can still insure their vehicle under your existing auto policy.  

Your child should, ideally, have their own auto policy if they’re permanently moving out. Also, if your child is not bringing the car but will drive your vehicle when they’re visiting or back for the summer, they’ll still be covered under your auto policy when they return. 

Our team of brokers are happy and prepared to discuss the insurance needs for you and your child during this transitional period. If you are concerned about coverage, want to discuss adding a rider, or are confused about what kind of protection your child may need while away at school, give us a call.