Your kid just graduated. Are theystill covered on your insurance?
Graduation season brings a lot of changes at once. New city, new job, new apartment. But in the middle of all the excitement, one thing parents and their new grads tend to overlook is insurance. The truth is, graduation can trigger some big coverage gaps if you are not paying attention. Here is everything you need to know to make sure your child does not fall through the cracks.
Health insurance: the good news
Under the Affordable Care Act, your child can stay on your health insurance plan until they turn 26. This is true regardless of whether they just graduated, got a new job, moved to another state, or are living completely on their own. Graduation alone does not kick them off your plan.
That said, if their new employer offers health coverage, they will need to make a decision: stick with your plan or enroll in their company plan. Encourage them to compare both options carefully. Look at the monthly premium, the deductible, the copay structure, and whether their preferred doctors are in network.
Auto insurance: address changes matter more than you think
This is where a lot of families get caught off guard. If your child is moving to a new city or a different state for work, your auto insurance policy may not cover them the way you expect. Insurance is rated by location, and each state has its own minimum coverage requirements.
If your graduate is driving the same car and just moving across town, you may be able to keep them on your policy. But you need to notify your insurer about the new address. Failing to do so could result in a denied claim.
If they are moving to another state, they will likely need their own policy. This is actually a great opportunity. Young adults with a clean driving record can often find competitive rates, especially if they took a safe driver course or have good grades.
Renters insurance: the coverage most new grads skip
Your homeowners or renters insurance policy covers the belongings inside your home. Once your child moves into their own apartment, their stuff is no longer covered under your policy. Their laptop, furniture, clothes, and other belongings are all exposed.
Renters insurance is one of the most underrated and affordable types of coverage available. Most policies run anywhere from $15 to $30 a month and cover personal property, personal liability, and additional living expenses if they are forced out of their place due to a fire or other covered event.
If your child has a new phone, a laptop for work, and a decent amount of clothing and furniture, they have far more to protect than they probably realize. A single theft or apartment fire could cost thousands.
Life insurance: yes, even for young adults
Most 22-year-olds are not thinking about life insurance. But here is the thing: this is the best time to get it. Premiums are at their lowest when you are young and healthy. If your graduate lands their first real job, locking in a term life policy now can save them a significant amount over the long run.
This is also worth considering if they are taking on student loans with a cosigner, which in many cases is you. A basic term life policy can protect you both.
The bottom line for parents
You have spent years making sure your child was covered. Do not let a life transition create a gap in their protection. Sit down together, review what they are on, what changes with the move or new job, and what they need to set up on their own. It is one of the most practical things you can do to help them start this chapter right.
Ready to make sure your grad is covered?
At CAPPS Insurance, we specialize in helping families navigate moments exactly like this one. From renters insurance for a first apartment to auto coverage in a new state, our team will make sure your graduate starts this chapter fully protected.
Contact CAPPS Insurance today and let us help you figure out the next steps.
