Gearing Your Insurance for your Child’s Education

Are your child’s ‘student assets’ covered? 

The start of the academic year usually brings an avalanche of added costs for many parents sending their children to school or varsity. Besides tuition fees, textbooks, stationery, electronic devices such as smartphones, tablets, laptops, printers, uniforms, sports gear and musical instruments constitute a very hefty financial investment.  

“The face of education has undergone a dramatic change amidst a fast-paced and everchanging educational landscape. More than ever, educational institutions are embracing tech subjects that teach robotics, design, programming and more. It also means that your child has more valuable portable tech assets on their person than ever before - the combined value of which can easily be underestimated. As just one example, laptops for the likes of graphic design, programming and engineering subjects are usually all the latest and best specs, and these come with a hefty price tag way beyond your ‘run-of-the-mill machine. The need for a holistic insurance plan that mitigates the risk of theft, accidental damage or loss of your child’s ‘student assets’ is crucial,” says Mandy Barrett of insurance brokers and risk advisors, Aon South Africa.   

“As much as you drum it into your child to take responsibility for their possessions, the reality is that accidents and circumstances beyond their control will inevitably happen. It’s advisable to consult with your insurance broker to check that such items can be covered under your insurance policy, and especially to review and understand the ‘All Risks’ section of your policy,” Mandy explains.  

The ‘All Risks’ section of your policy will also need careful attention. In some policies, you will need to specify the items to be covered under All Risks, and these are typically items that would be removed from your home such as laptops, smartphones and sports equipment. Remember that household contents cover means just that – the contents of your home that stay within your home. If an item goes along with your child to school, university or a dormitory, it ceases to be covered unless specified under ‘All Risks’.

Insuring a student vehicle

Statistics show that younger, inexperienced drivers have a much higher accident rate and hence more claims, than older, more experienced drivers.  

Further food for thought when considering a vehicle for a young driver is that of safety and power considerations. “In terms of sound vehicle purchasing advice, it’s particularly important that parents consider a student vehicle with modest power, excellent safety features and that’s roadworthy. Besides the insurance implications of putting your child behind the wheel of a high-powered expensive vehicle, there are very real safety concerns for the driver and other road users by putting an inexperienced driver behind the wheel of a speed machine,” says Mandy.

“It’s best to have comprehensive cover when insuring a student vehicle, with perhaps personal liability top-up cover, given the risk of major claims in the event of an accident or incident where the young driver is proven to be negligent.  Always specify the regular driver of the vehicle and the terms of its use to avoid any problems at claim’s stage.  New drivers will also typically draw a significantly higher premium due to the higher risk they pose for accidents, so discuss how to manage and mitigate this with your broker.  Insurance that makes use of vehicle tracking devices to monitor driver behaviour may be a good option to drive responsible driving behaviour and thus reduce your insurance premiums and is also an essential safety benefit in a country where crime is a very real concern,” Mandy urges.

“When it comes to protecting your child, their portable student assets and vehicle, a professional insurance broker has the experience and specialist knowledge to help you make better decisions around the risks that your child could face, whether it be at school or university, at home or abroad,” Mandy concludes.