PHOENIX (3TV/CBS 5) – It’s no secret that college costs a lot of money these days. In total, the average is more than $27,000 a year for a public school and more than $55,000 for a private university, leaving some families wondering if there’s a way to protect their money in an emergency. . Consumer Reports explains. It is an investment totaling tens, sometimes hundreds of thousands of dollars. What if something goes wrong?
Consumer Reports says there are two ways to protect some of that investment: tuition insurance and dorm insurance. For example, if your child has a major health condition and has to drop out in the middle of the semester, tuition insurance will reimburse you for the portion of the semester your child did not receive. This is in addition to what your child’s school may reimburse you for. So, after checking the college’s reimbursement policy, CR recommends checking the terms of coverage to see what specific conditions are covered and what is needed. Typically, you will need to send medical records, such as a doctor’s letter, to the insurance company.
When it comes to dorm insurance, coverage is usually affordable, and that’s something you might want to consider with all the expensive things teenagers have these days. Dormitory insurance covers everything your child may take with them to college. If something happens, it’s a way to get reimbursed for loss or damage. While you may have some coverage for your child through a home insurance policy, CR says dorm insurance or even renter’s insurance might be a cheaper option — a few hundred dollars a year — because deductibles are often higher with home insurance.
When it comes to saving money while your kids are in college, CR suggests reducing your car insurance if your student doesn’t have a car there. Also, be sure to take advantage of the tax benefits offered to parents of dependent students.
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