Reality bites: timely tips for parents of campus-bound students,
from RBC Insurance
TORONTO, August 14, 2007 — With summer fading
into the sunset and school on the horizon, many Canadians
will be busy getting their children ready for their first
time away at university or college. But before they pack the
laptops and other expensive electronic gadgets, parents would
be wise to review their insurance policies to ensure their
students' belongings are adequately covered for loss or damage
while living away from home.
Judging by the results of a recent RBC Insurance/Ipsos Reid
survey, knowing exactly what their home and auto insurance
policies cover may not be top of mind for most parents. According
to the survey, while three-quarters (75 per cent) of Canadians
with home and content insurance are parents, one in three
(33 per cent) don't know if they have the right amount or
types of insurance.
"Parents and students may not agree on what qualifies
as must-have items but by the time parents are finished getting
their college-aged children ready for their first year away
from home, they've spent a significant amount of money,"
said Francois Boulanger, president & CEO of RBC General
Insurance Company. "In the process, many of them are
so busy getting everything together that they overlook insurance.
It's an oversight that could result in some costly surprises
during the school year."
Those who aren't sure what their policies cover should review
their coverage now, before the school year begins. Although
many household insurance policies automatically extend coverage
for a student's possessions while living in a campus dorm
or an off-campus apartment, it may not be the best coverage
option for all. This is because a parent's policy will usually
limit the amount of coverage for the student and any claims
incurred can affect the overall claims history and future
premiums of the main policy. Arranging tenants' coverage in
the student's own name may be a better option, as the student
will also be able to select the coverage necessary for items
that may exceed the value of limits on their parent's policy.
"Tenant's insurance is more affordable than one might
think," added Boulanger. "For example, a tenant's
insurance policy for a student living in an apartment in Kingston
would cost approximately $250 a year."
Auto policies should also be reviewed when a student heads
off to college or university. The distance between home and
school and how much the student plans to drive while away
could affect the rate being paid.
"Many parents wonder if they should take a student off
their car insurance when their student goes away to school,"
noted Boulanger. "Generally, it is best to keep the student
as a listed driver on the policy so they have continuous insurance
coverage. This will ensure that your policy provides coverage
if your child is injured in an accident involving any motorized
vehicle, whether it be as a pedestrian, cyclist or while riding
in someone else's vehicle."
While it would be best to continue to include occasional
student drivers on their parent's insurance policies, Boulanger
emphasized that students who take their own cars away with
them to school need their own policies.
For these and other tips on how to maximize coverage and
minimize the costs of having a child away at school, RBC offers
a wide range of advice online at www.rbcinsurance.com
or by phone at 1-800-Royal-26.
These are the findings of an RBC Insurance/Ipsos Reid survey
conducted between May 1 and May 20, 2007. The poll was based
on a randomly selected sample of 2,000 adult Canadians who
were interviewed by telephone. With a sample of this size,
the results are considered accurate to within ±2.19
percentage points, 19 times out of 20, of what they would
have been had the entire adult Canadian population been polled.
The margin of error will be larger within regions and for
other sub-groupings of the survey population. The data was
statistically weighted to ensure the sample's regional and
age/sex composition reflects that of the actual Canadian population
according to the 2001 Census data.
About RBC Insurance
RBC Insurance, through its operating entities, including RBC
General Insurance Company, provides a wide range of creditor,
life, health, travel, home, auto and reinsurance products
to more than five million North American customers. RBC Insurance's
home and auto insurance operation provides Canadians with
protection for their houses, condominiums, rental and seasonal
properties, cars, minivans, motorcycles, recreational vehicles,
snowmobiles and boats. Our home and auto insurance is offered
to individual customers through direct sales channels and
through employee and affinity plans. For more information,
please visit www.rbcinsurance.com
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Media Contacts:
Judi Levita, (416) 974-8810
Kerry Gaetano, (905) 816-5583
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