Personal Finance

Important insurance for students

Protecting your valuables at university is essential when you’re on a tight budget. Here’s a quick guide into the important insurance students need at university or college.

The right insurance can be very important for students. When at university, you’re on a tight budget, which means it’s not easy to replace items - especially if we’re talking about expensive laptops or smartphones. But taking out insurance can get you back on your feet as soon as possible following theft, loss or damage to items.

Contents

Gadget insurance

Gadget insurance can protect your important items and equipment should the worst happen, like theft or accidental damage.

Why is gadget insurance important

Gadget insurance is important for helping to protect your most important pieces of equipment while at university. Devices such as laptops or tablets are essential for doing your work, and they can be expensive to replace—especially on a student budget.

By taking out gadget insurance, you could protect your devices should they be stolen, damaged, or lost, meaning you could get a replacement paid for by your insurer. However, make sure you check which situations are covered by an individual insurer, as not all policies have the same level of coverage.

Some insurers offer a 24-hour replacement for the device. This could be a good benefit if you rely on your gadget constantly to complete work and can’t do without it.

Contents insurance

Contents insurance is similar to gadget insurance as it will help protect your possessions from damage, loss or even theft. They can cover and fund the replacement of a range of items, from gadgets like laptops and smartphones, to other items such as a bicycle or jewellery.

Am I covered on my parents’ home insurance?

You may be covered on your parents’ home insurance policy even though you might be living away temporarily. This will depend on their individual policy however and any add-ons, as some insurers require students to take out a specialised version of content insurance.

Is content insurance needed for halls of residence?

Some halls of residence can have a basic level of insurance already included, but this may not be the case. You should double check, and think about taking out a student contents insurance policy to make sure your belongings are protected.

Specific student contents insurance, like all insurance policies, has specific terms that determine whether there’s a pay out or not. For example, it’s likely that the policy only covers contents in your private space, such as a bedroom.

But, if your mobile phone or tablet was stolen from a living room or other communal space, it might not be covered. If there’s no forced entry—in other words, if the door or window was left open—this could also mean you would not be covered.

How much does student content insurance cost

The average cost of UK contents insurance starts from around £56, but the average person can spend around £125 on contents insurance. Save The Student says student content insurance will likely cost around £100 per year, which should give you a rough idea.

But the price depends on a few things. Namely, your location, the level of cover, the amount of excess, whether you’re in a private house, shared house or halls of residence, and what you want to be covered for (such as damage, loss or theft) can impact the price you pay.

Car insurance

Car insurance is a big expenditure for students with a car at university. With budgeting being a big issue, choosing the right car insurance is essential. Getting the right deal is especially important if you’re a young driver, as going alone on your own policy can push the price up a lot.

Why is choosing the right car insurance important for students?

The cost of car insurance is likely one of your biggest up-front expenses as a student with a car. Not only is it one of the biggest costs of owning and running a car generally, but being young and potentially moving to a riskier city can drive up the price you pay. In fact, your age, car and location can affect premiums by up to 500% or more.

As a student, money is probably tight. You need to budget well and there’s not much room for waste. Remember that your student loan will need to last until your next installments, so it’s important you use it wisely. By comparing quotes and scouting around for the best deal, you can try to reduce the amount you pay as much as possible.

How much is car insurance in the UK?

The cost of car insurance can vary widely by your age, car, location, and the excess you’re willing to pay. This is because these factors affect the ‘risk’ that you pose to the insurer, and almost always, the younger driver means more risk, hence you pay more for insurance.

Although the average cost of UK car insurance is £460 a year, the average cost for teenage drivers can be in the range of £1,000 to £2,000 a year as they’re the most risky age group. The average car insurance cost for drivers in their 20s were on average £850, dropping to £720 for drivers aged 25 years old.

Your location can also make a big impact. For example, Newcastle has the cheapest average insurance (across all ages) at £379, but jumps up for Manchester at an average of £913, which shows just how much of an impact your location can have.

Automatic policy renewals from providers are very often more expensive, so make sure you shop around to find the best quote.

How to choose car insurance

When choosing car insurance for students, it’s always best to use a price comparison site. This will give you the cheapest possible prices from a range of different insurers, leaving you in the best position. The time you’re likely to get the cheapest rates when buying car insurance is around 3 weeks ahead of when you need a new policy to start. The closer you are to your new start date, the more expensive it’s likely to be.

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