Students urged to update their home and car insurance

30 September 2008 / by Daniela Gieseler
At the beginning of the new term students should remember to inform their home and car insurance providers of any change in circumstances or they might be at risk of having their claim refused, warns independent financial data research company Defaqto.

Mike Powell, Principal consultant for general insurance at Defaqto, said: "If you are intending to take your car to university, you need to ensure that your insurer is informed of where your car will be parked. Failing to do this may mean that your insurer could refuse to deal with any claim made under the policy."

Apart from possible changes to their car insurance, students may also want to check if they are covered by their parents' policy or if they need their own home insurance or, if they already have their own, if their policy needs updating to reflect their change in circumstances, such as moving into shared accommodation or halls of residence.

Needless to say, every student should also make sure that valuable contents such as laptops, MP3 players and mobile phones are covered by adequate student contents insurance.

There are a set of other services which also need to be updated and are easily forgotten due to the excitement of starting out at a new university. Apart from providing new address details and living circumstances to their insurer, Defaqto reminds those students that own a car to inform the DVLA of their new details for their vehicle registration document and driving licence.

It is also important that they inform their bank of the new address, and to make the most of the opportunity to take out a new student bank account, most of which offer beneficial conditions for students on overdrafts. When taking out a student current account it pays to shop around and not go for the first available deal, and students could bag themselves a variety of extra benefits.

The same applies to utilities – students on a small budget should shop around before they choose their gas and electricity provider, if they have the opportunity, as it could save them a lot of money on their annual bill.

© Fair Investment Company Ltd