Off to uni? See how the leading student insurers match up.
It's the time of year when driving down the motorway becomes even more hazardous. Yes, it's back to university time - and that means dodging estate cars wobbling down the outside lane, stuffed to the brim with suitcases, musical instruments, and pot plants, as students return to halls and shared flats around the land.
Students nowadays have a lot of stuff. A recent M&S survey found that the average student has around £1,650 worth of possessions in their room, including clothes, laptops and iPods.
Yet at the same time, students are among the groups most likely to be burgled. And these can be devastating for students trying to live off loans. The NUS estimates it costs an average £900 for students to replace goods and repair damage after a break-in.
So, if you are heading to the land of lectures and libraries this month, it makes sense to insure your stuff. The good news is that you may be covered already, without knowing it, as we explain below.
Even better, now that more than 400,000 students go to university each year, there are a wide range of specialist insurers out there. If you can navigate the complicated world of student insurance with our help, you should be able to tailor-make a policy to fit you - plus your cello, turntables and surfboard - perfectly.
Are you covered already?
The first thing to realise is that some universities negotiate group insurance for students living in halls. So you're lucky enough to have a room in halls, check if you're covered before you shell out.
For this article, I researched how much it'd cost to insure a second-year full-time student at Bristol University. Initially I looked at insurance in halls. Endsleigh (the market leader) said Bristol's halls are not covered by their group policy. However, Endsleigh does cover 80% of halls, so it might be worth check with your university before you take out insurance yourself.
Secondly, if your parents have home insurance, then you may well already be covered - three out of four home policies cover student possessions too. But beware of insurers with skimpier `coverage' than Britney Spears.
Many home policies won't cover theft unless a burglar has forced entry, but can you really guarantee that you'll lock your room every time you go to make a cuppa? Endsleigh says that one in three of its payouts are for `open door' thefts.
Also, check whether your parents' home insurance is generous enough for your possessions. A Sainsbury's survey found that a third of home insurers capped student claims at £3,750, and eleven insurers capped them at £1,000.
Both university and home policies are unlikely to cover pricier items, or accidental damage. If you want more than the absolute minimum, try the specialists.
Beyond the basics
Student insurers offer a range of extras, which can make it confusing to compare policies. But it's worth doing, because prices vary a lot.
I compared quotes from three leading insurers for a second-year student at Bristol, in private accommodation in the studenty Redland area (postcode BS6). Here's how they matched up for basic coverage:
| Endsleigh | Saxon | Karma |
|---|---|---|---|
Cost (for one year) | £79 | £63 | £37.56 |
Basic coverage | £5000 | £10000 | £5000 |
Items covered | |||
Standard excess (amount paid by you on a claim) | £25 | £25 | £25 |
Credit/debit cards | £500 | £500 | No |
Cash | £50 | £50 | No |
Freezer food | No | £25 | No |
Legal - third-party | £1000000 | £1000000 | No |
Legal - tenancy-related costs | £5000 | £5000 | No |
Replacing keys and locks | No | £150 | No |
CDs and DVDs | £600 | £500 | No |
Desktop computer in room | £2000 | £1250 | Yes - but see single item limit |
Other single item limit | £2000 (but limits e.g. £600 for instruments, £250 for items of clothing) | £500 | £250 |
Types of coverage | |||
Accidental damage? | No | Yes | Yes |
During holidays? (in locked room) | No | Yes | No |
While in transit? | Yes | Yes | No |
Unforced entry? | Yes | Yes | No |
Not covered (optional extras) | Mobiles, laptops, bicycles, contact lenses | Laptops, bicycles, sports equipment, musical instruments, contact lenses | Mobiles, laptops, bicycles, MP3 players, CDs/DVDs, glasses and contact lenses |
(Incidentally, what's with the frozen food coverage? When I was a student, the only thing in our freezer was vodka. Are there really students out there with half of M&S in the deep freeze?)
As these figures show, insurers do differ quite significantly. For example, Endsleigh are more expensive, and don't include accidental damage or holiday cover as standard. Karma are cheap, but don't automatically cover unforced entry, holidays or your possessions while in transit (though you can pay extra for these).
All these insurers will try to sell you extras, including some you might assume were already covered, such as:
- coverage for laptops, mobiles, bicycles, and (in some cases) sports and music equipment
- `out of room' cover, for items you carry around
- coverage for fees and rent if you drop out of your course
- coverage against mugging
- legal costs.
Of course, quotes will vary widely, depending on your circumstances - but these figures show that it's worth getting a few different ones. If you've already paid for insurance and it doesn't suit, you can cancel within 14 days with no penalty.
If you're a dedicated photographer, sports player or DJ, you may well want to arrange extra cover. Studentguard has a range of specialist insurance products.
Better safe than sorry
Of course, insurance is one of those paradoxical items that you shell out for in the hope you'll never need. With a bit of care, you can cut your chances of getting burgled considerably.
Check out the NUS's guide to protecting your stuff. (Top tip: buy an ultraviolet pen and write your name and number invisibly on pricey possessions. That way the police know how to return things if they're recovered after a robbery.)
Finally, if you already have student insurance, and want to pass on three cheers to a generous insurer - or three jeers to a tight-fisted one - then tell us in the comments below, or on the Fool's dedicated Student Finances board.
More in our Student Special series: Managing Your Finances At University | Students: Reduce Your Bills! | My Five Top Student Bank Accounts | The Debt All Students Should Avoid | | Money Saving Tips For Students | Money Talk Podcast: Everything Students Need To Know About Money