Relying on your parents

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Now that the end of the calendar year is approaching, all health insurance providers are announcing their monthly premiums for the coming year. For some, this is a good opportunity to reconsider their insurance policy.

Health insurance

But for many students, that’s not the case. From a sample of 100 students, two-thirds of those surveyed said that they never change their health insurance provider; however, it should be noted that more than half are still insured by their parents. Among students who are responsible for their own health insurance, 46 per cent occasionally switch providers.
That is actually better than the nation average, says Maarten Hoekstra, marketing manager at the comparison website Independer. ‘Seventy per cent of people have not switched their health insurance provider since the current system was implemented in 2006. They often have overly broad coverage and thus pay much more for their premium than is necessary. The people who switch regularly benefit from this. Those who stay with an insurance company pay for those who switch in the end, and those who are switching are often young, highly educated people.’

Health insurance policies come in all sorts and price brackets, but a basic insurance package is mandatory for everyone. The government decides each year what to include in the basic package. For the coming year, nothing will be removed from the basic package, and what few additions there are will not be relevant for most students. Nevertheless, it’s worth the trouble to pay attention. ‘Students often don’t need more than a basic insurance package, but even with only a basic package, the difference between the most expensive and inexpensive insurance packages from different providers is more than 300 euros per year’, says Hoekstra.

Household contents insurance

While most people have health insurance, household contents, liability and travel insurance are less popular.

Consequently, 57 per cent of the students surveyed do not have household contents insurance. That’s a bad idea, according to student police agent Edwin Valkema. ‘Household contents insurance costs next to nothing, but if you don’t have it and something happens, then you’re left empty handed.’ Household contents insurance covers damage if your house burns down, for example, but also if someone breaks in and steals your laptop or tv – if the thief leaves a trace behind, that is. According to the Customer Association (Consumentenbond), it is stated in many policy documents that if no trace has been left behind, the insured person will not be compensated.

• Students’ insurance choices according to Independer

And that is the crux of the problem, says Valkema. ‘The doors of student houses are often opened with a credit card, so there is no sign of damage. You have to prevent this from happening; otherwise, you don’t get anything back, even though you are insured.’ This can be done in two ways: by installing an anti-theft door reinforcer or by always locking the door with the key. A good door policy is often difficult to enforce in big student houses, as Valkema is well aware. ‘Just install a anti-theft door reinforcer, because then at least your door can’t be easily opened.’

Liability insurance

Although it’s not legally compulsory, it is a moral obligation to have liability insurance, says the Consumer Association. However, among surveyed students, only 41 per cent indicated that they had it. But do they need it? Not usually. Students who are unmarried and living away from home are often covered by default under their parents’ liability insurance for private individuals (VPA), says the Consumer Association. In some cases, they are still covered by their parents’ policy even after they get married.

• Cost of insurance policies among students

Liability insurance is often referred to as an unjust legal liability. It therefore gives the impression that it is legally mandatory for everyone, but that is not true. However, it is not an unnecessary luxury. If you break something or cause someone injury, it can save you a lot of money. If you have a car, motorcycle, moped or other motorized vehicle registered in your name, then liability insurance is mandatory.

Travel insurance

Among the surveyed students, 54 percent said that they had travel insurance. According to the Customer Association, travel insurance is vital in emergencies which are not covered by other insurances. ‘Think of repatriation, a longer stay or extra travel costs as a consequence of accidents, illness or death. These kinds of occurrences commonly cost a lot of money and time, and are not covered by any other insurance.’

And one last tip for students who travel a great deal: if you are abroad for more than two weeks a year, ongoing travel insurance is often cheaper than a temporary policy. Be aware that ongoing travel insurance often has a maximum trip duration. If you are going on a world trip, it is better to go for a different insurance.

Source: Independer