AAA Texas Recommends Financial Checklist for Parents of College Bound Students.

HOUSTON -- Parents of college-bound students have already had a dose of financial reality while preparing for their child's imminent late-summer departure, including financial aid, scholarship applications and, of course, tuition. While these are important, parents also need to consider insurance and banking issues that can protect them and their family from harm and potentially return money to their pockets, according to AAA Texas.

"Sending a student to college, especially for the first time, can be a life-altering experience for students and parents alike," said Rose Rougeau, spokesperson for AAA Texas. "Parents should remember that this change has the potential to affect auto, home and health insurance coverage."

AAA Texas offers the following recommendations for parents of college students:

Auto Insurance -- Depending upon your policy, you might be able to lower your premium if your college-bound student takes a car to school, because some insurers will reduce rates for drivers attending school at least 100 miles away from home. Students who will drive at school may continue to be eligible for a "good student" discount depending on the grade-point average they maintain. Also, inform your insurer if your child goes to college without one of the family cars. This means you will have one less driver for most of the year, which could lower rates. It's important to note, however, that if parents remove their student as an active driver, he or she won't be covered at school when driving a friend's car.

Homeowners Insurance -- Electronic "necessities" such as entertainment systems, laptop and desktop computers usually are covered against theft by homeowner's insurance policies. Check to see if there are any restrictions in your policy. If there is no coverage or inadequate coverage through your homeowners insurance, you may want to purchase renters insurance or check with the university about coverage provided through it.

"Parents should reinforce with students that they can't leave their belongings and laptops lying around areas such as the library," Rougeau said. "When you leave the area, for only a few moments, thieves have enough time to walk off with computers and backpacks. Laptops can now be equipped with locks to prevent theft. And don't forget that open dorm rooms, unlocked vehicles and unsecured bicycles are also easy targets for thieves."

Health Insurance -- Check your policy to determine how long your children are covered. Usually it is up to ages 20-24. Check whether the school offers low-cost health insurance that will cover the student for the entire year. Determine which services are covered, such as emergency room visits and prescriptions. Also, check on the availability of dental and vision care.

Banking -- Banks and ATMs abound near schools. If you are giving your student an ATM card under your account, set the ground rules in advance as to how it should be used, i.e., for emergency cash only, or with a weekly withdrawal limit. With Internet banking services offered through most banks, you can also set up a separate checking account, and transfer money from your account to the student's account electronically.

Credit Cards -- If you decide to provide your student with a credit card, discuss in advance their responsibilities and how the card is to be used, i.e., for emergency purchases such as car repairs. Explain how interest, minimum payments and late fees work together to increase the amount owed if one is not careful with using a credit card. College can also be an opportunity for students to start developing their own credit. Many banks offer a credit card with a lower credit limit for students.

Roadside Assistance -- For students bringing a vehicle to campus, AAA membership can be a valuable safeguard -- and provide significant savings. Parents can add their students to their membership as an associate member for only $24 a year. (Dependent associates must be under age 21 and full-time students). In addition to roadside assistance, students can use their membership card to save money on everyday expenses like Internet access, car maintenance, haircuts, eyeglasses, online book purchases, clothing and shoes at participating Show Your Card & Save(R) retailers. The AAA card can be used for roadside assistance services throughout the U.S. and Canada, and selected merchant savings are available nationwide.

AAA Texas, an affiliate of AAA National, has been serving Texans since 1902. Today, more than a million AAA Texas members benefit from the organization's roadside assistance service, travel agency, financial products, insurance products and services, automotive pricing, buying and financing, trip planning services and traffic safety programs. Information about these products and services is available on AAA Texas' Web site at www.aaa-texas.com.