GradGuard Insurance Review: Pros, Cons, And Alternatives

GradGuard is one of the leading providers of tuition insurance and dorm room renters insurance in the United States.

College is often the start of a young person’s independent financial life. That means college students need to figure out insurance needs specific to their stage of life. 

GradGuard is a company that designs financial products for college students. Its unique tuition insurance reimbursement and college renters insurance policies are designed to help cover the biggest financial risks for most college students.

What Is GradGuard?

Started in 2009, GradGuard, a venture of Next Generation Insurance, is an insurance company that is designed to financially protect college students during their college years. It offers a unique, low-deductible rental insurance policy that covers your stuff no matter where you’re living. 

GradGuard also offers a low-cost tuition insurance policy that covers the cost of tuition up to a certain cost. This is in case you’re unable to complete the semester due to illness, injury, or several other covered problems such as mental health challenges, Covid-19, or a chronic illness flair.

What Does It Offer?

GradGuard works with nearly 500 schools nationwide to provide renters and tuition reimbursement insurance. It doesn’t offer other products.

Tuition Reimbursement Insurance for One Semester

When you start the quarter or semester, you have to pay tuition regardless of your ability to complete your courses. Your school may not reimburse your tuition if you leave school, or it may only grant a partial reimbursement. 

GradGuard protects you financially if you have to leave school for covered reasons like illnesses, certain mental health challenges, and a few other covered reasons. 

The tuition insurance costs about $120 to $220 per $10,000 in tuition covered per semester. You must buy the tuition policy before the semester starts. There is a max coverage of $50,000 per term.

Tuition Reimbursement Does Not Cover Previous Educational Debt

Limited Reimbursement For Mental Health Withdrawals

GradGuard offers complete reimbursement for mental health-related withdrawals at partner schools. It’s important to understand what portion of tuition will be covered if you’re concerned.

Low Deductible Renters Insurance

GradGuard’s renters insurance primarily covers your personal property including: 

• Bicycles
• Gaming systems
• Textbooks
• Computers
• Other college essentials

It has deductibles starting at just $100, and your stuff is covered anywhere in the world. 

The renters insurance even covers theft and vandalism as well as burst pipes and flooding damage. This is more robust coverage compared to most insurance policies.

Renters Liability Insurance

In addition to covering personal property, GradGuard covers personal liability in case you unintentionally cause damage at your place of residence. 

It’s important to understand what’s covered because you may be on the hook for paying for damages if you engage in certain reckless or careless behaviors.

Are There Any Fees?

To be covered by GradGuard, you need to pay premiums for both tuition and renters insurance. Tuition Insurance is paid once, before the start of the semester. 

For $10,000 in tuition coverage, costs range between $120 to $220, depending on where you attend school, among many factors.

Renters insurance costs around $9 to $17 per month for $7,500 worth of coverage. This is a bit more expensive than most renters policies, but the deductible on this plan is just $100. 

On top of that, the policy covers personal property throughout the world, not just in your dorm room.

How Do I Contact GradGuard? 

You can call GradGuard’s customer service at 1-866-985-7598 from 10 a.m. to 7 p.m. Eastern Time, Monday through Friday. 

How Does GradGuard Compare?

GradGuard’s renters insurance is a bit more expensive than standard policies. However, college students may be riskier than other renters, and the policy has a very low deductible. It specifically covers water and fire damage as well as theft and vandalism. 

Other renters insurance policies may have limits in coverage. In general, GradGuard’s tuition coverage is the most comprehensive policy at a competitive price. 

If you’re only concerned about the renters insurance policy, you may want to check out Lemonade, which offers an app-based renters insurance with a $0 deductible and instant claim payment available in some cases. The average cost of Lemonade renters insurance is around $13 a month. 

How Do I Get A Quote From GradGuard?

GradGuard works with nearly 500 schools nationwide. You can request a renters or tuition insurance quote through the website. You only need to provide your school, your name, and an email address to get started. 

For renters insurance, you also need to provide information about where you’ll live and the value of your items. GradGuard provides instant quotes, so you can decide whether to sign up for a policy directly from the site.

Is It Safe And Secure?

GradGuard has been insuring college students since 2009 and has served over 1 million customers. It’s not a huge insurer, but it offers quality products and has historically paid out its claims.

From a security perspective, GradGuard follows best practices, including giving quotes with limited personal information. If you choose to buy from GradGuard, you will need to provide financial information, but the site has appropriate security and encryption. 

You can expect that your information will largely remain safe and secure. Of course, there is always a risk of identity theft whenever your information is stored online.

Is It Worth It?

As a college student, taking control of your finances includes making sure you're properly insured. One essential type of insurance for all renters is renters insurance. The homeowners policy from your parents may offer partial coverage for your personal belongings, but getting your own renters insurance can be a smart decision. 

If you don't have any coverage yet, getting renters insurance is a must. GradGuard offers policies that are specifically tailored for college students, so it's worth considering.

Deciding whether to take out tuition insurance can be a tough decision because the value of tuition insurance isn’t as clear as other forms of tuition. That said, you never know when an unexpected illness or injury may force you to leave school abruptly.

If you're relying on student debt to cover this semester's tuition, it may be wise to take out a tuition insurance policy. If you have to withdraw from school, you won't be adding to your student loan debt.

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