Back-to-School Insurance Checklist: 3 Updates California Parents Should Make

Back-to-school shopping usually means backpacks, school supplies, new shoes and maybe a new laptop.

But there is another checklist many parents do not think about until something goes wrong: your insurance and financial protection.

A new school year can change how your household operates. Your teenager may have earned a learner's permit or driver's license. Your babysitter or nanny may suddenly be driving your children to soccer practice, band rehearsal or after-school tutoring. And if your child is getting closer to college, you may be thinking more seriously about how you will pay for education.

Those changes can create new insurance and financial considerations.

Here are three back-to-school reviews that could help you avoid an unpleasant surprise later.

1. Your Teenager Is Driving Now. Did Your Auto Policy Change?

This is one of the biggest insurance changes that can happen in a household.

California requires drivers to maintain financial responsibility, and standard auto policies must meet the state's required liability limits. Since January 1, 2025, those standard minimum limits have been 30,000 per person/60,000 per accident for bodily injury and $15,000 for property damage.

But simply having the minimum required coverage does not necessarily mean it is the right amount of protection for your household.

Real-life example

Imagine your 17-year-old gets a driver's license in August.

You tell your teenager, “You can use Mom's SUV to get to school and back.”

Two weeks later, your teenager accidentally rear-ends another vehicle during morning traffic. The other driver and passengers are injured, and the property damage is significant.

The question isn't just, “Do we have insurance?”

You also need to know:

• Was your teenager properly disclosed to the insurer?
• Was the vehicle being used as expected under the policy?
• Are your liability limits appropriate for your family's assets and exposure?
• Does your policy include uninsured/underinsured motorist coverage?
• Are there discounts available for the student or driver?

California's Department of Insurance specifically advises parents to address insurance when a young driver enters the household.

Don't wait for the accident to find out.

If your teenager recently received a permit or license, contact your insurance professional and ask how your carrier wants the driver handled.

Also ask about student-driver discounts, good-driver programs when applicable, and whether your liability limits should be reviewed.

The goal isn't simply to add another driver. It's to make sure your coverage reflects the risk that comes with having a new driver in the household.

2. Your Babysitter or Nanny Is Driving Your Kids. What Happens If There's an Accident?

This is one parents may overlook.

Your babysitter may start out simply watching the children at home. Then the school year begins.

Suddenly, you're asking:

“Can you pick them up from school, take them to soccer practice, grab dinner and bring them home?”

Now someone who isn't a member of your household may regularly be driving your children in your vehicle.

That is when you should stop and review your auto policy.

Real-life example

Let's say Maria hires a babysitter named Jasmine to watch her two children after school.

Jasmine has permission to drive Maria's SUV to pick the kids up from school and take them to their activities.

One afternoon, while Jasmine is driving the children to soccer practice, another driver runs a red light and causes an accident.

Maria may be thinking:

“Jasmine was driving my car, so I assume we're covered.”

That may be true in many situations involving a permissive driver, but don't make that assumption without checking your actual policy.

Permissive use generally refers to someone driving your vehicle with your permission. However, coverage can depend on the policy language, the driver's status, how regularly the person uses the vehicle and the circumstances of the accident.

So if your babysitter occasionally borrows your car, that's one conversation.

If your nanny drives your children every day, that may be a different underwriting situation.

What should a parent ask?

If another person regularly drives your vehicle, ask your insurance professional:

• Is permissive use applicable under my policy?
• Does the regular use of my vehicle by this person require them to be listed?
• Does my carrier have specific rules for household employees?
• Should we review our liability limits?
• Does the driver have their own auto insurance?Are there any exclusions or restrictions I need to know about?

And there is another issue parents should not overlook.

If you hire someone to regularly work in or around your home, you may be considered a household employer under California rules. The California Employment Development Department specifically includes certain household workers among those who may qualify as household employees.

So this isn't just an insurance question. Depending on the arrangement and wages paid, there can also be California payroll-tax and employment responsibilities.

The takeaway: If your babysitter or nanny is regularly driving your children or your vehicle, don't wait until an accident to ask whether your coverage applies.

3. Your Child Is Getting Closer to College. Have You Started Planning?

Back-to-school isn't only about insurance.

It is also an opportunity to look at the financial protection you're building for your child's future.

If college or another qualified education program is several years away, a 529 plan may be one option worth researching.

California's ScholarShare 529 program allows families to save for qualified education expenses, with tax-free growth and tax-free withdrawals when funds are used for qualified expenses. California does not, however, provide a state income-tax deduction for contributions.

Real-life example

Imagine your child is entering ninth grade.

College feels far away, so you haven't started saving yet.

Instead of waiting until senior year, you decide to establish a monthly contribution that fits your household budget.

The objective isn't necessarily to pay for every future college expense.

It's to start creating a dedicated pool of money that can grow over time and potentially reduce the amount your family needs to borrow later.

A 529 isn't right for every family, and parents should consider their broader financial situation and goals before choosing an education-savings strategy.

But the back-to-school season can be a good annual reminder to ask:

“Are we doing something today that will make our child's education expenses easier to manage tomorrow?”

Your Back-to-School Insurance Checkup

You don't have to wait for an accident, claim or financial emergency to discover that your household has changed.

Take 20 minutes and review these questions:

Teen driver

Did my child get a permit or license?

Does my insurance company know?

Are my liability limits appropriate?

Babysitter or nanny

Does someone else regularly drive my children?

Do they drive my vehicle?

Have I confirmed how my policy treats that driver?

Homeowners

Have I hired someone to regularly work in my home?

Have I reviewed my liability coverage and household-employer responsibilities?

Financial planning

Am I saving for my child's future education?

Does my current strategy still make sense for my family?

What Should You Do Next?

If any of these situations sound familiar, don't wait until something happens.

Start with your current policy. Pull out your auto and homeowners declaration pages and check the listed drivers, vehicles, coverage limits and deductibles. California's Department of Insurance recommends reviewing these details and contacting your agent or insurer in writing when changes are needed.

Then ask for a policy review.

If you are adding a teen driver, hiring a nanny, having a babysitter regularly drive your children, purchasing another vehicle or simply realizing that your coverage hasn't been reviewed in years, those are all good reasons to request an updated quote.

If you need a new personal insurance policy or want to compare your current coverage with other available options, you can request a quote and begin the conversation.

Now I want to hear from you.

Have you ever had an insurance surprise because something changed in your household and you didn't realize your policy needed to be updated?

Maybe it was a teen driver, a babysitter using your car, a claim you weren't sure would be covered, or something completely different.

Share your experience in the comments, or request a quote if you're ready to review your coverage.

Sometimes the best insurance lesson is the one we learn before the next claim happens.