Students may place themselves at a higher risk of debt if they fail to inform insurers of a change in circumstances, it has been claimed.
Mike Powell, a consultant from Defaqto, has stated that those who move away to university may be unaware that if they are parking their car at a shared house or halls of residence, they must inform their insurance company.
“Failing to do this may mean that your insurer could refuse to deal with any claim made under the policy.”
He also recommended that students should amend their car registration documents as it is required by law.
Meanwhile, kids as young as 11 have started saving for university as they have watched older relatives be affected by student debt, child trust fund provider the Children’s Mutual has revealed.
A study from the organisation found that 78 per cent of parents think the credit crunch has restricted their ability to fund their children’s higher education.