Insurance for the Newly Grown Up

We often hear young adults say that they feel “all grown up” once they need to obtain their own insurance policies. But these new grown ups have a lot of questions about insurance… Who needs it? What it covers? Where you get it? … And it’s important to get these questions answered as many young adults find themselves underinsured, or without coverage at all.

Here are some coverages most new “grown ups” should consider:


Auto Insurance

If you drive a car, you need auto insurance. Every state requires a minimum amount of liability coverage, in order to ensure that if you damage someone else’s property while operating your car, some of that is at least covered.

Unfortunately, young drivers pay more for car insurance because they have limited driving experience. Young adult drivers often pay more until they are 25 or 26.


Renters Insurance

Are you currently living in an apartment? Think of all the belongings you have in your apartment. If your things were damaged or stolen, would you and your family be able to afford to replace them? Renters insurance can be purchased for a low monthly cost and help you protect your personal property. It also can provide liability coverage should someone slip and fall or get injured in your apartment.


Health Insurance

Every individual must have health insurance coverage. Your employer may offer coverage, or you can obtain a policy of your own through the Health Insurance Marketplace. If you are a student, you can stay on your parents’ health-insurance plan until age 26 – even if you are married or have coverage through an employer.

If you are looking for health insurance outside of the open enrollment period, a short-term medical policy can help fill your health insurance coverage gap.

No matter where you obtain your health insurance, your policy should cover the same set of essential health benefits including doctor visits, hospital stays, preventive services, and prescription drugs.


Life Insurance

Many young adults think that life insurance is only needed once you have kids. But even young people should consider coverage in case of accidental death, whereby the policy would pay out for funeral expenses and any outstanding debt (like student loans) or other bills which would still need to be paid.

The best resource for you if you have questions about insurance is your agent. They will explain the different types of coverage, along with your options, and help you determine what protection is right for you given your current situation.



Did You Know?…

  • Most insurance companies offer multi-policy discounts if you have auto and renters policies with them.
  • Drivers under 21 may be able to get a discount on auto insurance if they complete an approved driver education/training program.
  • The majority of young people choose to have health insurance when an affordable option is offered through school or the workplace.