7 Insurance Considerations for the New Graduate

Congratulations, graduates! You are entering a new life stage and these are exciting times. You'll likely need to make some important insurance-related decisions soon. By better understanding insurance policies and your needs at this stage, you can get the most out of the money you spend on insurance. This consumer alert from the National Association of Insurance Commissioners (NAIC) offers several suggestions.

You've grown up seeing clever insurance commercials featuring crafty tag lines on television, but how much do you really know about insurance and the coverage you need now that you've graduated? The NAIC maintains Insure U, a website dedicated to unbiased insurance information for consumers as a useful resource. The following is a list of questions and suggestions for you to contemplate as you talk to an insurance professional about your specific needs.

  1. Renter's insurance can protect your personal property against damage or loss and also protects you in case someone is injured while in your residence. If you plan to rent an apartment or other residence, do you need renters insurance?

  2. You might be sharing your apartment or house with roommates. In this case, you likely need an individual policy that covers you and your possessions if something should happen. Speaking of your stuff, have you taken an inventory of your personal property recently?

  3. As you sort through job prospects, don't make the salary your only consideration. Health insurance is perhaps the most important job-related benefit. Study the health plans prospective employers provide and make inquiries about your options and the out-of-pocket costs. Weigh this against the cost of remaining on a parent's plan. Current law allows you to stay on your parent's plan until you turn 26.

  4. Will you be looking for a car soon? Remember to factor in the cost of auto insurance. If the car was a graduation gift or you are jumping off your parents' auto insurance policy, it's time for you to discuss your coverage with an agent.

  5. If you drive an older car that is paid off, you might consider dropping collision or comprehensive coverage as a way to cut expenses. Talk to your insurance professional about the cost of collision and comprehensive coverage versus the value of the car.

  6. In most states, the law requires you to maintain auto liability insurance to cover losses caused by your negligence, and sometimes you're required to carry personal injury protection coverage. To avoid penalties, pay your premiums on time and don't let your coverage lapse. Have you filed a claim recently? Ask your insurance professional about accident forgiveness, which may lower your rates.

  7. There are differing opinions about the importance of purchasing life insurance unless you support individuals whose livelihood is dependent upon your income. As a young single, you should make choices based on your finances, health and other circumstances. Consider consulting a financial or insurance professional to learn more.

Some prudent steps and asking the right questions of your insurance professional can help you control your insurance costs.

More Information
Insure U has a page devoted to young singles and single parents. Insurance is regulated by your state insurance department. To make sure an agent selling home, health, auto or life insurance is licensed in your state, or if you have questions about insurance, contact your state insurance department.

May 2018

About the NAIC

As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. For more information, visit www.naic.org.

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