As a young single, you're on your own without parental support for the first time. You could be finishing college, or you may be looking for or starting a new job. This stage of your life might require you to leave your hometown and move to a different city or state. It also means new responsibilities, including building the foundation of your financial security. At this point in your life, it's important to understand that your financial decisions even very early ones have long-term implications. That's especially the case with insurance coverage. So you'll want to make informed choices about what kind of coverage is best for you.
Many factors come in to play when insurance companies calculate premiums. Age, prior claims, driving record, including speeding and other traffic violations in recent years, and the kind of car, how many miles and where you drive are all considerations. Though young people tend to pay more for auto insurance, there are ways to reduce costs. Dropping collision coverage on older cars, raising the deductible on comprehensive coverage and maintaining a good driving record all work in your favor. If you pay for your own insurance, it is prudent that you not let coverage lapse to save money and you pay all premiums on time. For more information on auto insurance, click here for information on our website or go to InsureU.
At this stage in your life, you are more likely to be a renter. Renters insurance covers the majority of your possessions if they are lost to fire or catastrophe. It also provides liability coverage against lawsuits due to accidents that may happen on your watch. Having renters insurance also helps establish a steady insurance record. If you are responsible as a renter, and show that you are low risk, obtaining homeowners insurance when you do buy a house should be a snap. We have more information on home insurance on our website, or go to InsureU.
There are differing opinions about the importance of purchasing life insurance as a young single since you are unlikely to support individuals whose livelihood is dependent upon your income. While buying a policy early in your life will provide you with better deals and potentially guarantee your insurability, some experts doubt that individuals need life insurance at a young age when they typically don't have dependents. Consider your choices and make a decision based on your finances, health and other circumstances. For more information about life insurance, go to InsureU.
While you are young and healthy, you might actually feel that you don't need health insurance. In fact, you might be tempted to do without coverage because you are strapped for cash and want to avoid paying the premiums. If you are jobless and not covered by your parents health insurance, forgoing health coverage can be a dangerous proposition. There are ways to control health insurance costs during an unemployed period, including the purchase of a high-deductible major medical policy that only covers very serious or catastrophic health costs or setting up a Health Savings Account. Learn more about health insurance on our website, or go to InsureU.
When you feel like you have a good handle on what insurance issues are important for you, take the InsureU Quiz.