A lot of things can change at age 25. You may be graduating from school or perhaps pursuing a second degree; you may be moving from residence or your parents’ place to a new apartment; maybe you’re even considering taking out a mortgage. As your life changes so do your insurance policy needs, and there are important things to consider about your existing coverage. Here’s what you need to know about tenant, auto, health and life insurance when you’re turning 25:
Tenant Insurance
Tenant insurance covers the cost of your things in case of a fire, flood or other accident. Look around your apartment and consider the price tag on everything you see – tenant insurance is a far more affordable option than replacing your possessions out of pocket. Tenant insurance also protects you in the case of damage to another part of the building, such as a bathtub leak that floods the unit below you.
You may be covered on your parents’ insurance but check their policy to be sure. While some companies will cover you if you live in residence, the coverage doesn’t always extend to apartments. Also, keep in mind that tenant insurance only covers your things – any roommates you may live with will need their own coverage.
Auto Insurance
After some time, you may be eligible for discounts on your car insurance. Remember, though, that auto insurance discounts have nothing to do with your age: what matters is how many years you’ve been driving. 9 years’ experience driving is the norm to start getting discounts, so if you started driving at 16 you should see your premiums drop around age 25.
Even if you don’t own a car or don’t plan on driving for a while, it’s worth it to stay on your parents’ insurance policy. Maintaining a consistent insurance history will keep your rate lower in the long run. A gap of 24 months or more will greatly affect your premiums.
Remember: a clean record keeps your premium low. Even a ticket for an unbuckled seatbelt can add hundreds of dollars to your annual premium.
Health/Group Benefits
If you’re a full-time student your parents can usually keep you on their group benefits policy, but rarely past the age of 25. Consider getting your own health insurance if you’re graduating soon, or if you’re turning 25 and losing coverage under your parents’ plan. As always, the best time to purchase (consider) health insurance is when you have good health.
Life Insurance
Life insurance premiums are cheaper the younger you register for your policy. Consider getting life insurance now to keep the costs down later in life. We also suggest that if you have a mortgage do not get mortgage insurance. Instead, get life insurance with mortgage protection. If the unthinkable happens, anything unpaid on your mortgage will be covered and your debts won’t pass on to your family.
At MacLeod Lorway, we can help you find the right policies for your changing situation, whatever that might be. To learn more about your insurance needs, call 1-800-463-6665 or visit https://www.macleodlorway.com/contact for the MacLeod Lorway location nearest you.