Most expensive insurance mistakes
September 29, 2009 by Jennifer Chait
Filed under Health & Wellness
This summer Grad Guard put together a pretty interesting list of the most expensive insurance mistakes young adult make when entering the workforce for the first time. If you’re a new college graduate obviously these tips will apply, however, even if you’ve been in the workforce for a while, it’s always good to check up on your insurance savvy. Mistakes cost the same at age 23 as they do at age 33 – although, since as you age you’re likely to run into more health issues, possibly insurance mistakes could cost you more the older you get.
Here are the five most expensive mistakes you can make according to Grad Guard…
- Not recognizing that your health insurance coverage may have changed upon graduation from college, (if you had coverage) which can often cause them to be dropped from both your school and parents’ policies.
- Traveling overseas without travel insurance. Anytime you travel outside of the United States, the medical and property and casualty insurance policies that would normally cover you typically cease to work.
- Purchasing only the minimum liability coverage for auto insurance, leaving yourself unprotected and subject to wage garnishment for uncovered injuries and damage. For example, hitting an expensive car with multiple passengers may leave you on the hook for all damages due after the insurance company paid what could be very low state compulsory limits.
- “Skipping” or failing to purchase renters insurance to save money, not realizing that it not only covers their belongings, but also includes liability protection for damage or harm to the property or its visitors while
occupying the space. As an example, if a guest slips and falls during a party, breaking their ankle as their foot goes through the wall, the resident can be sued. Not only would they be responsible for medical costs and wall repair, but also potentially responsible for an expensive settlement from the case. - Finally, one of the most expensive mistakes young adults (or older adults) can make is to not realize that they have control over their insurance costs as a result of decisions they make every day. For example, driving safely does more than just protect themselves and others from injury and collision repair. Tickets and accidents can rapidly make insurance cost more than rent.
Grad Guard is an online resource dedicated to the insurance needs of young adults ages 18-25. Offering insurance programs including gap health insurance between graduation and full-time employment, travel insurance for graduation trips or renters insurance for personal possessions.
One more thing to point out is thinking you don’t need insurance. In that case you’re at risk to all or any condition. Many US citizens go without insurance because they think they do not need it and because it’s not mandatory like car insurance. What they do not realize is that the sooner they get it, the better. You don’t want to earn all that money and save it up only to lose it by you’re 40. Also, many drivers get car insurance at the time of buying a car but then discontinue their plans. There are so many examples of people who have suffered because of these bad decisions. It’s better safe than sorry.
Thanks for posting this! My husband and I graduated from college in 2008 and just found out that we still qualify for good student discount for auto insurance until we’re 25. This motivated me to call and get signed up. Also found out that I qualify for a safe driver discount that saves $65 over 6 months on our most expensive car. YAY! Remember to call and ask about discounts because you never know if there’s one out there.
Thanks, you really covered all the bases. Here’s some additional information your readers might also find interesting including a story and photo of a half submerged SUV that didn’t have gap insurance. http://gapautoinsurancecoverage.com/Underwater.html