What Type of Insurance Do Young Adults Need?

More Than Just Auto Insurance…

Young adults need to make sure that they do not under-insure themselves. It is common for younger drivers to pay more for their auto insurance, since they tend to lack road experience and often do not react quickly or correctly in dangerous situations. A common technique many online and direct insurers will use to lower a person’s insurance cost is to induce them to purchase lower amounts of coverage. This poses a significant risk to the driver. Even if someone is newly licensed, if they are involved in a major accident that they caused, they can be sued for large sums of money and can have their future wages garnished.

Protecting Your Belongings

For young adults, if they reside at home with their parents the home insurance policy in effect will also cover them. This would provide coverage for personal belongings and for liability protection if the young adult is sued. If the child moves into a college dorm- i.e. on campus housing- she or he is also covered, getting 10% of the contents coverage from their parent home insurance and full liability coverage. However, if the child moves to an off campus apartment then he or she must get their own tenants policy to be covered in anyway.