Insurance Purchasing Tips for Millennials

Insurance Purchasing Tips for Millennials

You have hit the age where everything has started to pile up all at once. Student loans, rent, car payment, insurance, insurance, insurance. Don’t fret because if you plan smartly and understand the benefits of buying insurance. A good life insurance plan can provide you with protection for the inevitable and provide a long-term financial security safety net.

The problem is that the current generation with buying power “millennials” are considered the least insured generation. (According to a survey from the Princeton Survey Research Associates International)

This is due to many factors but most of them lead back to “it’s too expensive.” “I’m healthy, I don’t need it or will ever use it.” Insurance generally costs a lot less than what you are thinking, and renter’s insurance costs alone get overestimated by millennials but more than five times the actual costs.

There are so many things insurance covers that you will never be expecting that it just makes too much sense not to have it. Break-ins, car accidents, etc. You can be prepared for what you can’t predict!

Need help on the best practices for buying insurance? Here are five tips that will start you on a path to long-term protection.

• Smart shopping.  While shopping for insurance it is smart to make adequate coverage the top priority. Determine the type and amount of coverage you will need, and what your budget is. (We can always help and are just a phone call away at 614-863-0455) Keep in mind, buying the lowest-priced insurance is not always the fiscally smart thing to do. Think of a car accident, you saved $100 per year on your insurance when you purchased it and opted for a $1000 deductible over a $500 one. You get into an accident, you’re at fault or fault can't be determined and you need to get your car repaired. Would you rather be paying $500 or $1000 to get your car fixed? You must think in terms of what you can afford now for coverage vs. what you can afford if an accident happens.

• Discounts.  Once you narrow down what your budget is and how much coverage you need, you can look around for any discounts you may be eligible for. Carriers often offer discounts for paying your policy in full, having a history of safe driving, good grades in school and bundling your policies together under one carrier. Always ask and start saving.

• Fill in the gaps.  Most policies will cover all the basics and while buying online on your own can be quick, easy, and inexpensive, you may need extra coverage to meet your needs. If you have expensive items in your home that would be hard/impossible to replace in case of loss, you can add extra coverage to cover those items.

• You aren’t too young to purchase life insurance.  Life insurance is essential for everyone despite how much you think your worth is. For a millennial, it’s cheap to get a good policy due to being younger and healthier. If you have kids and you, or your partner pass, a life insurance policy can help cover funeral arrangements in the short term as well as expensive long-term costs such as child care, and even help pay for your kid’s college expenses someday. Long-term disability coverage also should be considered in the case of becoming disabled and not being able to work.

• Work with independent agents like us.  (See: What is an Independent Insurance Agent) Independent insurance agents are an amazing resource, especially for first-time purchasers. We work with numerous carriers, so we can do the shopping for you with multiple companies to ensure you get the best price with the right amount of coverage and not miss any details on what you would need. We have the experience to be able to provide a clear understanding to you about the coverage you need, the discounts you are eligible for, and any changes you should be aware of going forward when you need to add or remove coverage.

Insurance can be one of the toughest things to consider and when you’re young it's hard to spend the money and there are many reasons you will tell yourself to not purchase it. Ditch the financial short-sighted benefits of opting against insurance and think about the long-term benefits and protection it provides and be thankful there are places (Like the Arnold Insurance Agency) here to help you navigate and work with you to start provided stability for your future. Learn more about personal insurance by visiting us at our website, Facebook, Twitter, or give us a call at 614-863-0455.

Myths About Renters Insurance

Renters Insurance is a policy that covers property owned by the renter in the event of loss, theft, fire, and other damages. There are usually multiple levels of coverage you can choose from that provides the best protection. If for some reason the place you’re are renting becomes uninhabitable for a period, your policy may help pay for you to stay elsewhere temporarily.

Items that are covered will be listed in the policy’s text and maybe up to the renter to provide photos or proof of ownership to the insurance provider. There may also be liability coverage included in a policy to protect renters in case someone gets injured or someone else’s property is damaged while in your property.

Myths:

• It’s Expensive

If you think of the difference in premium in owning vs. renting. Renters have a big advantage in terms of the amount you pay for insurance. The average premium for homeowner’s insurance is $1000 per year. The average price for a renter’s insurance policy is between $150-$200. That’s only about $15-$30 a month.

• One tenant’s policy covers everybody’s stuff

While your items may be covered if you have a roommate with a renters insurance policy. It is usually not guaranteed and not likely. Insurance usually only covers the persons whose name appears on the policy. Signing a joint policy is easy to do from your provider and sometimes can mean paying less per person per year.

• Your possessions aren’t valuable enough to insure

Even if you don’t own a brand new TV, computer, or home gym, you will still have items that warrant insurance. If you add up all your items like kitchenware, clothes, etc. It adds up quickly and would be costly to replace by yourself without the help of renter’s insurance. Always consider the total value of ALL your items and how much it would be to replace, not just your most expensive.

• Without the risk of severe weather, a policy isn’t worth it.

Even if you don’t like in an area where earthquakes and tornados aren’t likely many insurance policies can provide coverage for more likely events such as vandalism, fire, water damage, and burglaries. There are separate policies that cover related events.

• Landlord’s Insurance Covers Personal Property

The landlord will have his own insurance, but this will cover the building itself not the items in it. This means items that are stolen or damaged inside the property will not fall to the landlord or his coverage to replace. Most landlords will require their tenants to have a renters insurance policy in place while renting.

• If you live near water you can’t get insurance

It is true that some carriers won’t provide insurance to a tenant who lives in a coastal type area. This is due to wind damage and the possibility of flooding. The best course of action is to research which companies will provide coverage in those areas and contact them to see what your options are.

Before buying renters insurance you should talk with your provider to ask any questions you may have and get clarification on what costs and coverages are available. Providers like the ones here at Arnold Insurance Agency have years of experience providing coverage for almost any situation and we guarantee we will do everything to get you the best policy for the best price and help you chose a plan that will give you peace of mind. As one of Ohio’s premier personal insurance agencies, we work with dozens of the top insurance carriers in the state to shop around for the best policy you can get.

Call us at 614-863-0455 or email at info@arnoldinsuranceagency.com for a free quote today!