Entering adulthood brings new responsibilities, and managing insurance is one of the most important. Yet, insurance can often feel overwhelming or even unnecessary—until something goes wrong. At Rathbun Insurance, we believe that being informed about your options can help you make smarter choices, save money, and protect your future. Here are the top mistakes young adults tend to make with insurance and some tips to avoid them!
1. Not Understanding the Types of Coverage You Need
It’s tempting to opt for the basics, but each type of insurance serves a specific purpose. Health insurance, auto insurance, renter’s insurance, and even life insurance all cover different risks, so it’s essential to understand what each one provides. Without the right coverage, you could be left with significant expenses or, worse, be unprotected in an emergency.
Tip: Take the time to learn about each type of coverage, or reach out to our team to discuss what options make the most sense for your situation.
2. Choosing the Cheapest Option Without Considering Coverage Quality
Saving money is great, but the lowest-priced plan doesn’t always provide the protection you need. Cheap premiums can mean higher deductibles or limited coverage, leaving you at risk for out-of-pocket expenses that could cost more than you save.
Tip: Balance cost and quality. Find a plan that fits your budget but still offers adequate coverage. Our agents can help you find the best value, not just the cheapest price.
3. Ignoring Renter’s Insurance
For many young adults, renter’s insurance seems unnecessary. But without it, your personal belongings—everything from electronics to furniture—aren't protected in case of fire, theft, or other damages. Renter’s insurance is usually affordable and can offer peace of mind in the event of unexpected loss.
Tip: If you’re renting, ask for a quote. It’s one of the most affordable ways to safeguard your belongings.
4. Not Updating Your Policy When Life Changes Occur
Life changes fast, especially in your 20s. From moving to a new city or starting a new job to getting a new car, these changes can impact your insurance needs. Failing to update your policies can leave you underinsured or missing out on discounts.
Tip: Regularly review your policies and update them to reflect your current situation. If you’re unsure when to update, our team can help ensure your coverage stays current with your life.
5. Relying Solely on Parents’ Insurance
For a while, being on a parent’s health or auto insurance can work well. But as you move toward independence, it’s smart to consider transitioning to your own policies. Building your own insurance history now can also help you save on premiums down the road.
Tip: Begin exploring options, especially if you’re approaching an age limit on your parents’ policies. Setting up your own coverage sooner rather than later can pay off in the long run.
6. Not Getting an Insurance Quote When Taking Out a Loan
If you’re planning to take out a loan for a major purchase, like a car, don’t forget to get an insurance quote early on. Many loans come with specific insurance requirements. Knowing your insurance premium ahead of time will help you avoid surprise expenses and ensure you’re meeting all the requirements.
Tip: Contact us to discuss insurance options before finalizing any loan. We can help you get a quote that fits the loan requirements, making the process smoother and helping you avoid unexpected costs.
