Graduation season is here – filled with excitement, pride, and big life changes. Whether your graduate is finishing high school or college, this milestone often marks the beginning of new adventures: moving out, starting a job, or continuing education. Amidst all the celebrations and transitions, it’s easy to overlook a crucial element – insurance.
As your family navigates this exciting time, here are some important insurance tips for both new grads and their parents to ensure peace of mind and the right protection.
Auto Insurance. If your grad is moving away, commuting to a new job, or buying their car, it’s a good time to review your automobile insurance policy. Consider the following:
- Staying On The Family Policy: In many cases, recent grads can remain on a parent’s auto policy if they’re still considered a dependent or living at home part time.
- New Car, New Policy: If your grad is buying their vehicle or moving to another state, they may need their auto insurance policy.
- Good Student Discounts: If your graduate is heading to college, don’t forget to ask about good student discounts and potential savings who leave their car at home.
Health Insurance. Under the Affordable Care Act, young adults can stay on their parents’ health insurance plan until age 26 – but there are a few things to keep in mind:
- Graduating from College? Your student health plan may end after graduation. Be sure to confirm the dates.
- Starting a New Job? If your employer offers health insurance, compare the benefits and costs with staying on your parents’ plan when making your decision.
- No Coverage? A short-term health plan or coverage through the Healthcare Marketplace may be a good bridge option.
Renters Insurance. Many grads move into their place after graduation and may not realize that their belongings aren’t covered under a landlord’s insurance. That’s where renters' insurance comes in. Renters' insurance helps cover personal property, provides liability protection, and is typically low-cost.
Life Insurance. While life insurance might not be top of mind for young adults, it can be a good time to start thinking about it, especially if your grad had student loans, a partner or dependents, or a desire to lock in lower rates while young and healthy. Even a small policy can help lay the foundation for a strong financial future.
Personal Liability and Umbrella Coverage. As grads step into adulthood, they take on new responsibilities and risks. Whether they’re driving more, hosting gatherings, or using social media in a professional context, liability protection is important. A personal umbrella policy can provide an extra layer of coverage above home and auto policies for unexpected incidents.
Graduation is a major life milestone, and life changes are the perfect time to review your insurance. At DGK Insurance, we’re here to help you and your graduate understand your options and make informed decisions. Whether you’re adjusting to a current policy or starting fresh, our team can guide you every step of the way.