Insurance for Young Adults – Central’s Guide
Insurance for Young Adults at a Glance:
What Coverage Do I Need as a Young Adult? Understand the types of coverage you need as a young adult, including auto, renters, health, life and umbrella insurance.
How to Find Affordable Coverage Learn best practices for finding quality coverage with an Insurance supplier that care about you.
How to File a Claim? A step-by-step guide for filing a claim on your renters, homeowners, or auto insurance.
Customer Service Matters Knowledgeable and supportive customer service representatives can explain complex concepts clearly, empowering you to make informed decisions. Here’s why that matters.
Next Steps Get started on protecting your future.
As a young adult, navigating the world of insurance may seem daunting. However, understanding the importance of insurance and having a reliable partner like Central can help you protect yourself, your assets, and your future.
This guide will explore the various forms of coverage you need, including auto insurance, renters insurance, and additional coverage options. We’ll also provide valuable tips for finding affordable insurance and highlight the benefits of working with insurance agents to find the right protection.
What Coverage Do I Need as a Young Adult?
To effectively assess your insurance needs as a young adult, it’s important to understand the types of coverage you need to protect your financial security. Here, we outline the five most common types of insurance young adults will encounter:
Auto insurance is typically a requirement, providing coverage for car accidents, damage, and liability.
Renters insurance is essential when renting a place, protecting your personal belongings, and providing liability coverage in case of accidents.
Health insurance is vital for accessing quality healthcare and protecting against unexpected medical expenses.
Depending on your circumstances, life insurance might be worth considering to provide financial support to your loved ones in the event of your passing.
Umbrella insurance offers extended liability protection beyond the limits of your primary insurance policies. It provides an extra layer of coverage to protect your assets in the event of a significant claim or lawsuit.
Once you understand the types of insurance young adults need, it’s important to evaluate your specific circumstances and risk factors. Factors such as location, lifestyle, and personal assets can influence the type and amount of coverage you need. For example, living in an area prone to natural disasters might require additional coverage for that specific risk.
Assess your circumstances and make informed decisions about coverage limits, deductibles, and policy types to ensure you have adequate protection.
Coverage #1: Health Insurance
Health insurance is a critical component of your overall insurance portfolio. As a young adult, you can obtain health insurance through your employer, private plans, or government programs.
When selecting a health insurance plan, consider factors such as monthly premiums, deductibles, co-pays, network coverage, and the extent of coverage for services such as doctor visits, prescription medications, and hospital stays.
Keep in Mind: Central is a property and casualty insurer and does not offer health
insurance coverage.
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Coverage #2: Auto Insurance for Young Adults
Auto insurance is not only a legal requirement in most places but also serves as a crucial financial safeguard in the event of an accident. Understanding the basics of auto insurance coverage is essential for making informed decisions.
There are four main types of damages auto insurance protects against:
Liability insurance covers bodily injury and property damage you may cause to others.
Collision coverage protects your vehicle in case of accidents.
Comprehensive coverage offers protection against theft, vandalism, and non-collision incidents like fire or severe weather.
Uninsured/underinsured motorist coverage safeguards you in an accident with an at-fault driver who lacks adequate insurance.
Auto Insurance: What Should I Consider When Choosing an Auto Insurance Policy?
When choosing an auto insurance policy as a young adult, you should consider several factors to ensure you have the right coverage that meets your needs and fits your budget, including:
Coverage Limits—evaluate the coverage limits offered by the insurance policy, including liability coverage (for bodily injury and property damage to others) and coverage for your vehicle (collision and comprehensive).
Deductibles—consider the deductibles associated with the policy. A deductible is the amount you pay out of pocket before insurance coverage kicks in. Generally, higher deductibles lead to lower premiums, but make sure you choose a deductible amount you can comfortably afford in case of a claim.
Discounts and Incentives—inquire about available discounts and incentives to help lower your premium. For example, Central offers a number of discounts and credits for eligible policyholders to help you save money on your auto coverage.
Customer Service and Claims Process—research the insurer’s reputation for customer service and their claims process. A responsive and efficient claims process makes all the difference during stressful times.
Did You Know: According to Zendesk, 54% of customers report that customer service feels like an afterthought for most of the businesses they buy from. At Central, we are determined to stand out by placing customer service at the heart of everything we do.
Policy Flexibility—consider the flexibility of the policy. Can you customize the coverage to fit your specific needs? Are there optional coverages available that you may want to add? Flexibility in policy options allows you to tailor your coverage to your requirements.
Premium Costs—while finding affordable coverage is important, price should not be the sole determining factor. Compare premiums from different insurers, but also consider the coverage provided and the insurer’s reputation. Remember that the cheapest option won’t always provide adequate coverage or excellent customer service.
Auto Insurance: Central’s Competitive Auto Coverage
Central offers a wide variety of auto insurance coverages to fit your personal needs. Central’s Personal Auto Policy provides good protection at an affordable price. Combine these insurance coverages with Central’s industry-leading claims and policy service, and you receive exceptional value for your insurance dollar.
Browse through the different auto policy options and offerings from Central to get an idea of the types and extent of coverages you can receive with this form of insurance.
Central Signature Auto PolicyThe policy provides many distinct coverages including towing, transportation expenses, worldwide rental car coverage, lease and loan gap coverage, short–term replacement cost loss settlement.Central Mutual Summit Auto PolicyOffers superior auto insurance protection and benefits including: parked auto collision coverage, lockout coverage, transportation expenses coverage, fire, police, rescue squad, and ambulance service charge coverage, and personal effects coverage.Roadside AssistanceEvery Central personal auto policy includes Roadside Assistance—no sign-up required. Our Roadside Assistance program provides 24/7 access to a comprehensive network of vetted and insured roadside assistance and towing service providers.
Coverage #3: Renters Insurance
As a young adult renting a place, protecting your belongings and guarding against potential liability is crucial. Renters insurance covers your belongings in case of theft, fire, or other unexpected events. It also offers liability protection if someone is injured on your rented property.
Many young adults underestimate the value of their possessions, but the cost of replacing items like electronics, furniture, and clothing can quickly add up. “Often people feel they don’t need insurance when renting because they don’t own anything, but this isn’t true. All of your contents have value,” says Brian Dodd, a Personal Lines Underwriter at Central Insurance, “These things could all be lost, and it’s not the apartment complex’s responsibility to pay for them. A renters insurance policy may.”
Did you know: Younger people—those below the age of 35—are far more likely to rent than other age groups. About two-thirds (65.9%) of this age group lives in rentals.
With all the benefits of renters insurance, it’s important to understand your policy’s exclusions and limitations. Certain events may require additional coverage or separate policies. Review your policy carefully to know what’s covered and what’s not. By doing this and consulting with an insurance professional, you can secure the appropriate coverage for your needs.
Renters Insurance: Central’s Coverage for Young Adults
Central’s Renters Insurance policies are designed to safeguard your belongings and offer peace of mind. Don’t leave the fate of your valuables to chance—take proactive steps to protect what matters most by speaking with your Central agent about our reliable Renters Insurance Policy today.
For example: If your apartment were to catch fire, the Central Mutual Summit Tenant Policy would replace your damaged personal property without any deduction for depreciation. This policy comes with a host of additional benefits, including broadened cause of loss protection, increased coverage for personal property away from premises, credit card and forgery protection, and coverage for lost or stolen jewelry, watches, and furs up to $10,000.
Central also offers Additional Living Expenses (ALE) Coverage. Say your rental unit becomes uninhabitable due to a covered event, such as a fire or severe weather. Renters insurance can provide coverage for additional living expenses. This coverage helps with temporary accommodations, meals, and other necessary expenses while you’re displaced.
Coverage #4: Umbrella Protection
Umbrella insurance is an often overlooked but highly valuable coverage option for young adults. It provides an extra layer of liability protection that goes beyond the limits of your primary insurance policies, such as auto or home insurance.
In today’s litigious society, accidents or incidents resulting in significant financial liability are not uncommon. Umbrella insurance helps protect your assets, such as savings, investments, or future earnings, in the event of a lawsuit or high-cost claim. It offers peace of mind by providing an additional safety net when the unexpected happens.
Case Study: 24-year-old Sarah believed her basic insurance was enough until a serious car accident occurred, leaving her facing overwhelming liabilities. Without umbrella coverage, Sarah would be liable for the excess costs, risking her savings, assets, and even future earnings to satisfy legal judgments or settlement amounts. Luckily, she had added umbrella coverage to her policy, which provided an extra layer of protection beyond her auto insurance limits. Her umbrella policy covered the remaining medical expenses and legal fees.
Central’s Summit Personal Umbrella Policy adds the following valuable coverages to the standard umbrella policy:
Loss of Earnings Coverage—coverage for actual loss of earnings resulting from assisting Central in the investigation or defense of a claim or suit is increased from $250 to $1,000 per day.
Rental Car Loss of Use Coverage—pays up to $1,000 when the rental car company requires you to pay while the damaged rental car is repaired and out of service after a covered accident.
Loss Assessment Liability Coverage—pays up to $100,000 for loss assessments charged by a property owners’ association against the insured in connection with liability relating to the residence premises.
Coverage #5: Life Insurance
While life insurance may not be a pressing concern for young adults, it’s a proactive step toward future planning and financial protection. Life insurance provides a financial safety net for your loved ones in the event of your untimely passing. It can help cover funeral expenses, outstanding debts, and replace lost income, ensuring your family remains financially secure during a difficult time.
By obtaining life insurance at a young age, you can benefit from lower premiums and potentially secure coverage for the long term.
Keep in mind: Central is a property and casualty insurer and does not offer life insurance coverage.
How to Find Affordable Coverage
When searching for affordable coverage, comparing insurance quotes from multiple providers is essential. However, price is only one aspect to take into account. Be sure to consider the quality of your coverage and your insurer’s customer service reputation when picking your carrier, as these two factors matter more when the worst happens.
Always obtain quotes from different insurers and review them carefully before making an informed decision, and be sure to look for variations in coverage options, deductibles, and policy limits.
Discounts and Incentives
Young adults should take advantage of available discounts and incentive programs to further reduce insurance costs. Many insurance companies offer discounts for factors such as maintaining a good driving record, bundling policies, having safety features in your car or home, or being a student with good grades.
For example: Central offers a discount to eligible policyholders who write their auto and homeowners insurance with Central. Home insurance policyholders can also benefit from discounts when they install home safety features.
While price is important, it is essential to have adequate protection to mitigate risks and protect assets. Opting for cheaper policies may lead to gaps in coverage and financial burdens in case of accidents or liability claims.
Be sure to ask your insurer about any discounts you may qualify for and explore ways to maximize your savings without compromising coverage.
How to File a Claim
Filing an insurance claim can feel overwhelming, especially if it’s your first time. It’s important to remember your insurance is there to protect you, so don’t hesitate to use it when you need it most.
At Central, for example, our Claims department is proud to support our policyholders throughout the claim submission process. Here, they’ve provided a step-by-step guide for filing a claim on your renters, homeowners, or auto insurance.
1. Stay Calm and Promptly Report the Incident: Whether it’s a car accident, property damage, or any covered loss, report it to your insurance provider immediately.
2. Gather Information and Document Everything: Take photographs of the damage or incident scene, gather contact details from any witnesses, and, if applicable, file a police report.
Alex Hamby, Property Claims Representative at Central, explains that, in his experience, the more information you provide, the smoother the claims process will be. “Whether it’s an auto accident or a [problem] at your house with water coming in from the ceiling…[taking] pictures and videos should be your automatic response.”
3. Review Your Policy: Before contacting your insurance company, review your policy to understand the coverage limits, deductibles, and any specific requirements for filing a claim. Knowing what’s covered and what’s not will help you manage your expectations.
4. Reach Out to Your Insurance Company: Once you have all the necessary information, contact your insurance company. Be prepared to provide details about the incident and answer any questions they may have.
5. Cooperate with the Claims Adjuster: A claims adjuster will be assigned to your case to investigate and assess the damage or loss. Cooperate with the adjuster, providing truthful and accurate information to avoid any issues with your claim.
6. Get Repair Estimates (if required): Your insurance company may ask for repair estimates if your claim involves property damage. Get multiple quotes from reputable repair shops to ensure a fair assessment.
Beware of Contractor Fraud:Central’s fraud experts track trends in the market that might affect rising costs so when policyholders call and ask about the legitimacy of a quote, we can provide the most accurate information possible.
7. Review the Settlement Offer: Once the investigation is complete, your insurance company will offer a settlement based on your policy coverage and the adjuster’s assessment. Review the offer carefully, and don’t hesitate to ask questions or negotiate if you believe it’s insufficient.
Learn More: See Central’s specialized guides for auto claims.
Where to File
When filing with Central, “most people usually go online, directly to our website,” Hamby says. “The second best option besides that is filing through your agent.”
Central offers convenient claims reporting options 24 hours a day, seven days a week. E-options are also available, allowing policyholders to view their policy and pay their bill online.
Digging Deeper: Recently, Central’s Customer Services department recently assisted a young adult with their bill. To ensure a smooth payment process, Jazmine Smith, Customer Services Supervisor at Central, set up text message updates for payment receipts and introduced convenient e-options like EFT, e-billing, and e-policy. To make policy management even easier, she encouraged him to “set up a myCentral account, so he could view his policy information and auto ID cards online at any time.”
Customer Service Matters
The claims process after an incident can be overwhelming, especially if it is your first time. Working with an insurance agent and carrier that prioritizes your well-being is crucial for young adults navigating the insurance realm. Knowledgeable and supportive customer service representatives can explain complex concepts clearly and concisely, empowering you to make informed decisions.
Central is dedicated to providing accessible and timely service tailored to policyholders’ busy lifestyles. For example, our wide array of e-options was one approach to providing better solutions for our young adult policyholders, considering the generational preference for utilizing digital convenience. The myCentral portal “allows young adults to self-serve 24/7, and our customer service department is available from 8 a.m. – 9:30 p.m. EDT,” Smith says, “We are here to answer any questions our policyholders have throughout the day.”
When you have a question or concern, responsiveness matters. Insurance providers with responsive customer services teams ensure their policyholders come first, so young adults can feel valued as new customers.
The benefits of working with an insurance agent
For young adults entering the complex world of insurance, an insurance agent will be your trusted advisor who can guide you through the process. They are committed to helping you understand your coverage needs and ensure you have the right policies in place.
Agents can assess your unique circumstances, provide personalized recommendations, and assist you in finding the best coverage at the most competitive rates. Additionally, when shopping around for a new insurance policy, “Independent agencies represent a number of different insurance carriers,” says Dodd. “They can provide coverage and price comparisons in an easy-to-understand manner.” In times of claims or policy changes, they act as your advocate, providing support and expertise.
Next Steps
Insurance is a long-term commitment, and developing a trusting relationship with an insurance provider is essential. While cost is a valid consideration, remember that insurance is an investment in your lifelong financial security.
Take the next step by researching reputable insurance providers, comparing coverage options, and seeking exceptional customer service. Consult with insurance professionals who can guide you through the process and ensure you have the right coverage tailored to your needs. By prioritizing quality coverage and customer service, you can confidently navigate the insurance landscape, knowing you have made informed decisions to protect yourself, your belongings, and your future.
To learn more about how Central provides exceptional coverage and customer service, visit our website.
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