On Your Own And Covered: Keeping Insurance After Moving Out

Articles on Insurance | Topics: insurance, insuring

by Duane Zamora

Now you're heading to college and you are worried about losing your insurance that you had when you lived with your parents. Insurance that you had at home usually doesn't carry with you unless you are home. These are important factors to look into before you can make any kind of decision about insurance. Should you be worried? Will the coverage follow you no matter where you live? All good questions that need some good answers. Let's look and see if we can figure it out. Now that you know college is in your future it's time to check all your options you have for health insurance.

If you are staying in school most companies will let you keep your parent's coverage as long as you're between the ages of 19-25. Now not every policy will let you do this and there could be some exclusions that you're not aware of. The best thing to do is have your agent check the policy to make sure you're covered in the way you want to be. It's always best to have more than enough coverage than not enough. Another option that you have open is COBRA. COBRA is the Consolidated Omnibus Budget Reconciliation Act which basically means you could be eligible for temporary insurance coverage under the act by continuing the coverage your parents have on you. As always check with your parent's agent to see if you're eligible.

Short term insurance coverage is something that you might consider, if you will no longer be covered on your parent's policy, or if you were never covered to begin with. If you're getting a job in a short period of time you may only need a short term fix for your insurance needs. Try comparison shopping for short term insurance as the prices could vary with different carriers. Short term insurance is just what the name implies, for a short period of time. This also means that the price may be more costly than most can afford. College students tend to have to pay higher prices than those not currently enrolled in school, so if you are a student, this might not be the bet option for you.

Individual health insurance coverage will keep you covered permanently, but has a lot of drawbacks as well. Individual coverage can be quite expensive and you probably will have to qualify medically to get coverage. This is really a last resort as you should try the other options like getting it through your employer or through COBRA might even be a little cheaper. Different jobs from different companies sometimes give you instant coverage. Other companies give you coverage usually 30-90 days after you're hired in. If you are seeking a low premium, you can select a higher deductible.

Quote of the Day

Whoever incites anger has a strong insurance against indifference.

—Philip Dormer Stanhope, 4th Earl Chesterfield (1694–1773)

College students might even have the luxury of going to their school and see if they have insurance that is available to students enrolled at the college. Many times schools can get a cheaper rate for their students while their attending. This is something you may look into before you purchase any kind of insurance.

Parents may also have the option of insuring you while you're in school on their own policy for a little more than they normally pay. Insurance agents will be able to help you out with that if it's available. Most agents will try and work with you as their job is to make money and helping you out now will earn them a customer in the future. It's just good business sense. Make sure you check back often with your agents as today's insurance market is ever changing.

Insurance is probably one of the most misunderstood things for young college students. Never really dealing with it most of their lives it's hard for students now to realize they have to take the lead in getting insurance coverage. Words like COBRA and deductible can sometimes overwhelm the young college student. Proper education is the key to making sound decisions when it comes to buying insurance. In the end you will need to sit down with people you trust and make informed decisions on your insurance needs. There are many variables so sitting down with people you trust are very important before you sign any agreement.

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Please note: All personal opinions expressed in the "On Your Own And Covered: Keeping Insurance After Moving Out" article belong to the contributing author and are not necessarily shared by BusinessInvestingFinance.com.

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