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I’m in my 20’s, what’s Insurance?

Aug 30, 2019

20 Year Old’s and Insurance

Aside from leaving school and trying to navigate the world without mum and dad’s help, we stumble across a few milestones that officially put 20 year old’s on the map.

How exciting are our 20’s, and for those of us who look back on them, they were some of the best days of our life.

Between 18 and 21, most of us are in the same boat – living at home, heading to university or tafe, and perhaps a part-time or a full-time job.

After a few years, suddenly there are a few “firsts” or “milestones” that officially make the transition from our childhood to adulthood, and these include things like:

  • Buying a new laptop or items of value
  • Buying a first car
  • Going on an overseas holiday by yourself or with friends
  • Moving out of home
  • Buying your first pet
  • Perhaps buying your first home

All of these milestones also have Insurance requirements, and it’s completely normal to feel like you know nothing about Insurance, but you may have a feeling that you need it.

You’re now earning money, starting to make some big purchases, and you’re certainly thinking about the next stage of your life. So it is important to understand how to protect yourself and your new assets if unfortunately, something doesn’t go to plan.

Navigating websites, understanding Insurance lingo, finding time to get multiple quotes, trying to understand what a PDS is (Product Disclosure Statement – this is the Insurance product you are purchasing), what it all means, what sort of cover you need, and what to do in a claims scenario is very daunting, but something an Insurance Broker like Austbrokers Comsure can help you with.

A few things to know about General Insurance:

  • Insurance is a transfer of risk. You pay a “premium” to an Insurance Broker or an Insurance Company. In exchange, the Insurance Company accepts that risk on your behalf and covers the financial costs should a loss occur.
  • Insurance Brokers are on your side. When you use a broker, they help you all the way through your Insurance process, and you know you’re getting the right cover, for the right price, and you don’t need to worry about doing any of the work.
  • Insurance provides peace of mind. Mum and dad might be telling you it’s important to get Insurance, and it is. You have to weigh up your risks (what might happen??), and considering the financial impact you could potentially face should a loss occur, an accident occurs or a disaster occurs. Insurance puts financial protection in place, so you can return to where you were before the loss occurred.
  • It’s important to get comparative quotes. A Austbrokers Comsure will take the time to get multiple quotes for you, to ensure what you’re getting is the best policy, and for the best price for your exact needs. A simple statement to understand is – “you get what you pay for”. That goes for things in life and it also applies to Insurance. It’s up to you what level of “risk” you are willing to take on.
  • Be wary of online comparison websites. They don’t compare all the products on the market, and they encourage you to focus on price rather than what you’re purchasing. You may even purchase an insurance product that doesn’t meet your needs or requirements. Be careful of this trap which is why it’s important to speak to a Broker who will compare all of this for you.
  • You must be honest. If you’re not honest when asked a question, the Insurance company has a right to not pay a claim.

So what general insurance products should you look into?

  • First Car: Consider comprehensive Motor Vehicle Insurance. Whether it’s an old or new car you are purchasing, in the event of an accident, you want to make sure you, your vehicle and the third party are covered.
  • Moving Out: Contents Insurance is extremely important, you may not feel like you own very much, but it does add up, and think about how expensive it would be if you had to replace it all again if it got damaged or destroyed. It’s also important to have the liability aspect if you are having friends over.
  • Holiday: It’s important to have Travel Insurance. Medical or dental bills in some countries can be thousands of dollars. Let alone travel delays, lost or stolen luggage, rental vehicle insurance, snow cover, the list goes on. It’s definitely important to add this to your “holiday-to-do-list” before you go.
  • Buying a House: You will need Home Insurance. Not just for things such as Storm damage, flood damage, fire, it also covers you for things like theft, breakage of glass, fusion of an electric motor (air cons / fridges), and legal liability.
  • Buying a Pet: Pet Insurance is a no brainer, should your “fur baby” suffer an injury or illness. Vet bills are so expensive, and if you don’t have the money to pay for them, you don’t want your pet suffering. This is important to have – just like health insurance yourself.
  • Buying a boat/jet ski/caravan: For those who like adventures – you might be looking to purchase a new boat or perhaps a new caravan. These are all sorts of expensive purchases that need to be Insured. Especially in the event it is damaged or stolen.

If you would like to speak to a Austbrokers Comsure Adviser about your Insurance requirements, we can help you understand what Insurance is and why you need it. Insurance jargon is hard to understand, so don’t feel like you need to know what you are talking about. That’s what we do, and we’re on your side to make this process easy. Austbrokers Comsure on  1800 122 194, if you want to speak to an Adviser.

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