Insurance That Meets Singles' Needs
When setting out on their own, singles face new and different challenges than ever before. While becoming part of the work force, purchasing new homes and cars, establishing credit and settling down to an independent lifestyle, buying insurance secures and protects investments that make living the single life possible.
Setting Insurance Rates
When things go wrong, singles often have no one to lean on but themselves. When that happens, they need to know their insurance plans will be there to cover expenses, provide a support system and help get them through difficult times.
But before buying the right coverage, individuals should know what factors affect their insurance rates, what they're up against in getting the cheapest policies, and what they can do to lower rates before comparing policies.
Insurance Issues that Matter
What factors really matter when it comes to insuring singles?
- Responsibility and maturity. As far as insurers are concerned, the more mature a single person's behavior, the lower the risk of claims and loss. So for those who've proven responsible during their teen years, while living with mom and dad or involved in a previous marriage, insurance is usually relatively inexpensive.
- Health. Individuals who take care of themselves can expect to pay less for the protection they need. Whereas the out-of-shape tend to contract illness more easily and have a harder time recovering, the physically fit usually have better immune systems capable of fighting off germs and disease. This increases the likelihood of good health and fewer insurance claims.
- Credit. When predicting risk, insurance companies may also take a look at credit scores. Though some singles may not have been on their own long and have limited credit histories because of it, credit reports often contain information that insurers consider telling. For example, studies show that people who pay bills regularly and on time are more likely to be careful drivers—and less likely to cause traffic accidents. Those who get ensnared in debt may have a problem controlling spending—and end up defaulting on loans and missing credit card payments, which leads to lower credit scores and higher insurance rates.
Other factors that weigh in heavily to help determine rates include:
- Claims history
- Type of car owned and driven
- Location of home purchased, and
- Pre-existing health conditions
Insurers may factor in any or all of these statistics when determining singles' insurance rates. But by understanding how their choices affect the price of insurance and using that information when setting out on their own, they can save a ton of money on the protection and coverage they need.