Typically, it makes sense to bundle all of your family members together under one insurer. The more you have, the cheaper it might be. However, this is not always the case, as Millennials have different needs than their parents. It might be in your best interest and you might find that it pays to not have your parent’s insurance provider.
You don’t need the same coverage
The more in assets you have, the more insurance you need. For parents, their net worth has grown and they have more to protect. You might not need the $300k liability coverage but maybe the $100k, if your net worth is lower. If you are in the same insurance bundle as your parents, you might be paying more based on what the insurance agent assumes about your family.
Deep dive into how much coverage you actually have. Do you have enough if you are in a car accident? Is your car covered and the other persons? For homeowners/rents insurance, are you covering all of your valuables? Do a rough home inventory and see what all you own and how much it costs. You might find that what you need does not match up to what you have.
Price check competitors
Every year, I encourage you to shop around for a new insurance provider. It is always good to price check to make sure you are getting the most bang for your buck. If you have insurances you can bundle together (home, car, etc) the better deal you can get. Tip: as you are checking out competitors, make sure you are getting “apples to apples” comparison.
Your parents have probably stayed with the same insurance provider because of the ease and comfort. Their rates probably raise slightly every few years, but it would take energy and time to switch providers.
You don’t need the same service
Millennials have stated that they look for convenience over service. And, what is one of the most expensive costs in insurance? The customer service or agent that you have. Generation X finds it comforting to be able to call up an agent and chat with them with any of their needs. If you are fine with not always having a specific agent, insurers like Gieco would be perfect.
Additionally, parents tend to have multiple policies based on their needs as they grow older. They might have life insurance, umbrella insurance, homeowners insurance, car insurance. Millennials just starting out might only need car insurance. You will want to reassess every year what you need.
Do some online comparisons for car and homeowners/renters insurance to see if you can get a lower price. Of course, the older you get, the lower your insurance should be (yay good drivers discount!). Also, if possible, pay your insurance in a lump sum for the year – you can usually get a slightly cheaper price than opting to pay month-to-month. If you never look, you might not get the discounts or price cut that you deserve.
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