What New Grads Need to Know

Graduating from college is an exciting milestone. As you transition into the working world, your insurance needs will change. Knowing how to navigate health, auto, renters, and other insurance options can save you money and help protect your future. This guide offers practical tips for new college graduates in Pennsylvania so you can make informed decisions.

Health Insurance Options

Stay on a Parent’s Plan

Under federal law, you can remain on a parent’s health insurance plan until age 26, regardless of student status, marital status, or financial dependency. If your parents’ plan is in Pennsylvania and covers you, this is often the most cost-effective option, though it’s always wise to confirm eligibility and enrollment deadlines with your parent’s insurance provider, as state-specific regulations can sometimes add nuances to these federal guidelines.

Employer-Sponsored Coverage

Many entry-level jobs come with health benefits. If your employer offers coverage, review the plan carefully. Look at deductibles, co-pays, and networks. Even if premiums are higher, having access to in-network providers and prescription drug coverage can help protect your health and finances.

Marketplace Plans

If you don’t have access to employer-sponsored coverage, you can explore plans on the Health Insurance Marketplace. Some states operate their own marketplaces, while others use the federal platform at Healthcare.gov. To find the right marketplace for you, visit Healthcare.gov and enter your new state of residence. Subsidies may be available based on your income, making coverage more affordable. Compare bronze, silver, and gold tiers to balance premiums and out-of-pocket costs. Always enroll during the open enrollment period or when you qualify for a special enrollment period (for example, after your graduation date).

Auto Insurance Considerations

Graduating from Student Discounts

If you were insured under a student discount because you lived away for school, that discount may expire once you graduate. Notify your insurance company of your new address and employment status to avoid coverage gaps and ensure accurate premiums.

Choosing the Right Coverage Levels

Minimum liability limits are often required by law, but these limits often aren’t enough if you cause a serious accident. Consider higher liability limits to help protect your assets. Use phrases like “Can help protect” instead of promising coverage. For example, a $100,000 per person/$300,000 per accident liability limit can help protect your savings if you’re at fault.

Bundling Discounts

If you purchase renters or other personal insurance, bundling those policies with your auto insurance can help cover multiple exposures under one company. Bundling often yields multi-policy discounts, which can help reduce your overall premium.

Renters Insurance Basics

Why Renters Insurance Matters

Whether you’re moving into a first apartment or a shared house, renters insurance can help protect your personal belongings against theft, fire, or water damage. Even if your landlord requires you to have coverage, it’s important to understand what’s actually included.

Coverage Components

• Personal Property Coverage: Can help cover the cost to replace items like electronics, furniture, and clothing if they’re stolen or destroyed.
• Liability Coverage: Can help cover legal expenses if someone is injured in your rental space and you’re found responsible.
• Additional Living Expenses: If a covered loss forces you out of your home, this can help cover temporary housing costs.

Choosing Policy Limits

Estimate the value of your belongings by making a home inventory. Conservative limits on your personal property coverage may leave you underinsured. If you have high-value items (for example, a laptop or camera equipment), consider adding a scheduled personal property endorsement. Always ask: “How much insurance do I really need?” in relation to your budget.

Life and Disability Insurance Awareness

Life Insurance for Dependents

If someone (for example, a spouse or parent) depends on your income, a small-term life insurance policy can help protect them. Look at term life policies rather than permanent policies. Term life is generally very affordable for young adults in good health and can help protect your loved ones if something unexpected happens.

Disability Insurance

Your ability to earn an income is your most valuable asset. Employer-provided short-term disability coverage often doesn’t replace 100% of your salary. Consider supplemental disability insurance to help cover living expenses if you become unable to work due to illness or injury. Again, look for policies that state they “Can help protect” your income rather than guarantee it.

Professional Liability and Other Policies

Professional Liability (Errors & Omissions)

If you work in a profession where advice or services could lead to financial harm (for example, consulting, IT, or real estate), professional liability insurance can help cover legal defense costs and settlements. Even as a new graduate, an entry-level consulting role can expose you to risk. It’s important to note that specific requirements for professional liability insurance can vary by state and by profession.

Umbrella Insurance

An umbrella policy sits on top of your auto and renters insurance and provides extra liability coverage–often in increments of $1 million. If you’re sued for an amount that exceeds your underlying policy limits, umbrella coverage can help cover the difference. It’s generally affordable and can help protect your long-term savings.

Tips for Shopping Around

Compare Multiple Quotes

A key benefit of working with Richard B. Ryon Insurance is that we can shop multiple insurance companies on your behalf. Instead of contacting each provider yourself, our licensed agents gather quotes from top carriers to help you find competitive rates. We don’t just focus on price; we also review customer service ratings and financial strength to make sure you’re choosing a reliable insurer.

Ask About Discounts

As a new graduate, you may qualify for discounts not tied to student status:

• Good Driver Discounts: If you have a clean driving record.
• Low Mileage Discounts: If you work from home or bike and walk instead of driving.
• Safety Features: If your vehicle has anti-theft devices or advanced safety systems.
• Group or Alumni Association Discounts: Some insurers partner with colleges or professional organizations to offer discounts.

Review Annually

Major life changes–marriage, a new job, moving–can impact your insurance needs. Schedule an annual insurance review with Richard B. Ryon Insurance to make sure your coverage still aligns with your circumstances. Rates and policy offerings change over time, so regular check-ups can help you save money.

Why Work with Richard B. Ryon Insurance?

At Richard B. Ryon Insurance, we understand that new college graduates face unique challenges when securing insurance. Our licensed agents in Pennsylvania can help protect your future by:

• Explaining complex policy terms in plain English.
• Comparing top carriers to help you find the best value.
• Identifying applicable discounts.
• Reviewing your coverage each year as your life changes.

If you have any questions or need personalized guidance, contact Richard B. Ryon Insurance today. We’re here to help you transition confidently into your post-graduation life.

Conclusion

Insurance might not be the first thing on your mind as you wrap up college, but understanding your options can help you avoid costly surprises. From health coverage to renters insurance, from liability considerations to life protection–each policy “Can help protect” some part of your new independent life. By comparing quotes, asking questions, and working with a knowledgeable agency like Richard B. Ryon Insurance in Pennsylvania, you can make informed choices and focus on building your career and personal goals.

Remember, as a new college grad, you’re laying the foundation for your financial future. Taking the time now to choose the right insurance can help cover you against unexpected setbacks and give you greater peace of mind.