Todd Miller is apprehensive about graduating from The University of Memphis next month.
However, he’s not apprehensive because the job market is challenging, not because his carefree college lifestyle is ending and not because he finally has to get a real job.
Miller is apprehensive because, as of graduation day, he will lose his insurance.
“Having health insurance and car insurance is something I guess I’ve always taken for granted,” Miller said. “I’m not sure what kind of plan to sign up for now or how I’m going to pay for it.”
Many college students on their parents’ insurance policies will lose coverage after they graduate May 11, or after their parents decide that a college degree means they need to pay for everything themselves.
Car insurance can be expensive, especially for young adults graduating from college.
The average cost of car insurance for a single driver in Tennessee is $592.33 a year, according to the National Association of Insurance Commissioners’ Web site.
The Better Business Bureau’s Web site offers tips for getting car insurance.
One of the tips they give is to comparison shop. Insurance rates can vary greatly from company to company, so they suggest getting at least three different quotes.
Another way to lower rates is to ask for higher deductibles. Asking for a deductible of $500 instead of $200 can lower a driver’s rates anywhere from 15 to 30 percent, according to the BBB.
Not everyone needs collision coverage, especially if his or her car doesn’t hold much value. Refer to the Kelly Blue Book, www.kbb.com, to find out how much the car is worth before deciding on collision coverage.
Insurance companies also give discounts for clean driving records, low-mileage drivers, rural drivers and cars equipped with seat belts, air bags and anti-lock brakes.
Health insurance is a factor with which graduates must also deal.
If a student is fortunate enough to have a job with health benefits lined up immediately after graduating, then more power to him or her.
However, in reality, more students are probably shrugging their shoulders when asked the perpetual question, ‘What are you going to do with your degree?’ Shopping around for different packages can save graduates a lot of money on health insurance. Some companies, like Blue Cross Blue Shield of Tennessee, even have temporary policies for graduates or those who are between jobs.
Ruby Spain, an insurance agent with American National Property and Casualty, said students already registered under their parents’ policies could just register for their own policy with the same carrier and not have to change companies, as long as they don’t move out of the state.
Graduation is a time for celebration, a time for students to be proud of their accomplishments, but, for some, it’s just the beginning of the ‘real world.’
“I’m definitely feeling the pressure of graduation,” said Anne Barrow, a Rhodes College student who is graduating in May. “Finding my own insurance policy is just one more thing I have to do before May. It’s all such a headache. Sometimes I wish I could just stay in school forever.”
