Do you know what insurance “copays” and “deductibles” are? A survey by the National Association of Insurance Commissioners (NAIC) found out that many college age young adults had difficult defining those and other basic insurance terms.
The survey found that only 21% of members of Generation Z had renters’ insurance while 35% had protection plans for their mobile phones. Only 19% knew what “out-of-network” meant; only 27% could define “deductible” and 29% knew the definition of “copay.”
Generation Z, also known as Gen Z or Zoomers, refers to people born from 1997 to 2012. Some Gen Zers are still in high school while others are headed off to college or have just started their professional careers.
“Out-of-network” refers to doctors or facilities outside your health insurance HMO or PPO network which may result in you being charged the full price of a service or higher payment. “Deductible” is the amount you need to satisfy before the insurance company will begin to cover the cost of your care. “Copay” is a designated amount that is due to the provider when you obtain services.
In some ways, it’s understandable that these young adults may not know a lot about insurance since they may have had little experience purchasing policies. Many may still be on their parents’ health insurance. They may still live at home, and perhaps never owned a car.
As they grow into their late teenage years and 20s, they’ll need to learn these terms and get a basic understanding of insurance to protect their financial future.
Zoomers heading off to college or getting an apartment may want to consider purchasing a renters’ insurance policy. Many may be unaware that a landlord’s insurance policy will not cover the renter’s personal items, such as clothing, furniture, televisions, cookware, laptops and other belongings if they are lost in a fire, storm or are stolen. Landlord policies only cover the building structure and other items belonging to the landlord.
A renters’ policy can shield you from liability for injury to others or damage to the rental property because of a fire, smoke or explosion.
Renters’ insurance policies often aren’t expensive. Premiums may be $25 per month or less, depending on where you live and how much coverage you purchase. Higher amounts of coverage would cost more.
Students living in a dorm room may be covered under the homeowners’ insurance policy of their parents. Be sure to check with your insurance agent to understand your limitations and any additional coverage you may need. If something is unclear, ask questions.
If you still need help with your insurance, you may call the Department of Insurance to speak to a consumer expert at 855-408-1212 weekdays from 8 a.m. to 5 p.m. You may also visit our webpage at www.ncdoi.gov.