I Lost My Job Does It Affect My Insurance?

Getting laid off not only means your stress level gets kicked up a notch while you try to figure out how to replace the valuable income you lost, but it also means that you need to reassess your insurance.

Where does your health insurance come from? Do you still need the same level of auto insurance if you're not using your car to go to work? Should you get less coverage to save money?

Health Insurance

If you're like most American workers, you get your health coverage through your employer. When you and your employer part ways, that doesn't necessarily mean your health coverage is terminated too. If you get a severance package, continued benefits as well as continued salary could be part of the picture.

But if you are still unemployed at the end of your severance package, you might want to look into COBRA. It's a program that helps workers bridge the health insurance gap between jobs. It typically helps provide you with temporary health insurance at the same rate your employer would have paid. Which means you're probably getting a discounted group rate, but it still will likely be higher than what you had paid as an employee.

Auto Insurance

Even if you're not driving your car to work anymore, you still need to have auto insurance according to most state laws. However, you can consider tweaking your coverage limits to reflect your new driving situation. For instance, if your car is just sitting in the driveway, you might consider raising your Collision or Comprehensive deductibles or changing that coverage. But, if you do start driving again, remember to consider changing your deductibles back. And the additional bells and whistles like towing and labor, rental reimbursement or sound system coverage might be something to think about as well.

Home Insurance

If you lose your job, chances are – you'll want to have the same coverage as you did when you had your job. After all, you've still got the same assets and family members to protect. Without a steady income, you'll probably need this kind of coverage now more than ever in case something did happen. What you can do to cut insurance costs is look at moving all your insurance policies to one company. You'll get the benefit of big multi-policy discounts — sometimes up to 20%. In fact, people who switched to Allstate found themselves saving hundreds on auto and home insurance — you can find out how much you could save by starting a quote.