More than one in ten students have no home insurance, primarily because they’re too expensive, according to a survey conducted among users of StuderendeOnline.dk.
This can have significant financial consequences, says insurance consultant Riccardo Krogh Pescatori.
Some may consider insurance companies money-hungry corporations out to ruin your personal finances. Regardless whether you consider yourself one of these people, your personal finances won’t be secure unless you have insurance. A poll conducted among 60 users of StuderendeOnline.dk shows that 12% have no home insurance. Riccardo Krogh Pescatori, consultant with Insurance and Pension, is not surprised by this figure and compares it to a survey conducted by “Forsikringsoplysningen”, an organization that provides information and guidance on insurance.
“On a national level, about 10-12% of the population has no insurance. If you look at the younger part of the population, that number increases. If you look exclusively at the 21–24-year-olds, then about 1 in 3 have no home insurance, and the situation is worst for those living in residence halls, where about 60% have no insurance,” he says.
Deliberately opting out of insurance
The high number of young adults with no insurance can partly be chalked up to forgetfulness, but also a lack of awareness that they’re no longer covered by their parents’ home insurance. However, the poll of StuderendeOnline.dk users reveals ,that over 80% of those without insurance deliberately opted out due to high prices.
“It’s reassuring that not having insurance is a deliberate student choice rather than a consequence of a lack of knowledge, but I still find it concerning,” says Riccardo Krogh Pescatori.
As a student, you can find home insurances for less than 200 kr. Per month – and perhaps even for free, if you’ve in the right trade union.
Long-term consequences
Not having insurance can have immediate consequences, such as if you experience a burglary or damage your new bicycle. Even though It might seem unlikely that it should happen to you, but it can turn into a very expensive affair if misfortune strikes.
“You’re gambling with your finances and your future if you have no home insurance. It’s not like you can sign up for insurance after the damage has been done,” says Riccardo Krogh Pescatori. Without home insurance, you also have no liability insurance. Even if you’re fine with the risk of losing your belongings, lacking liability insurance can have long-lasting consequences if you cause damage to others.
“If you crash into someone on your , causing permanent injury, it can become a very costly affair with no insurance,” says Riccardo Krogh Pescatori.
Insurance overview
The survey of StuderendeOnline.dk users shows that better information and lower prices will get more people to sign up for insurance. A tool has actually been developed to highlight this problem and make it easier for you to find the exact insurance that suits your needs. The Danish Consumer Council has collaborated with the advocacy group “Forsikring & Pension” (“Insurance & Pension”) and created “The Insurance Guide”, which can give you an overview of the different insurances and lets you compare their different prices. You can check it out here.
But in the end, it might be worth considering whether insurance is the right place to save on expenses.