- Nobody actually "likes" paying for insurance, but it's sure good to have, if you ever need to file a claim...
Insurance can be a deeply intimidating topic for people, a signal of adult responsibility, but also overwhelming and confusing – and what’s more, there seems to be a new type of insurance every day. With so many policies to choose from, what types do you really need and which are excessive, especially for young people just starting out?
Auto insurance is often the first policy that young people are independently responsible for because it’s typically illegal to operate a car without at least a basic liability policy. In most cases, though, you’ll want a more comprehensive policy that will allow you to afford a replacement vehicle if your car is totaled and which will cover medical care in the event of injury.
Only a small proportion of landlords require their tenants to have renters insurance policies, but even if yours doesn’t call for one, you should ensure you have one anyway. Why? Renters insurance protects your possessions, provides financial support if you’re displaced due to property damage, and, depending on the policy, may even cover personal injury issues if, for example, a visitor is injured by your pet or falls and gets hurt in your rental unit.
America is known for the high cost of insurance so, although the ACA has been modified to essentially eliminate the penalty for not having a health insurance policy, you should still make sure you’re consistently insured. Without health insurance, you may not be able to afford even basic care like antibiotics for an infection or an x-ray if you fall and get hurt. Meanwhile, if you fall seriously ill, you could wind up with devastating medical debt if you don’t have insurance.
If you ask professionals about the legal status of your pets, you may learn that they’re classed as luxury possessions, and while that may be technically true, most people don’t feel that way about their animals. Instead, pets are a treasured part of the family, and that’s why you should take out an insurance policy to cover your pets’ medical emergencies. Relatively affordable when taken out while your animal is young, pet insurance can ensure you never have to delay or compromise on taking care of your animal.
Policies You Don’t Need
Are there types of insurance policies you don’t need? While all insurance has its benefits, specifically if you have the money to spare, certain types are dispensable for young people who are still establishing themselves.
For example, most young people can’t afford the added expense of life insurance, even though life insurance can provide an important financial safety net for your family – or, to put it another way, life insurance is beneficial, but there’s a time to apply for it, and it’s usually not until you’re more established in your life.
Another policy you may be able to dispense with early in life is disability insurance. That’s not because young people don’t become disabled. Rather, it’s often too expensive to take out meaningful coverage when you’re young and not making a lot of money. However, for those with more disposable income, it’s a desirable policy to have.
Insurance policies can seem complicated and overwhelming when you’re first exploring what’s available to you, but the good news is that you typically won’t be applying for multiple policies at once.
As long as you tackle each policy need as it comes, you’ll be able to keep things manageable and navigate the market to ensure you have exactly what you need when you need it.