Adulting 101, Money Money Money

Insurance for Dummies!

Good Morning Everyone! In the times of craziness like this one thing that may not be at the top of the list but should be is insurance. For most new adults it’s a hard topic to think about. So little is known and mom and dad always did for you. Today it’s time to take your insurance into your own hands!

There are four main parts of insurance, Car, home, health, and life. Because most young adults are still on their parents health insurance so today we will focus on the other three!

Part One: Car Insurance

Car insurance for the most part isn’t complicated, its a three part process. One, you want to protect yourself from being sued (liability) when an accident happens and you caused it. This protection comes in tiers based off of how much protection you need. The more you need the higher the tier and the more you pay!

Two, you will most likely want to protect your car. This is the money that goes to fixing your car after the accident. When someone says full coverage, they normally mean car protection too. This can also be opted out of, especially if your car is old and on its last leg. At that point it may be better to junk the poor dear.

And part three, this is protecting YOUR right to sue someone when you are hit. This can be for the physical damage you got from the accident and the mental damage.

Part Two: Renters Insurance

This is a two part system that you want to cover you and pretty much common sense when it comes down to it.

The first part is the protection of your stuff. This is not a level but a random number you can pick. The best way to do it is inventory your stuff and see how much you honestly need to replace it. It doesn’t have to be perfect but you want it to be closer than a guess.

Part two is the part where you are protected from being sued. This is a tier thing and mostly is how much you are at risk. Someone with a dog is at higher risk because the puppy can bite someone and its on you! Or what if he rips the wall paper and the landlord sues! CYA folks.

Part Three: Life Insurance

So a lot of young people opt out of it BUT hear me out. What happens if god forbid you die. It could be a car accident, Covid-19, anything. Can your family afford your college debt? If the answer is no then you need life insurance. It can be any number you choose and, at least at state farm, once you have the insurance and pay for it NOTHING can take it away from you. You are guaranteed for life no matter what gets thrown your way.

So there is your basic insurance make up for our brand new adults! A huge shout out to Adriana Pasquini for helping us with this article and we wish all new adults the best of luck!

Mark Oliver Wizard Goldstein

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