Insurance 101: Introduction to Insurance Coverages (College Edition)

Video-Images-INS101-College-STUDENTPost authored by John Kidd

As I enter my senior year of college, I think back on all of the wonderful opportunities I’ve been fortunate enough to experience: collegiate athletics, clubs and organizations, as well as the life-long friends that I have made during my first three years of college. However, I also get to thinking about what my future will entail when I graduate. Where will I work? Where will I live? Do I need a new car? How will I pay off my college debt? And what about insurance – what kinds do I need? How much does all this cost?

All of a sudden, my mind starts calculating all of the expenses involved, and even though I’m only 21, I can feel the gray hairs emerging from my head. But then I get to thinking, “I’m sure I’m not the only one in this predicament.” Well, hopefully I can answer at least one of the questions mentioned above!

There are many different types of insurance that you might need depending on the type of situation you are in when you graduate. Four types of insurance you should be familiar with are:

  • Homeowners Insurance (if you own your home) – protects an insured’s (that’s you) home along with your personal property (all your possessions) and other structures such as a detached garage or shed. Alternatively, if you don’t purchase your home you still have an option:
  • Renters Insurance (if you rent your home) – protects all of your stuff from fire, theft, or some types of natural disasters like lightning or tornadoes.
  • Auto Insurance – covers liability (the legal stuff), medical payments, and uninsured motorists (someone who doesn’t carry insurance at all).
  • Personal Umbrella – an additional coverage that protects you from perils such as slander and wrongful eviction, along with additional liability coverage. (Additional liability coverage means if you cause an auto accident and you’re sued for more than your auto policy covers, an umbrella policy will help pay the difference).

There are many benefits to the insurance policies mentioned above: peace of mind, protection for your possessions, and income protection – just to name a few. The good news is insurance costs much less than you’d typically think. Even more good news is there’s someone to guide you through the process of figuring out what you need: an independent insurance agent. Reach out to an agent to discuss the details of these policies and ask questions about the types of coverage each one offers.

I hope I’ve helped you realize that there are many “real-life” expenses, and insurance should be one of them. Have a plan for when you graduate, and don’t forget to save a little money too.  You know, just in case you’re hit by a bus and can’t go to work and use that brand new degree you worked so hard for. I know I am very enthusiastic and thrilled about what the future has in store for me! I sure hope you are too!

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