High school graduation is one of the first steps into adulthood. Whether you're off to college or starting your career, the transition into adulthood can be overwhelming. Few high school graduates are equipped to make informed decisions about important decisions — like what insurance policy to get.
High school graduation is one of the first steps into adulthood. Whether you're off to college or starting your career, the transition into adulthood can be overwhelming. Few high school graduates are equipped to make informed decisions about important decisions — like what insurance policy to get. Fortunately, new grads don't need to become experts in car insurance or renters insurance before heading off to college. We'll break down everything you need to know about insurance including:
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The insurance basics: what it is and why you need it
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Types of insurance policies new high school grads should consider
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How to choose an insurance policy
The Insurance Basics
What is insurance, really? Insurance protects our assets and manages potential risks. Insurance is a contract between a policyholder - that's you! - and an insurance company. You pay premiums to the insurance company in exchange for financial protection against specific risks. It acts as a safety net, providing financial support in times of need.
Why do you need insurance coverage? Insurance coverage offers several important benefits:
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Financial Protection: Insurance acts as a safety net, preventing unexpected expenses - like a minor kitchen fire in your college apartment - from derailing your financial stability. Say you and your roommates start a minor kitchen fire while making snacks for an all-night study session. With insurance, you don't have to bear the full burden of unexpected accidents.
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Peace of Mind: Knowing you have insurance coverage can bring peace of mind. You already have a lot to worry about as a young adult - like your first year of college. Insurance allows you to focus on your personal and professional growth.
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Compliance with Legal Requirements: Certain types of insurance, like auto insurance, are legally mandated in many jurisdictions, including Maryland and Pennsylvania. Understanding and complying with these requirements helps you avoid legal trouble and potential fines.
Types of Insurance Policies New High School Grads Should Consider
Researching the best insurance policy for you can be overwhelming-especially on top of being a new college student or full-time worker. One of the biggest benefits of using an independent agency like Keller-Brown Insurance Services is that we do all that heavy lifting, giving you easy-to-understand options.
Here are a few insurance policies we can help with:
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Auto Insurance: If you own a car or plan to buy one, auto insurance is crucial. It protects you financially in case of accidents, damages, or theft. Research different coverage options, compare rates from multiple providers, and consider factors such as liability coverage, deductibles, and collision/comprehensive coverage. Still on your parents' policy? Find out the right time to get your own auto policy.
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Renter's Insurance: If you're moving away from home and renting a place, it's essential to protect your personal belongings. Renter's insurance covers loss or damage to your possessions due to theft, fire, or other unforeseen circumstances. Additionally, it may provide liability coverage if someone gets injured on your property. Keep in mind, you may have coverage through your parents' homeowners' insurance, but this coverage is limited and runs out once you reach a certain age.
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Life Insurance: While life insurance may not be a priority at this stage, it's worth considering, especially if you have dependents of your own or cosigned student loans. Life insurance provides financial support to your loved ones if the unthinkable happens. Most importantly, life insurance is cheaper when you're younger, so now is a great time to secure a low-cost policy.
Need help navigating employer-sponsored health coverage, renter's insurance on an apartment, or other essential policies? Contact an agent for personalized guidance.
We take pride in empowering customers to protect their financial future. We'd be happy to walk you through the process of buying insurance for your very first car or finding an affordable life insurance policy to protect your cosigners.
How to Choose an Insurance Policy
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Research and Compare: Don't just settle for the cheapest insurance policy you come across. Research different carriers, compare coverage options, and read customer reviews. This will help you find the best coverage at the most reasonable price.
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Understand Policy Details: Before committing to any policy, review the terms and conditions. Understand what's covered, the extent of coverage, deductibles, and any limitations or exclusions. Get familiar with your payment plan to understand your premiums. Some online quotes show you discounts for their pay-in-full plans - which are typically cheaper than monthly plans. We know insurance can be complicated, so don't hesitate to ask questions to your insurance agent if you need clarification.
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Evaluate Your Needs: As a young adult, your insurance needs may vary depending on your circumstances. While some young adults may be able to stay on their parents' auto insurance while away at college, others may not. Assess your lifestyle, assets, and potential risks to determine the types and amount of coverage you require.
Why insurance agents provide vital support: Insurance is extremely complex. Whether you get advice from us or you go to a different agency, it's essential that you have someone on your side who:
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Knows your unique budget and needs
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Understands the complexities of the insurance industry
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Can identify the best insurance coverage for your needs
Protect Your Future with Insurance
As independent insurance agents, we have access to policies that you won't find online. Explore different types of insurance and find the best policy for your family with help from our agents. Get in touch today.