We thought it might be helpful to share some insurance information for young adults. Below you will find a guide to the types of insurance that you should consider when you are starting this new adventure called adulthood. Welcome!
If you have a car, you likely have some experience with Auto Insurance. Our goal is to help you understand your coverage better so, keep reading! There are two main parts to your car insurance policy and we want to take a moment to discuss each one. Personal auto insurance is a policy that provides coverage for liability and physical damage coverage.
If you have a newer vehicle, it is a good idea to consider an Agreed Value policy. A policy with Agreed Value means that the value of your car is determined before a loss and in the event of an accident; you are guaranteed a check for that amount without deprecation during the policy year.
When involved in an accident, if safe, take photos of the scene, the exact spots where the cars hit, the license plate of the other car, and snap a photo of the other driver’s license and insurance card. Ask for a phone number for the other vehicle’s owner. If there are ANY witnesses that were not passengers in either car, get their name and phone number for an insurance statement. A witness can make a huge difference determining fault.
Whether you have been living as a dependent of your parents or always had a partner handle your insurance (at home, in a college dorm or in a rental apartment), when you are heading out on your own, you should consider purchasing a homeowner’s policy in order to protect your possessions. There are a couple of different types depending on if you are renting or buying a home.
Renters Insurance is something you will need to purchase if you are renting an apartment or house after graduation. Renters Insurance will cover your personal belongings in the event of a fire, burglary or other weather-related emergency. Obtaining renters insurance means that if there is a covered event, such as a burst pipe or a burglary, your insurance will cover the cost to replace your damaged contents, assuming the claim is over your chosen deductible.
Renters insurance also provides some Loss of Use coverage which means that if you need to live elsewhere after a covered loss, your insurance will pay for it.
It is a good idea to create an inventory of all of the items you own and the approximate value of each item. This will help in two ways; one it will help you determine the amount of coverage you need; and two it will help should you need to file a claim after a loss. If this is unrealistic, take a video with your smart phone of the inside of your home, open the drawers, cabinets, and closets, and film everything so that you have a permanent record.
Homeowners Insurance is a form of property insurance that helps to pay for damage to your home and possessions in the event of a covered loss, as well as offering liability coverage for certain injuries or property damage you negligently cause to other people. Like renters’ insurance, this coverage offers coverage for personal belongings damaged in the event of a fire, theft and some weather related emergencies, as well as providing protection for damages that happen to your home or property because of a covered loss. When it comes to purchasing your first home, it’s a wise choice to work with a local insurance agency.
Liability Insurance offers you protection in the event that you negligently cause damage to someone else’s property, or someone is injured, and you are responsible for the damages. While both your auto insurance and your renter’s insurance will offer some degree of liability coverage, the amount may not be enough. We can help you explore your options so that you can decide whether a standalone liability policy might be a good fit for you.
If you have adult children who are moving on to a new phase of life, now is a good time to have a conversation with you insurance agency so that updates can be made to your current policies.
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This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.