As a college student transitions from the rhythm of classes and exams into the professional world, a lot can change with how they handle insurance. In some circumstances, a student might not even own a car or rent independently during their time at school. Others will have a full range of insurance coverage already. Regardless, choosing insurance for young professionals can be confusing for some, so let’s examine all the important coverage options they should consider as they get their first professional job.
Auto Insurance
Everyone needs liability auto insurance if they drive or own a car; it’s the law. Chances are most people have encountered this need as they learned to drive in high school. However, if a student has been relying on public transportation while attending college, then they probably haven’t thought about auto insurance in a while. Other students have been relying on that clunker to get them to and from class, and all they’ve ever wanted or could afford on it was liability. As they net that better paying job, it’s natural to want to upgrade to a new or better car. With that nicer vehicle comes the need for better coverage. Now is the time to make the upgrade to something better than just liability. Additional coverage options like comprehensive coverage, collision coverage or GAP Coverage.
Home / Condo / Renters Insurance
The transition to a new job usually means signing a new leaser or even buying a new home / condo depending on your income. Up next let’s break down some housing insurance for young professionals.
Renters Insurance
Many students end up renting in the later semesters of college, but many don’t realize how important renters insurance can be at that time. That said, a lot of college apartments aren’t filled with a ton of valuables anyway. That all changes when a grad gets their first apartment out of college. New furniture, electronics, etc. makes renters an important coverage for those furnishing their first or new apartment. As they accumulate new and nicer valuables, they’ll want to protect them properly with a renters policy. Best of all, renters insurance is very affordable and won’t put a strain on the sometimes tight budget that comes with a new job.
Condo Insurance
Condos become a common investment for some professionals. While there are many advantages to condo ownership, there is an insurance gap that needs to be covered as well. The association insurance usually covers the building, but anything in the interior, commonly described as “dry wall in,” is the owner’s responsibility. Condo insurance bridges this coverage gap, but it’s something that a new owner might not immediately think about. With this important insurance for young professionals, they can make their condo feel like home without worry.
Home Insurance
Finally, purchasing a home can be one of the biggest investments of a lifetime. As anyone starts that process, quality homeowners insurance is nothing to skimp on. Homeowners doesn’t just impact issues with your home either. It can protect you in liability claims that happen on your property. As a young professional grows older, homeowners insurance becomes one of the most important coverage options anyone can get.
Umbrella Insurance
Insurance claims and lawsuits have changed dramatically over the years. Soaring litigation costs can put any liable party in a potentially life altering situation. Often, it is wise to maximize your insurance coverage to avoid bankruptcy or the loss of significant assets. This is an especially important for young professionals, as they are just beginning to be financially secure. When the coverage amounts of auto or homeowners run out in a claim, umbrella insurance steps into further protect the insured. The thing is, most people don’t think they need umbrella coverage because they already have primary insurance. However, you can get an extreme amount of extra coverage for only a minimal monthly payment. Umbrella is a wise investment for some right out of college.
Life Insurance
Aside from umbrella, most young people decide to pass on life insurance even after they can afford it. However, it is an important part of any insurance portfolio, even when you’re young. Life insurance is super affordable when you’re young, especially when you choose term life. Funeral costs and other obligations can impact people of any age, and for only a few dollars a month, these worries can be lessened with life insurance coverage.
Get The Best Insurance For Young Professionals
If you’re a new grad or even just getting established in a new job, make sure you have all the necessary coverage from Square State Insurance. Chances are we can work out bundling deals to maximize your savings and get you all the coverage you need. When it comes to insurance for young professionals, finding proper coverage is something you’ll want to take care of right away.
Image one courtesy of Wikimedia Commons.
