Welcome to Adulting! Now Let’s Talk Insurance (Don’t Worry, We’ll Keep It Simple)
Congrats! Whether you've just graduated, rented your first apartment, adopted a pet, or bought a car, you're officially in the adulting phase. And while insurance might not be the most exciting topic, getting the right coverage now can save you from major headaches (and bills) later. Let’s break down what you actually need—and what you can probably skip for now.
1. Renter’s Insurance (Must-Have!)
What it is: Renter’s insurance protects your stuff (laptop, clothes, furniture, etc.) from disasters like theft, fire, or water damage. It also covers liability if someone gets injured at your place.
Why you need it:
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Your landlord's insurance only covers the building, not your belongings.
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It’s cheap (as low as $10–$20/month!).
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It covers things like stolen electronics, fire damage, and accidents involving guests.
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Some landlords require it before you can even sign a lease.
💡 Pro Tip: If you're renting a furnished place, you may need less coverage for furniture but still want protection for your personal stuff.
2. Health Insurance (Absolutely Yes!)
What it is: Health insurance covers medical expenses like doctor visits, hospital stays, and prescriptions.
Why you need it:
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You can stay on your parents’ plan until you’re 26—take advantage if you can!
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If that’s not an option, check the Health Insurance Marketplace or see if your employer offers coverage.
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Medical bills are crazy expensive, and one accident can wipe out your savings.
💡 Pro Tip: Even if you're healthy, don’t skip it. A random ER visit can cost thousands without insurance.
3. Car Insurance (If You Drive, It’s the Law)
What it is: Car insurance covers accidents, theft, and damage to your vehicle.
Why you need it:
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It’s legally required in most states.
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Covers damages to your car and others, plus medical bills if there’s an accident.
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Even if your car is older, you still need at least liability coverage.
💡 Pro Tip: If your car isn’t worth much, you might not need full coverage. Liability might be enough.
4. Life Insurance (Probably Not Yet)
What it is: Life insurance provides financial support to your loved ones if you pass away unexpectedly.
Why you probably don’t need it yet:
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If you don’t have dependents (kids, spouse, or anyone relying on your income), life insurance isn’t a priority right now.
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It’s cheaper when you’re young, but you can wait until you have more financial obligations.
💡 Pro Tip: Consider it later when you start a family or buy a house.
5. Disability Insurance (Worth Considering)
What it is: Disability insurance replaces your income if you can’t work due to injury or illness.
Why it’s worth a look:
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If you don’t have a financial safety net, this can be a lifesaver.
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Some employers offer it, so check if it’s an option at your job.
💡 Pro Tip: If your job is physically demanding, this is especially important.
6. Umbrella Insurance (For Extra Protection)
What it is: Extra liability coverage that goes beyond what renter’s or car insurance covers.
Why you might want it:
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If you have significant assets or want extra legal protection.
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It helps in situations where you could be sued for more than your basic policies cover.
💡 Pro Tip: This isn’t essential for most young adults but could be a smart move if you have a high-risk job or own valuable property.
7. Pet Insurance (If You Have a Furry Friend)
What it is: Pet insurance helps cover unexpected vet bills.
Why it’s worth considering:
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Vet bills can get expensive, especially for accidents or ongoing conditions.
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It’s usually cheaper when you get it while your pet is young and healthy.
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If you don’t have an emergency fund for pet care, it can be a lifesaver.
💡 Pro Tip: Some breeds are prone to health issues—if that’s your pet, insurance could save you a lot down the line.
The Bottom Line
✅ Get renter’s insurance, health insurance, and car insurance if you drive.
✅ Consider disability insurance if you don’t have a financial cushion or have a physically demanding job. ✅ Look into umbrella insurance if you have major assets or legal risks.
✅ Pet insurance is a good move for young pets or expensive breeds.
❌ You probably don’t need life insurance just yet—wait until you have dependents.
Need help figuring it all out? A Wells Insurance agent can walk you through your options and find the best coverage for your situation. Reach out anytime—we’re here to help make insurance simple and stress-free!
