As school terms end and colleges graduate a new generation of adults entering the world of work, finance, and consumerism, it’s time to introduce one of the basic aspects of finance: insurance. Entering the workforce entails the acquisition of a vehicle to drive and a place to live. Other things will follow shortly, but these can be discussed later.
The first thing to do is to choose an insurance agent and insurance agency. Research agents by asking friends, family, and individuals at work their opinions. Often, if you’ve moved to a new area, these are your best sources for referral. Call the Better Business Bureau about agents to determine their financial reputation too. Once you’ve narrowed the field of agents down to two or three, call or visit them to determine how you’ll get along. Ask questions about their knowledge of insurance, their training, and their experience. Are they the kind of person you could call and trust when you’ve totaled your car? Can you trust their advice?
A car, whether it be new, used, or extremely used, requires insurance. Before purchasing a car, check out what it’s going to cost to insure that car. All 50 states require that drivers carry car insurance. Limits of liability – that is, your responsibility for injury to others and their property – vary from state to state, and your insurance agent will know about this.
An apartment, house, or condominium – somewhere to live is the next thing you’ll want to insure. Even though your furniture comes from the Salvation Army, you still might have a great audio system and a state-of-the-art computer that you would like to protect. Then, what happens if your girlfriend trips on the ratty rug and breaks her leg? Who pays for that? Your insurance agent can help with that.
Then, even though you’re in your 20s and have never been sick for more than a week, there’s health insurance and even disability insurance. You can acquire these through your employer, but a competent insurance agent can advise you about these when you’re offered a job.
As you go along in life, an insurance agent can be a valuable portion of your financial team.