Let me share a story with you about a friend of mine. Let’s call him “Brandon.” Recently, Brandon bought a new car but opted out of certain coverages like gap insurance to save a little money on his monthly premium.
Unfortunately, he got into an accident and his car was deemed a total loss, less than a year after he bought it. He owed more than the car was worth and had to actually pay money to get out of his loan. Had Brandon been properly insured, his coverage would have helped him out so that he could have been less financially impacted.
Moral of the story? Being properly insured is something that everyone—even young adults—should think about. Here are three reasons why:
1. Peace of mind
No one ever wants anything bad to happen to them. However, sometimes not-so-great things come when we are least expecting it. The right amount of insurance coverage can help get you through tough times.
For me, the peace of mind that insurance brings helps me worrying less about unexpected large bills.
You may say to yourself, “I’m young … what could I possibly have to insure at this point in my life?”
The answer is “a lot.” You have yourself (think liability insurance for when you drive, life, health, etc.), your car if you have one, your home or apartment–even your belongings that you’ve worked hard for, like your electronics, clothing, furniture and more.
Just because you can’t “see” the benefits of insurance right away like you can a tangible object, if you gamble and go without insurance, you could cost yourself more in the long run. By paying smaller amounts now through your insurance premium, you protect yourself from higher costs that may happen in the future. Think of it as a way to budget for the tougher times in life.
When you buy insurance, you’re also getting an advocate to help you through a trying time.
An insurance company may be able to help you get the money related to an accident, find a mechanic, get through a travel problem, and more. Insurance professionals are experts in helping people through difficult situations.
Insurance is there to help you manage whatever life may throw at you in the future. Think of it as a way to budget for the tougher times that inevitably find us all at certain times.