Several experts from GenHERation partner company NFP took the time to share their best insurance practices. According to NFP insurance experts, these are four types of insurance you should have as a young professional: 

1) Car Insurance: Make sure you are covered in case of an accident: 

• Each state has a minimum requirement for liability coverage, but it is not nearly enough to cover everything in the case of an accident. We recommend making sure your property liability limits are between $300K-$500K. It is not that much more cost to you in your monthly premiums, and it will ensure you are covered if you end up in an accident. 
• Select the highest deductible you feel comfortable with. Make sure it is something you can realistically pay if needed, and it will keep your premium payments lower in the long run.
• Make sure you are listed correctly as the driver. Also, check to see if there is a Permissive Use clause in your plan, so if you allow another person to drive your car they can be covered under your insurance. Not all automobile insurance policies cover permissive use and some that do might include only limited coverage.
• If you get in an accident, make sure to call the police so a report is filed. If a report is not filed, the insurance company will assume 50/50 and you will automatically be responsible for half of the damage.
• Before submitting an insurance claim, get an estimate. If the total cost of the repairs is just a little more than the deductible then you are better off paying out of pocket instead of submitting a claim to your insurance. Also, if you file a claim and there is no or little cost, the claim is still on your record and could lead to higher premium costs.
• If your car is damaged, be sure to take it to a reputable car dealership or a shop to ensure you are getting the right services and parts for your car.
• Before adding rental insurance to a car rental, check your insurance to see if it is already included in your plan. Many plans include rental coverage, so save your money and do not buy the additional plan from the rental place.

2) Renter’s Insurance: Whether it is required by your management company or not, you should make sure you are covered if anything were to happen:

• If you are renting an apartment, a lot of places require renter’s insurance and even if they do not, you should have it to make sure you are covered in case anything happens. If you own a home, for the same reasons you should ensure you have homeowners insurance. 
  • Personal Liability Coverage: If someone gets hurt at your home, make sure you are covered. Also, most times this will cover you worldwide were something to happen while you are traveling. 
  • Personal Belongings: If a fire, smoke or water damage affects your belongings, make sure you have enough to replace your things and do not undervalue how much it will cost to replace your furniture, clothes, kitchenware, etc.
  • Loss of Use Coverage: If something happens to your home and you are not able to stay there, where are you going to go? Make sure you have enough to cover hotel costs, etc. should you need it temporarily.

3) Health Insurance: It’s time to start thinking about your health insurance needs for when you select your own plan and are no longer on your parents’ health insurance:

• Health insurance plans fall into two categories. Either group or individual. Group plans are provided by your employer and are usually more comprehensive, while individual plans are negotiated between an individual policyholder and their insurer they are typically more expensive. 
• Both group and individual plans cover a minimum number of essential benefits that is required by law. 
• All health care plans have premiums, or a monthly fee that keeps your policy active; co-pays, or a fixed amount you pay for medical visits; deductibles, the amount you have to pay before your plan begins to cover your expenses; and coinsurance, which specifies what percentage of the total cost of services you pay.
• Many types of health insurance plans exist, so know how and if you are covered in and out-of-network. 

4) Voluntary Benefits: Now that you have health insurance, it is time to think about the other benefits you should utilize to make sure you are covered for anything outside your health plan:

• Life Insurance: It is very inexpensive at this phase of your life to purchase life insurance. Look for permanent life products that you can lock in at a low rate rather than waiting until later when it will be more expensive for you.
• Group Life Insurance: Max this out to make sure your parents and family are covered should anything happen.
• Disability Insurance: Look at your full benefits packet.
• Short-Term Disability: Even if your health expenses are covered through your health plan, if you are not able to work you will need to be covered so you have money to pay your bills.  
• Others to consider:
  • Pet Insurance
  • Accident Insurance 

NFP is a leading insurance broker and consultant that cares deeply about its employees’ and clients’ well-being, and takes pride in its culture of authenticity. NFP’s expertise and scale are only matched by its passion for building lifelong personal relationships. To learn more about opportunities at NFP, visit https://careers.nfp.com/.

Contributors: Christina Kjaeroe & Kimberly Heald