As a young person, you may feel invincible – and you might think you can skate by without insuring your assets or your health. But thinking like that can be a costly mistake.
When the healthcare reform bill takes full effect in 2014, everyone will have to maintain health insurance coverage. Until then – unless you live in Massachusetts – no one will force you to buy it. But going without health insurance coverage is a dangerous gamble: Just one serious illness or accident can rack up thousands of dollars in medical bills. You could spend years paying those bills off, at a time when you should be building a strong financial foundation.
You should think the same way about insuring property. Even if you live in a state that doesn't mandate auto insurance coverage – and most do – a single accident can put your car out of commission or result in substantial medical bills.
Renter's insurance, meanwhile, will protect all of your possessions in the event of a fire or theft. Some renter's insurance plans will even cover items like laptops even when they aren't in your apartment.
For young people – health, auto and renter's insurance isn't just a smart idea – it's a must-have.