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Teens and auto insurance

Insurance Tips for Young Adults
Most young people don't think insurance is important--until they need it. Because young adults aren't wallowing in disposable income, insurance often gets lost in the shuffle of rent, gas, and other routine bills. Here's how to protect yourself against the unexpected without spending a fortune.

Most young adults need only three types of insurance coverage: health, renters, and auto. Life insurance is another type of policy to consider if you have financial dependents or own a business.

Your insurance needs change as you grow older. Owning a business, getting married, finding a new job, and becoming a parent are all events that call for a fresh look at your insurance coverage.

First, investigate any current coverage you may have. Your employer may offer insurance benefits. If you're a financial dependent, you still may be covered by your parents' policies. Check with your insurance agent to learn more about these policies and to make sure the existing coverage is adequate.

If you must purchase insurance on your own, follow these money-saving tips:

* If you can't get health insurance through your employer, purchase it through a group, such as an alumni association or trade organization.

* Raise your deductibles. Each visit to the doctor or trip to the repair shop will cost more, but you'll save on the overall premium. Be careful not to raise deductibles higher than you can afford, though. If a $500 bill could wipe out your monthly budget, go lower. And in the meantime, build your financial reserves by regular savings at [name credit union].

* Call at least three insurance agents. You'll find quotes hundreds of dollars apart for the same coverage.

* Choose your vehicle with insurance in mind. Some vehicles are far more expensive to insure than others. Check with your agent and find out what the premium will be before you buy.

* Buy only the coverage that you need and don't get talked into unnecessary add-ons. For example, if your car is worth $1,000 or less, drop collision and comprehensive policies.

* Take advantage of every discount you're entitled to, including those available for good students and safe drivers.