What insurance do I actually need?
<div class="user-question">Hi Frich! I’m in my early career and recently moved into my own apartment for the first time. This required me to get renters insurance, which I didn’t even know existed before. This made me think - what other insurance do I need to get? What’s a must have and what’s a nice to have?</div>
Hey there! Moving into your first apartment is a huge milestone, CONGRATS! But don't worry - you’re not alone in wondering what other types of insurance you actually need, especially when you're just starting out and money’s tight. Let's break down the must-haves, the nice-to-haves, and how to protect yourself without blowing your budget. Let's dive in!
Don't have time for the whole thing? Here's a quick summary🔥
<div class="frich-tip">Don't have renter's insurance yet? Our fav here.</div>
<div class="frich-tip">Looking for comprehensive travel insurance? Check out Faye.</div>
<div class="frich-tip">Need pet insurance? Our favorite here.</div>
<div class="frich-tip">Need to insure your car? Compare rates here.</div>
Must-Have #1: Health Insurance
Health insurance might not be the most thrilling line item in your budget, but it’s non-negotiable. One wrong move and you could be staring down a bill that wipes out your savings. Not fun. So yeah, it’s a little boring, but your future self will thank you for being responsible.
Why it matters:
- Medical debt is the leading cause of personal bankruptcy in the U.S.
<div class="frich-tip">Frich tip: Struggling to keep up with deb? Compare top debt consolidation offers here.</div>
- Accidents and illnesses can happen to anyone, and health insurance is your financial shield.
Where to look:
- Still under 26? See if you can stay on your parent’s plan.
- Have a job? Your employer might offer coverage at a reduced cost.
- Self-employed or unemployed? Use Healthcare.gov to compare plans. If you earn around $40K/year, you may qualify for premium tax credits that lower your monthly cost.
Must-Have #2: Auto Insurance (if you drive)
Texas law requires it, but even beyond legality, car insurance is a must for financial protection. There are two main parts - let’s get into it!
Liability insurance
This covers the costs if you cause an accident and damage someone else’s car, property, or cause injuries. It’s their stuff and their medical bills that get covered, not yours.
There are two main parts:
- Bodily Injury Liability: Pays for medical expenses, lost wages, or even legal fees if someone sues you after an accident.
- Property Damage Liability: Covers repairs to the other person’s car or any other property you damage (like a mailbox, fence, or storefront).
Comprehensive & collision Coverage (optional, but super smart in many cases)
While liability covers other people’s stuff, comprehensive and collision protect your car. These aren’t required by law, but if your car is new, financed, or simply valuable to you, they’re highly recommended.
Covers damage to your car not caused by a collision. Think: hail damage, theft, flooding.
<div class="frich-tip">Frich tip: Use comparison tools like Insurify to shop rates.</div>
Nice-to-Haves (but worth considering)
1️⃣ Pet Insurance
If you’ve got a pet, you already know: they’re family. And just like humans, pets can have accidents, get sick, and rack up some surprisingly high medical bills. Pet insurance helps cover those unexpected costs, so you don’t have to choose between your wallet and your best friend’s well-being.
Pet insurance isn’t essential for every pet parent, but if your fur baby is high-energy, high-risk, or just your entire emotional support system (same), it can be a life-saver. Literally and financially.
<div class="frich-tip">Frich tip: Companies like Lemonade are popular with pet owners under 30.</div>
2️⃣ Travel Insurance
Before you spend money on a separate travel insurance policy, take a look at your credit cards. Many travel-focused or premium rewards cards offer built-in travel insurance protections for free, as long as you use that card to book your trip.
Here’s what you might already be covered for:
3️⃣ Rental Car Insurance (collision damage waiver)
- Many cards provide secondary or even primary rental car insurance, which covers damage or theft to a rental car.
- You usually must decline the rental agency’s coverage and pay with the card.
- Check if it's primary (better - covers you first) or secondary (kicks in after your personal auto insurance).
<div class="frich-tip">Frich tip: Here are our team's current favorites for premium cards that offer car rental insurance.</div>
4️⃣ Trip Cancellation/Interruption Insurance
Covers non-refundable travel expenses (like flights, hotels, tours) if you need to cancel or cut your trip short due to covered reasons like:
- Illness or injury
- Severe weather
- Jury duty
- Death in the family
Reimbursement amounts can go up to $10,000 per trip, depending on the card.
<div class="frich-tip">Frich tip: Here are our team's current favorites for premium cards that offer travel insurance.</div>
Quick Insurance Checklist
You made a smart move getting renters insurance, and that’s just the beginning. Your landlord’s insurance doesn’t cover your stuff, and some leases require it (yep, it might be hidden in the fine print). It’s one of the cheapest ways to protect everything you own.
The key to insurance isn’t buying everything, it’s buying what makes sense for your life right now.
Start with the essentials:
- Health insurance to protect your body and your bank account
- Auto insurance (if you drive) to stay legal and covered
Then, consider add-ons like pet and travel insurance if they fit your lifestyle.
Found this valuable? Here are some more deep dives from the Frich team 🤝
✅ When Money Is Tight, These 6 Resources Will Help Nearly Everyone
✅ 7 Tiny Money Moves That Feel Really, Really Good
✅ How do I actually build wealth in my 20s?
Just by asking these questions, you’re already ahead of the game. You got this. Insurance doesn’t have to be overwhelming. It just takes a little planning, a few smart tools, and knowing what matters most to you. Protect your health, protect your credit score, protect your future, and keep crushing it.
Best,
Gwyneth
