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Imagine
budgeting and saving your money for years, and you
finally have enough savings for a down payment for a car
and income for monthly payments. You drive your car for
a week, and one day as you’re sitting at a stoplight,
another car plows into you from behind. Thankfully,
you’re okay, but your car looks like an accordion. Not
to mention, you still have two years to make car
payments. You realize the person who hit you is another
student in your school. You know they can’t afford to
pay for your car. So, what do you do?
No matter how
old or new a car may be, very few people can afford to
replace or repair a wrecked car with money from their
own pocket. No matter how careful we may be, accidents
happen, and that’s why the law requires you to
purchase insurance if you own or drive a car.
Insurance is the
number one way to keep yourself covered for the risks
you take every day in life. These risks can be anything
from driving a car and renting an apartment to wearing
expensive jewelry or going skiing on the weekend.
Insurance can protect you from things that are outside
of your control, like fire, floods, theft, accidents,
and negligence. This section will focus on the example
of car insurance, since it is typically the first type
of insurance you will purchase.
Did
you know that most major car accidents happen within 3
miles of a driver’s home? So before you get behind the
wheel, take a walk around the block, and figure out how
to manage risk, determine what insurance you need, and
navigate your way through the terms and conditions of
typical insurance policies.
Risk
Management
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