Insurance Basics

You probably noticed that you need to pay your car insurance each month, which is usually the most a college student needs to worry about. However, as you get closer to the graduation date, there are several other types that can become important!

Car Insurance

If you drive a car, you MUST have car insurance by law. This is why it is the only type of insurance you’re forced to pay for directly through the game, with a bill that comes in each month. There are a few things your car insurance covers:

• Liability Coverage – the most basic type of car insurance. This covers damage you do to other drives or property, but does not cover damage done to you.
• Personal Injury – the most common addition, this will also cover your medical bills in case of a crash.
• Collision Coverage – this covers your car’s repair costs in an accident, even if it was your fault.
• Uninsured Protection – normally if you got into an accident caused by someone else, their Liability Coverage would cover your damage. But if you get hit by an uninsured driver, this would cover you.

Property Insurance

Property Insurance covers your house and property in it. Homeowner’s insurance is a big one, which covers the structure and the stuff, but renters can also take out Renter’s Insurance to cover just their stuff in case of fires or break-ins.

Health Insurance

Health insurance covers expenses, doctor visits, and medication in case you get sick. For this game, assume that you are still covered by your parent’s health insurance. You can still be covered by your parent’s health insurance until you are 26 years old (but your parents are probably paying higher premiums for it).

Life Insurance

Life Insurance pays out only if you die, usually to your spouse our children. There are also some types of life insurance that work a bit like a retirement account.

Now that you know a bit more about insurance, close this window to continue the game!

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