Insurance provides financial protection from accidents and other unexpected events. Different kinds of policies insure against different "risks," which might include a traffic accident that damages your car, an apartment fire that destroys your personal property, or an illness or injury that requires expensive medical treatment.

In general, the insurance needs of people under age 25 are more limited than people who are older. For instance, you may already have some types of coverage through a parent´s or guardian´s policy. However, one type of policy you are almost certain to need is auto insurance.