Today’s millennials are in their 20s and 30s – young and healthy. Does this mean that you can skimp on insurance? Not exactly. Insurance is necessary for all ages as things can still happen. If you get sick or injured, you need insurance to help pay the bills. The good news is that insurance rates are lowest when you are young and healthy, so now is the best time to get the coverage you need.

Not sure what types of insurance policies you should focus on? Here are the four most important insurance policies that people in their 20s and 30s should have.

1. Life Insurance

Life insurance isn’t popular among millennials, but it should be. Policies are cheapest when you are in good health. For the cost of a few coffees a month, you can take out a life insurance policy that would provide a death benefit to your beneficiaries. But, that’s not all. Life insurance can also be used as an investment strategy. Whole life insurance premiums build cash value that can be used later in life.

2. Auto Insurance

Millennials pay some of the highest rates for auto insurance, but this isn’t an excuse to cut back on coverage. If you commute to work or enjoy road trips, you run the risk of getting in an accident. Being underinsured could leave you financially strapped. Here are the coverage options to consider:

• Uninsured/underinsured motorist coverage. If your car is hit by an uninsured or underinsured driver, this coverage picks up the costs. Without it, you would have to pay out of pocket.  
• Collision coverage. If you’re in a car accident, collision insurance helps pay for vehicle repairs. If the repairs exceed what your car is worth, the insurance company will cut you a check.
• Bodily injury coverage. If an accident causes harm to others, bodily injury coverage will help pay the medical bills and legal fees. It covers drivers, passengers and pedestrians.  
• Property damage liability coverage. Property damage liability covers damage to other cars as well as property damage. If you hit a fence, this insurance will pay for the damages.

3. Renters Insurance

If you are renting a home or apartment, your landlord’s insurance policy will not cover you if there’s a fire or natural disaster. Renters insurance is affordable and covers things you might not think of, like stolen property. It’s also incredibly cheap, usually costing around $25 a month. You can also reduce your rates by combining renters insurance with other policies.

4. Health Insurance

Once you’re 26, you need your own health insurance. If you’re healthy, a catastrophic plan should be good until you’re 30. After this, you can sign up for a health care plan under your employer or through Marketplace. Even if your employer offers health coverage, it’s a good idea to shop around on your own, as you may find better rates.

Insurance needs can be confusing, especially when you are young and money is tight. Your best bet is to work with an independent insurance agent who has access to many types of insurance companies. This way, you can get reliable quotes, bundle your policies, and ensure that you are properly covered.