If you're a new graduate, you may need to think about the things your parents used to take care of that will now be your responsibility. Insurance for cars and personal possessions are two new worries that you must assume as you enter the real world.

Renters Insurance

Renters insurance is really a form of a homeowners policy. It protects your things from numerous perils like fire and theft. Remember, if your stereo is stolen or damaged, your landlord's insurance will not cover the cost to replace it, but your renters insurance will.

Renters insurance also covers, up to the policy limit, your liability for damages that you and members of your family (including pets) do to other people.

There are two types of renters insurance: replacement value and actual cash value. Replacement value will replace the item with one of the same like and kind. Actual cash value is replacement cost minus depreciation. This type of policy pays less than the full cost of replacing the item.

Typically, policies have coverage limits for items like computers, televisions and jewelry. A floater or endorsement will provide more protection for these valuables. Check with your insurance agent or company representative to discuss which items will need additional coverage.

When first moving into an apartment, take an inventory of all of the things you own in your apartment. Use pictures or videotape to document your belongings. Store the pictures and inventory off-premises. Update your inventory annually to include new purchases.

Car Insurance

This is a time when you may be buying a car for the first time. The cost of insurance added to the monthly car payments can be a real financial burden. If you can't afford the insurance, you can't afford the car.

In order to save money on your auto insurance, think about purchasing a low-profile car. A car that is popular with thieves or has expensive repair costs will cost more to insure.

You can also lower your insurance premium by raising your deductible, installing anti-theft devices or dropping collision coverage if it's an older car.

Also, keep in mind, prices can vary substantially from company to company, so it pays to shop around.

Finding An Insurance Agent Or Company

Ask your friends, relatives and colleagues where they bought their insurance and what kind of service they received.

Also, contact your state insurance department for information about agents and companies in your area. Many state insurance departments also have cost-comparison surveys.