Four Different Types of Insurance Everyone Needs

Category: Finance By: Ariana Smith Posted on: September 22, 2020

Do you find yourself overwhelmed by the number of options for insurance on the market, all telling you that you must get a policy? Insurance is the best preventative measure you can take to help protect yourself against unexpected emergencies that could be very costly if you are not insured. Although insurance might seem like a nuisance when you do not need it, should you need it, you will be thankful that you are covered. Below are four different types of insurance policies you should have.

Four Different Types of Insurance Everyone Needs:

1. Auto Insurance

Auto Insurance

Not only is having auto insurance required by law, but it can also be very costly if you get into an accident. The types of auto insurance you can choose from include:

  • Liability insurance covers the costs of property damage and injuries if you are responsible for the accident. Some states require that you purchase a minimum amount of coverage, so you should check with your state.
  • Collision covers the cost of damage to your vehicle no matter who is at fault.
  • Comprehensive insurance covers losses and costs that are not caused by an accident such as fire, vandalism, or theft.

Insurance companies base their coverage quotes on your risk level and how likely you are to be subjected to theft. In general, the more coverage you want, the higher the cost. Did you know that a car tracker can possibly reduce auto insurance premiums? A car tracker uses technology to message you if there is any movement of your vehicle. Some systems can also send an alert directly to the police in real-time, making it easier for them to find your stolen car. Using a tracking system tells insurance carriers that you take security seriously by reducing the risk of theft. It also increases the chances of finding it quickly should it get stolen, incurring lower costs for the insurance company and potentially offering you lower premiums for coverage.

2. Life Insurance

Life Insurance

The best way to help protect your family’s financial security is to carry life insurance. Which type of insurance you choose will depend upon many factors, including your age, your unique needs, and how many family members are financially dependent on you. If you have a spouse, parents, or children who will face financial difficulty if you die, you should make taking out a life insurance policy a priority.

Life insurance policies cover the costs associated with dying, such as mortuary and burial fees. It can also cover debts such as loans and mortgages and offset lost income. Purchasing life insurance can be difficult and confusing to figure out how much and what type of coverage you need. You should think about speaking with a professional who can explain the available options and help you choose a life insurance policy that best meets your needs.

3. Health Insurance

Health Insurance

The high cost of healthcare today makes getting health insurance necessary. Coverage ranges from doctors’ appointments to hospital visits. Even though health insurance can be expensive, not having it could potentially become an overbearing financial burden. Serious illnesses or injuries that result in a lengthy hospital stay can easily cost five-figures.  Every adult should have some form of health insurance, whether they get it from their employer or purchase their own. Most children are covered under one of their parent’s insurance plans.

4. Homeowners Insurance

Homeowners Insurance

Homeowners insurance protects your possessions and home against theft or damage. Also, most mortgage companies require you to have this coverage to be eligible for a loan. Although homeowners insurance policies vary according to where you live, most typically cover repair damage caused by risks, including:

  • Fire and smoke
  • Theft
  • Frozen plumbing
  • Severe weather
  • Water damage from heating or cooling systems, plumbing, and water heater

Depending upon where you live, other types of insurance might be necessary. For example, if your home is in an area prone to flooding, it is highly recommended that you purchase flood insurance. There is a large variety of insurance policies with different coverage options, features, and prices. When shopping for insurance, do so carefully and make sure you understand the cost and coverage.

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Ariana Smith

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

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