Different Types of Insurance to Consider

Life is full of unexpected surprises. Depending on the severity, life can be emotionally and financially catastrophic. Be proactive by exploring the different types of insurance policies that are available. 


In addition to being illegal in most states, driving without insurance can also cripple you financially. A variety of auto insurance policies cover damages to vehicles and injuries sustained in collisions. If you cause an accident and are at fault, liability auto insurance covers the property damage and injuries caused to others. If you are sued due to an automobile accident, liability car insurance also covers your legal defense and any judgments or settlements. Coverage for uninsured or underinsured drivers protects you and your passengers if an underinsured driver causes an accident and impacts your car. An uninsured motorist policy may also cover lost wages and emotional distress. Protection from personal injury (PIP) protects you and your passengers regardless of who caused the collision. This insurance might cover lost wages, medical expenses, and services like child care. 


In contrast to auto insurance, homeowner insurance is not mandated by state law. However, lenders often require coverage if you finance your home. You will need it to rebuild in the event of damage and protect against defaulting on your mortgage. If anything damages or destroys your house and you don’t have home insurance, you’re liable for the costs of replacement or repairs. This is true even if you own your house and don’t have a mortgage. Multiple forms of coverage are bundled together in home insurance policies. Personal property coverage protects personal goods, furniture, appliances, and clothing. Explosions, fire, and theft are included. The typical range for personal property insurance is 50% to 70% of your home coverage. If you require more coverage, you can purchase it. Outbuildings or other structures on the grounds is a type of insurance that covers structures on your property, such as a fence or tool shed. 


Finding the best life insurance for your scenario is crucial if anyone depends on you financially. According to the Life Insurance Marketing and Research Association (LIMRA), 44% of American households would experience financial difficulties within six months following the death of the primary wage earner. For 28%, it would happen in just one month. One approach to replace your income in the event of an untimely death is through life insurance. There is also short- and long-term disability insurance that may be available through your employer.