Insurance is important because it protects you from loss. Different types of policies include those that cover costs for accidents, illness and property damage. Insurance companies pool risk of loss by insuring multiple people who pay premiums for coverage. This spreads the risk of loss among a large number of insured to distribute money to cover losses for a smaller number of people.
Shopping for the right insurance becomes just as important as the policy. You want enough insurance for your car, possessions or your health for the price you can afford. This usually requires searching online or contacting insurance companies and agents for the best deals. Independent agents often have premium quotes for several insurers in your area. Talking with an agent, either in person or by phone, helps you to better understand the costs and coverage of particular policies. State insurance departments regulate and monitor insurance companies. State regulators have information on companies and rates to help you find providers.
If you own a car, you need liability insurance at a minimum in most states to cover damage you might cause to others in an accident. If you have a newer car, especially one on which you have a loan, you need additional insurance to cover damage to your car in a collision, as well as fire or weather damage and theft. Auto insurance handles coverage for injury to you or anyone else in your car and helps with expenses if an accident involves an uninsured motorist. You can find an inexpensive policy for low monthly premiums with a high deductible, the amount of damage reached before you get compensated. However, the higher you go above the minimum requirement, the more protection you have for you and your car.
Renters insurance insures your possessions. A landlord’s property insurance usually covers damage or injuries on the property, but it won’t help you if your possessions, such as your computer or flat-screen TV, are stolen or damaged. Some renters insurance policies are so cheap you can afford annual premiums or monthly premiums from $10 to $15. This covers you for $20,000 to $30,000 of property loss. Check the policy for discounts on smoke detectors or fire extinguishers if the home or complex you rent at has them. Take inventory of your valuables once you get insurance in case you ever need to make a claim.
No matter what type of insurance you intend to get, insurance polices bring you peace of mind to cover financial difficulties you could face without coverage. You might not like spending the extra money each month, but you know your valuables are protected. Sometimes you can’t afford certain types of insurance. Employers often have health insurance plans for their employees. Even if you elect not to participate in a plan at your job, discuss the options with the administration at work or friends who have health insurance to consider your future needs and learn more about the value of insurance.
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