Did you know that being without car insurance for just one day could put you on the hook for millions of dollars in medical bills if you get into a serious accident? Did you know that getting hit by a drunk driver can cost as much as $20,000 in uninsured-driver premiums? Did you know that even if you live in your parents’ basement, they probably won’t cover your personal belongings if they are destroyed by a fire? Did you know that staying in a hotel while traveling can sometimes be considered an “unusual risk” by insurers? Unfortunately, many young people don’t understand how important it is to have different types of insurance. Even though insuring yourself against the many possible negative outcomes of life is expensive and inconvenient, not having it can be catastrophic. Here are 3 types of insurance everyone should have:
Auto insurance is a “strict liability” insurance. This means that the insurer doesn’t have to prove that you acted carelessly or were grossly negligent to deny payment. It doesn’t even matter if you were driving or near the car when the accident occurred. Auto insurance is not optional in most places—every driver must have it. It is designed to protect others from the costs of your negligence or accident. Without it, you could be forced to pay for accident damages out of your own pocket. This could easily run into the millions of dollars if you cause a serious accident. Auto insurance is also designed to protect you from the costs of your own injuries if you are hit by another driver or are involved in an accident that is not your fault.
Health insurance is an “act of God” insurance. This means that it is designed to cover the costs of many catastrophic events such as serious injury or illness. Health insurance is not to be confused with health care. Health care is the treatment you would get if you have one of these catastrophic events. Health insurance is the money that is paid to you to help cover the costs of this expensive health care. Health insurance is also sometimes called “medical insurance” or “health care insurance.” It is designed to cover the extremely high cost of your health care if you are seriously injured or become ill. Health insurance is not to be confused with disability insurance. Disability insurance is designed to pay you a certain amount of money if you become disabled and unable to work.
Homeowners or renters insurance is an “act of nature” insurance. It is designed to cover damage caused by fire, flood, hurricane, tornado, hail or other weather events, as well as damage caused by theft or vandalism. Homeowners or renters insurance is designed to replace your personal belongings if they are damaged or destroyed. It is designed to cover the costs of repairing or rebuilding your home if it is damaged by fire, flood, hurricane, tornado or hail. It is designed to cover the cost of replacing your personal belongings if they are stolen or vandalized. Homeowners or renters insurance is also designed to cover the cost of your living expenses if you are forced to leave your home because it has been damaged by fire, flood, hurricane, or other weather-related event.
Fire and Theft Insurance
Fire and theft insurance is an “unusual risk” insurance. It is designed to cover unusual risks that other common types of insurance don’t cover. Fire and theft insurance is designed to cover the costs of rebuilding your home or replacing your personal belongings if they are destroyed by fire, flood, or other natural disasters. It is also designed to cover the costs of repairing or replacing your personal belongings if they are vandalized or stolen.
The Bottom Line
Insurance is a necessary cost of living in the modern world. It is designed to protect you from the high costs of unexpected negative events. If you don’t have insurance, you could be responsible for paying millions of dollars out of your own pocket. The best way to avoid this is by taking out insurance for yourself as soon as possible and maintaining it for the rest of your life.