Driving without auto insurance is against the law in almost every state. It’s not just about legality; having coverage can save you from significant financial trouble if you’re involved in an accident.
Key types of auto insurance include:
Liability coverage: This pays for property damage and injuries you cause to others if you’re at fault in an accident. It also covers legal defense costs.
Uninsured/underinsured motorist (UM) coverage: If an uninsured or underinsured driver hits your vehicle, this coverage helps pay for medical expenses and other damages.
Personal injury protection (PIP): Regardless of fault, PIP covers injuries to you and your passengers, along with lost wages and other related costs.
Comprehensive and collision coverage: These work together to cover damage to your vehicle. Collision insurance pays for repairs or replacement after an accident, while comprehensive insurance covers theft and other non-collision incidents like hail damage or vandalism1.
Home Insurance:
If you own a home, having home insurance is crucial. It protects your property and belongings against risks like fire, theft, and natural disasters.
Key components of home insurance:
Dwelling coverage: Covers the structure of your home.
Personal property coverage: Protects your belongings (furniture, electronics, etc.).
Liability coverage: Helps if someone is injured on your property.
Additional living expenses coverage: Pays for temporary housing if your home becomes uninhabitable.
Other structures coverage: Includes structures like sheds or garages on your property2.
Health Insurance:
Health insurance is essential for managing medical costs. It covers doctor visits, hospital stays, prescription medications, and preventive care.
Types of health insurance:
Employer-sponsored plans: Many people get health coverage through their jobs.
Individual plans: Purchased directly from insurers or through marketplaces.
Medicare: For seniors aged 65 and older.
Medicaid: Provides coverage for low-income individuals and families.
Catastrophic health insurance: Offers low premiums but high deductibles for major medical expenses3.
Life Insurance:
Life insurance provides financial protection for your loved ones in case of your death.
Types of life insurance:
Term life insurance: Covers a specific period (e.g., 10, 20, or 30 years).
Whole life insurance: Provides lifelong coverage and builds cash value.
Universal life insurance: Combines life insurance with an investment component.
Final expense insurance: Covers funeral and burial costs.
Variable life insurance: Allows investment in stocks, bonds, or mutual funds4.
Renters’ Insurance:
If you’re renting, consider renters’ insurance. It protects your personal belongings and provides liability coverage.
Coverage includes:
Personal property: Covers your stuff (clothes, electronics, furniture).
Liability: Helps if someone gets injured in your rental unit.
Additional living expenses: Pays for temporary housing if your rental becomes uninhabitable
