Must Have Insurance

Must Have Insurance

Must Have Insurance

When it comes to insurance, the national debate around health care will probably continue to hog all the attention for years to come—but what about all the other types of insurance out there? The insurance industry is one of the largest in America, after all, and not all of that money is the result of medical premiums. What about all the other types of insurance on the market? Do we need to have insurance for everything, or are there just a few must-haves for all of us. Below, we take a look at some of the absolute must have insurance types in America.

Important Coverage for the 21st Century

  1. Auto, motorcycle, and boat insurance: While state laws vary on who needs what and how much, insurance is an absolute must for anyone who owns a car, motorcycle, or boat. Not insuring these items can not only keep you from legal operation, but can result in serious fines.
  2. Home insurance: Banks require home buyers to purchase home insurance before the point of sale. In fact, if the homeowners insurance drops on a house, your bank will be notified and they will instantly put their own policy on the house—and send you the bill. Moral of the story? Make sure to pay those home insurance premiums! Depending on the type of mortgage you have, you may have additional insurance to pay (called PMI) that is rolled into your mortgage payments.
  3. Health insurance: The Affordable Care Act (ACA) was a game-changer in the insurance game, and the penalties for not having insurance over the age of 26 (legally, people 26 and under can stay on their parents’ insurance) increase every year. If your work doesn’t pay for it, and it’s too expensive on your own, joining a health care sharing group may be the way to go.

Disability insurance: This type of insurance is offered through your employer, and you can elect whether or not to have it. While not required, there’s an extra peace of mind that comes from knowing that, if an injury were to prevent you from doing your job, disability insurance would still pay a large chunk of your monthly take-home pay.

While there are lots of other types of insurance out there, these four cover the basics for a vast majority of adults living in the United States.

Other Insurance Tips

Always buy the best type of insurance you can afford—even if it’s not much. Work with insurance companies that have a good history of cutting checks when something goes wrong, and who are known to be easy to work with. Make trade-offs where you must. For example, if you have lots of dental issues, but 20/20 vision, consider purchasing a dental insurance plan and foregoing vision insurance until you’re more financially able to take on that added luxury.

And our last insurance tip: seek out the advice of a seasoned pro. We love sharing useful tips on our humble Wisconsin car blog, but we’re not lawyers or insurance providers. Take the time to get expert advice before you make any large insurance decisions.