Why You Need Insurance Protection

As a lawyer, I can tell you that people underestimate the importance of the role that insurance plays in their lives. Auto insurance, home insurance, life insurance and health insurance all provide vital protections against the disasters that befall the average American. Why do you need insurance protection?

Auto insurance provides many different types of protection.

Auto insurance is one of the least-considered and most-used types of insurance. Auto insurance provides vital protection in many different circumstances. If you’re driving a car and cause an accident, auto insurance pays the damages and typically provides for legal defense if you’re sued.

If you’re injured in an auto accident, auto insurance can pay your medical bills. And finally, if you’re driving a rental car or are the victim of a car accident, auto insurance can pay medical bills, lost wages and to repair your vehicle. All of this protection depends on the coverage you have, so explore your coverage to ensure you have enough protection for your needs.

Homeowner’s insurance protects your home from disasters.

Homeowner’s insurance provides vital protection for your home in the event of a disaster. Fire? Homeowner’s insurance will probably pay to repair or rebuild your home. Someone injured on your property? The liability portion of homeowner’s insurance will pay bills and protect you from a lawsuit.

Homeowner’s insurance is required by many lien holders, but make sure you have the coverage you think you have when you examine your homeowner’s insurance policy. Many homeowners’ insurance policies don’t cover Acts of God, and they may not cover flooding, either.

Health insurance is vital in today’s society.

Medical care isn’t cheap, and some states are now getting to the point that you’re required by law to have health insurance. Regardless of whether or not it’s mandatory in your state, it’s a good idea to have health insurance. Health insurance may be costly, but it saves you a lot of money in the long run if you have to have an unexpected medical procedure. Further, some health insurance policies cover voluntary medical procedures that might not be financially possible without health insurance, providing extra benefits.

Life insurance protects your family.

Finally, you don’t want to forget about life insurance. Many people feel they don’t need to worry about life insurance until later in life, but then find themselves in situations where a spouse or family member dies unexpectedly and there’s no life insurance. You should get life insurance equal to a year’s salary, and sufficient to pay off any outstanding obligations, such as home loans, student loans or other debt. It’s not something people typically think about until they reach a certain age, but you should plan for every eventuality so you’re not caught by surprise in the event of an unexpected accident or loss.