There are many different types of insurance that people should have. Renters/home-owner’s insurance, auto insurance, health insurance and the list goes on. Carrying insurance isn’t on everyone’s top ten list of things to pay for this month. There are good reasons why you should carry the insurance that is particular to your needs. Insurance is important because the cost of not having it can be much more than you can afford.
Here is a look at the different insurance types and the reasons they are so important:
Auto Insurance Auto insurance is important to carry because, first, it is mandated in most states to have insurance coverage when you are driving a vehicle. You will get into major trouble if you get caught driving without it. The most important reason that you should carry auto insurance is that if you are in an accident and it is your fault, you will have to pay an astronomical amount of money for any damages, including medical costs, out of pocket. Most people can’t afford to do that. It is much easier to carry insurance whether you live in a state that mandates it or not. If you are in a state that mandates it and you get into an accident, the accident will be your fault no matter whose fault it really is. That is because you weren’t supposed to be on the roads at all because you have no insurance. If you hadn’t been on the road, the accident couldn’t have happened.
There is no point in dropping your auto insurance coverage because as per state laws, you are required to keep a minimum amount of insurance coverage. However, if you have a good driving record and have less number of speeding tickets to your credit, you may be in a position to reduce your premium to some extent. Talk to your insurance carrier and make sure you are clear enough to convey the reason for your inability to make auto insurance premium.
Raising your deductibles may have a marked effect on your auto insurance premium. However, don’t raise it too high. Alternatively, you can shop around for a better rate before your insurance policy is due for renewal.
Recession has also given rise to the increase in the number of “intentional accidents”. Barbecuing a Beamer is a very common insurance fraud. Reports suggest that auto insurance policy holders are pushing their cars off cliff. Cars are being intentionally torched. In addition to that the number of claims involving slip-and-fall injuries increased by 60% during the first 3 months of the year. The incidence of intentional torching of vehicles was recorded as 34% and incidence of damage to commercial property was at 76%.Incidents of insurance fraud are on the rise as the number of vehicles set on fire increased to 757 in the first 3 months of 2009. This is in sharp contrast to the number of vehicles set on fire which was 596 a year back during the same period.
Health Insurance Anyone who has gone to the doctor or hospital and had to pay the bill realizes how important health insurance is. Health insurance can be expensive, but the cost of not having it when you get one small illness is far greater. You can end up with very high hospital bills that you can’t pay off because you didn’t have health insurance. That is why so many people who are uninsured will not go to the doctor when they are sick. Health insurance should be of main interest to everyone because the chances of getting sick are extremely high. One illness can send you into bankruptcy and your credit could be ruined for life.
Homeowners/Renters Insurance If you do not have homeowner’s or renter’s insurance and something happens, such as fire, you will lose all of your belongings along with your home. You will not have enough money to replace the things that you lost. If you are the person whose name is on the lease or mortgage, it is utterly imperative that you carry insurance on your home. This covers the things inside your home as well as outside. In fact, it covers any accidents that happen on your property if you are a homeowner. It will generally even cover your property when it isn’t in the home. For instance, if you go away on vacation and take your laptop computer and someone steals it, you can make a claim with the insurance company to pay for the loss and replace the laptop. Without the insurance, you just lose the property. Renters insurance is fairly cheap and you should seriously consider getting it to cover your property.
There are far too many insurance types to list here. You get the general idea though. It is important to have insurance to cover you needs. Everyone has different needs. For instance, if you are a boat owner, you should have boat insurance. If you don’t have a boat, there wouldn’t be much point in having boat insurance. If you want to make sure that you will have enough money to cover incidents that could happen in your life, you will have to realize the importance of carrying insurance on those basic needs and follow through.
Consumers are ready to compromise with their safety to save some cash. This holds true not just in case of the auto insurance industry but other areas too. More and more people are shedding their insurance coverage so that it can bring down the cost of insurance premium. And this is undoubtedly helpful but may land you in serious trouble if you don’t have adequate coverage and you are in real need of it. Financial experts are of the opinion that during recession, having adequate coverage is even more important.
Insurance is one of those things that you only regret not having AFTER it’s too late. By then, your business or income or even health could be in jeopardy. It can be avoided proactively with policies for your business.
In these tough financial times everyone is looking to cut costs to save money, homeowners to business owners all want to reduce their bills.