It’s often said that insurance is useful no matter what it’s for, as you never want to be put into a situation where you could have avoided costly bills due to your lack of insurance. However, while there are many types of insurance that you need, there are also a few that you don’t that will simply be large money sinks. The following provides you with a quick look at how to determine the types of insurance that you need and don’t need, as well as specific examples of these types.
How to Determine the Types of Insurance You Need and Don’t Need
Being able to determine the types of insurance you need and don’t need depends entirely on what your needs are. You will need to look at your situation in life and determine what types of insurance would benefit you the most. If you are paying for insurance that you never see yourself using, then it’s basically just wasting you money. However, there are certain types that everyone will need and are practically required.
Examples of Types of Insurance You Need
In order to own and drive any type of vehicle, you will be required to own auto insurance. If you are caught driving without insurance, you will lose your license.
Health Insurance is basically essential for most people. No matter what age a person is, an adverse health condition can pop up at any moment. It’s also required by law to have health insurance. If you don’t, you will need to pay a fee that rises each year on your tax returns.
Anyone that is a contractor or owns a contractor business will need contractors insurance. This insurance is designed as general liability insurance and will help to protect contractors from claims and lawsuits made against them. Aside from general liability, there are a few other types of contractor insurance that can also be helpful and are absolutely necessary for any contractor, as accidents can and will happen.
Examples of Types of Insurance You Don’t Need
Unless you live in an area that is susceptible to flooding, then flood insurance is simply not needed. The only benefit of having it is because prices are so low.
Long-Term Care Insurance
Long-term care insurance is one of the most expensive types of insurance that there is, costing anywhere from $1,500 to $4,500 every year. As coverage doesn’t begin until three months after the policy is accepted, there’s hardly any reason to purchase this insurance unless you can easily afford it or it’s a necessity.
Credit Card Insurance
Credit card insurance is not very helpful much of the time. Credit insurance will help you with your payments once you have difficulty paying them, but will only pay the minimum that you owe every month, which makes the cost for the insurance not worth it.
There are a wide variety of different types of insurance that you need and don’t need. Outside of the aforementioned ones, as long as you pay attention to your needs and only buy insurance that you know you will put into usage, then you should be fine.