Life is full of surprises, many of which we have absolutely no control over. What we can do is protect ourselves, and our loved ones, from unexpected situations that might leave us in financial peril.
This is why everyone should get insurance. Now, there are plenty of different types of insurance, so it can be tough determining which one you actually need.
However, there are three types of insurance that are absolutely paramount to have, and those are health, car, and renters insurance. Here’s what each of them entails.
Renters Insurance
Renters insurance helps you replace your personal possessions in case of theft, fire, water damage, or many other unexpected events. It’s just like homeowners insurance, except it’s aimed at people who live in a rented home.
- Coverage
An apartment renters insurance will reimburse you and help you quickly get back on your feet if your belongings are destroyed in case of fire, theft, vandalism, windstorm, hail, smoke, water damage, damage from aircraft and other vehicles, riots, and some other perils.
It will also cover temporary living expenses in case your rented home becomes uninhabitable due to any of those events, and you need to find some other place to live until your home gets repaired.
- Liability
Renters insurance will help you cover potential medical bills if someone happens to get injured in your home, either from any of the aforementioned events or from an unexpected slip and fall. If they decide to take you to court, your renters insurance policy will cover the legal fees as well.
- Costs
The average cost of renters insurance is $187 a year. This means that you would need to pay about $15 a month for your policy, which is certainly something that you can afford.
Replacing potentially lost or damaged items out of pocket would cost you significantly more, so getting renters insurance is the smartest step to take.
Health Insurance
Health insurance is a must for everyone because you never know what the future may hold. An unexpected illness could cost you a great deal of money, as hospital stays, not to mention operations, tend to be very expensive.
As shown on this site, medical bills are behind 60% of U.S. bankruptcies. As Harvard’s Dr. David Himmelstein said in one statement, “your family is just one serious illness away from bankruptcy.”
- Coverage
Health insurance covers the cost of medical care. That includes emergency services, hospitalization, outpatient care, laboratory services, pediatric services, prescription drugs, rehabilitative services and devices, preventive and wellness services, chronic disease treatments, and maternity and newborn care.
- Liability
If you’re a healthcare professional, you can get medical liability insurance as part of your health insurance policy. It will protect you against potential liability claims associated with bodily injury due to wrongful practices.
- Costs
The average cost of health insurance is about $440 per month. It may seem expensive, but you can’t really put a price tag on health, can you? It’s better to obtain insurance than to get in a situation where you cannot afford to pay for medical care.
Car Insurance
If you own a car, then getting car insurance is a must. Car insurance will help you replace your car in case of theft, or repair it in case of vandalism or some other unexpected circumstance, such as a road accident.
- Coverage
Car insurance covers the cost of damage to your car, regardless of whether it was caused by your or someone else’s negligence. That’s collision insurance, but car insurance also includes comprehensive insurance, which reimburses you in case of other types of accidents, such as a tree falling and destroying your car.
This type of insurance also covers medical bills in case you sustain an injury in an accident.
- Liability
Car insurance also includes bodily injury liability and property damage liability. This means that it covers potential injuries to third-parties in an accident and damages to their vehicles.
- Costs
As exemplified here, the average cost of car insurance is $1426 per year or about $118 per month. The cost varies due to a wide range of factors, such as the type of vehicle and car insurance rates in certain states and regions.
Conclusion
Obtaining all these three types of insurance may seem like an expensive endeavor that you don’t really need. However, when you weigh them against the potential financial losses that you might experience due to unforeseen circumstances, you can certainly see that they’re more than worth it.
If you want to ensure financial stability for you and your family, consider getting health, car, and renters insurance right now. Not only will you have a peace of mind, but you’ll also completely eliminate the risk of potential financial ruin.
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