Most people require several types of insurance, including life, auto and health insurance. Other types of insurance policies, like travel insurance, are good to have, but not necessarily essential. Learn which insurance policies you need.
Auto insurance—required by law in most states—covers you in the event of property damage or physical injury incurred while driving. If you're found to be at fault in an accident, auto insurance policies also provide protection against litigation. Comprehensive car insurance covers theft, fire or other damage to the vehicle. You may also opt for uninsured drivers insurance, which protects you if you're involved in an accident caused by an uninsured motorist.
Health insurance covers medical costs in the event of physical injury or illness, making it one of the most essential types of insurance. Health insurance policies vary widely in insurance coverage options. Employers may also include health insurance in company benefits, or at least pay for a portion of their employees' health insurance policies.
Life insurance protects a policyholder's dependants from financial difficulties in the event of his death. As is the case with most types of insurance, an individual's life insurance needs change over the course of her lifetime. If you're married or have children, life insurance is one of he most important types of insurance, while people without dependants need little—if any—life insurance.
Several types of insurance cover homes and personal property. Homeowners insurance protects homes and possessions against fire, theft and other damage. Depending on your location, you may need additional coverage to protect against hurricanes, earthquakes or floods. If you don't own a home and you're renting, you may wish to purchase renter's insurance. Even though you don't need to insure your residence, renter's insurance will protect your personal possessions.
A home warranty is actually a service contract. In exchange for a monthly fee, a home warranty covers repair costs associated with appliances and household systems, including plumbing and electrical systems.
Travel insurance covers emergency medical costs while you're traveling. In some countries, a medical emergency may require medical evacuations to a country with better health facilities; travel insurance will protect you against these costs.
Learn about these various types of insurance and make sure that you have adequate coverage for your situation.