The world of insurance can be overwhelming and confusing to most Americans.
It is difficult to know what types of insurance you should prioritize. When you're working within a budget, you may be tempted to cut certain types of insurance out to save a bit of money. In many cases, this could be a huge mistake.
Some types of insurance are required by law and, if you're caught without them, you could be in serious trouble. Depending on where you live, the required insurance may include auto insurance, health insurance, homeowners or renters insurance, and even disability insurance.
Auto Insurance
Auto insurance is mandatory in almost every state. If you are caught driving without it, you may face serious fines and penalties. Most states require a minimum amount of liability coverage as well as uninsured motorist coverage (in case the other driver doesn't have insurance).
Home/Renters Insurance
There aren't any laws stating that you need to get homeowners or renters insurance, but it's certainly wise to do so. If you've got a mortgage, your lender may require you to get home insurance to protect their stake in the property.
These types of insurance help you financially if your home or belongings are damaged or stolen. Without it, you'd have to pay out of pocket to replace your belongings, which can be financially devastating in many cases.
Health/Life Insurance
Health and life insurance are both non-mandatory, yet essential forms of protection. If you have dependents, life insurance is necessary to ensure that they're looked after financially when you pass away. You'll choose between term and whole life insurance, which will depend on your budget and needs.
Health insurance is important because most medical attention in this country is enough to cripple someone financially. If you pay into a health insurance policy or get it through your employer, you can significantly reduce the burden of medical bills.
Business Insurance
If you're a business owner, there are a few different types of insurance that are mandatory. General liability insurance protects your business against claims of bodily harm or property damage. For example, if someone slips at your restaurant, general liability insurance covers their medical bills.
Workers' comp insurance is similar but covers an injured worker's medical expenses and missed time. If you're found without one or both of these, you could be hit with major expenses or even serious fines.
Get the Right Types of Insurance
Not all these types of insurance are legally required, but they're all highly recommended. Not only do they protect you, but they put your mind at ease. Knowing that you're covered in the event of an auto accident, natural disaster, or medical emergency allows you to focus on other things.
If you need auto, home, business, or life insurance in Greensboro, NC, look no further than the Tom Needham Insurance Agency. We'll help you find the best possible rates, so you have the protection you need without breaking the bank. Contact us today to find out what we offer.