Basics of Insurance

Basics of Insurance

At some point in your life you are going to have to get some type of insurance coverage, be that for your car, home or business.  Insurance is there to protect you and others against loss.  There is insurance for almost everything but the most common types of insurance are home, auto, health and life insurance.  Let’s have a look at the basics of insurance to help you navigate these complicated policies and coverage.

Car Insurance

Auto insurance is necessary in most states for any motorized vehicle including trucks, cars and motorcycles.  It is there to protect you and others in the event of a traffic accident.  Depending on your policy it can cover damaged property including your car and other cars, medical costs if someone is hurt and liability.  Auto insurance rates can vary but young drivers and those with poor driving records will have the highest premiums. Find cheap car insurance in Denver here

Home Insurance

Home insurance is there to protect you from losses if there is damage to your home.  Depending on the type of coverage you have it will cover losses from fire, storms, replacing the contents of your home and your own personal possessions.  If you live in a state where natural disasters can be quite common, for example hurricanes in Florida it may be necessary to buy additional coverage for these events.  Always check with your agent to verify what is covered in your policy.  Here is an overview of homeowner’s insurance and the type  of coverage.

Health Insurance

Health insurance is there to cover your medical bills when you are ill or injured.  However this is by far the most complicate branch of insurance coverage available.  You can have your health insurance through your place of business or buy your coverage individually.  Premiums can vary with age, health and occupation and there are vast differences in coverage from state to state.

Life Insurance

Lastly, there is life insurance where the insurance company pays a sum of money to your beneficiaries when you pass away.  Each month you pay the insurance company a lump sum or a premium.  There are different types of life insurance policies, whole and term policies.  Term policies are in effect for a specific period of time and whole can be for the duration of your life.  There are other differences between the two as well, some will cover critical illness and others retain some cash value.  You should speak with an insurance agent  or broker to see which is right for you.