Types of Insurance
There are many types of insurance policies to consider when it comes to protecting your family. Some insurance policies are required, like auto insurance when operating a motor vehicle or homeowner’s insurance if you have a mortgage. Other types of coverage are largely optional (e.g. life insurance or health insurance).
There are many types of insurance, but below are some of the common types of insurance policies.
What are the Types of Insurance?
Note: All types of insurance are regulated by the states, with each state having its own set of statutes and rules.
Auto insurance protects you from paying the full cost for vehicle repairs and medical expenses due to a collision. In most states, car insurance is mandatory and the law requires you to have auto insurance when operating a motor vehicle.
Health insurance helps you pay for doctor visits and sometimes prescription drugs. When you buy health insurance coverage, you and your health care provider agree to pay a part of your medical expenses — usually a certain dollar amount or percentage of the expenses.
Homeowner’s or renter’s insurance covers your home and the personal belongings inside the home in the event of loss or theft. Your Homeowners Insurance helps pay for repairs and replacement. If you have a mortgage on your property, most lenders require you to have homeowner’s insurance. If you’re renting, the landlord might require you to have renter's insurance.
Renters insurance policy covers the replacement value of your belongings should they be lost in a disaster. A renters policy will also protect against liability claims should someone injure themselves inside your home or apartment.
Life insurance pays a beneficiary of your choosing a set amount of money if or when you die. The money from your life insurance policy can help your family pay bills and cover living expenses. The two common types of life insurance are Term life insurance, and Whole life insurance.
Guaranteed Asset Protection (GAP) offers you additional protection if your vehicle is deemed a total loss due to accident or theft. GAP helps cover the difference between the actual cash value of your vehicle and your loan balance.
If you own a business, you may need to purchase business insurance to protect your business property and employees. The type of business insurance you'll need will depend on the size of your business, the type of business, and your business location.
Disability insurance provides benefits that replace part of your lost income when illness or injury prevents you from earning a living. Many employers offer some form of disability coverage to employees, or you can buy an individual disability insurance policy.
GAP Insurance
Umbrella Insurance
Flood Insurance
Pet Insurance
Always review your policy or contact your agent to identify the limitations and exclusions of your coverage.
