Types of Necessary and Unnecessary Insurance
Insurance is important in some senses and in others, it is almost useless. Understanding what is necessary and what isn’t confuses most. A quick breakdown of why you need a specific type of insurance and why other types are a waste of money will help you to make better decisions. The content below will help you decipher what you need and what is optional.
Health insurance is necessary. There are plenty of consumers that are underemployed or underpaid and it is not in the budget. It is important to know that there are ways to obtain health insurance that will help you out with reducing high bills and getting lower rates for office visits and lower prescription rates.
Keep in mind that insurance does have copays and you must be able to pay the copays to be seen. This includes copays for urgent care facilities.
Auto insurance is also a must. Millions of drivers take to the roads daily without insurance and cause accidents. If you are uninsured, it leaves you without a vehicle and possibly with injuries that you can’t pay to have treated.
If you can only afford liability insurance, make sure that you add comprehensive and collision to the policy. This covers you if your vehicle is hit while it is parked or if an act of nature destroys the vehicle. You should also have uninsured and underinsured motorist coverage as well.
If you are a homeowner, it is an absolute must that you have insurance. The weather is changing all over the United States, meaning that non-typical conditions are being presented in areas that are not prevalent to a specific type of weather. Insurance helps to repair your home after storm damage, helps to rebuild after a fire and can even cover some home systems if they should malfunction.
If you rent and you do not have renter’s insurance, your property is a complete loss and the landlord is not responsible for compensating you for those items. It is a must that you have renter’s insurance as well.
Vision insurance is something that is unnecessary. There are plenty of optical offices across the country that offer discount eyeglasses and contact lenses with free eye exams. This is far cheaper than a simple discount from vision insurance. Some optical offices offer 2-for-1 deals, insurance generally only covers one pair of eyeglasses at a time. It is a waste of money, to be honest, to pay for vision insurance unless you have a debilitating eye condition.
Depending on the type of pet that you have, pet insurance can be necessary. For instance, someone that owns dogs such as pugs or English bulldogs should have pet insurance. These two breeds are known for multiple medical problems that do cost a lot to treat and are lifelong issues. If you have a healthy cat or other breed of dog, it is likely that pet insurance will be a waste of money. Vet visits, for checkups and shot boosters are not all that expensive to begin with.
Dental insurance doesn’t cover as much as you think it does, so in most cases, it is a waste of funds. If you need for oral surgery, extensive dental care or a chronic dental issue you will want to have dental insurance as these are costly. For those that have good dental health and minimal problems, it is not necessary.
Travel insurance can be purchased per trip at the time the trip takes place. It is a good idea to get travel insurance as it will cover ticket loss due to weather or other events preventing your travel from taking place. It also covers lost items such as jewelry and electronics. It will even cover a small portion for clothing that is lost.
Understanding what insurance to purchase and what to just pay out of pocket for is a hard decision for most consumers. For instance, prescription coverage is sometimes useless if you take medication that is a low cost on a daily basis with some pharmacies. Insurance may make it more expensive. Consider what your family’s needs are and the information above before purchasing insurance.