Nobody likes paying for insurance. After all, you’re just paying money for something that you hope never happens. And statistically speaking, you are unlikely to ever even file a claim anyway.
But, that thinking is faulty. Accidents can happen at any time. And the next time one happens, it could be you. When an accident does happen, you will finally understand why insurance is such a good idea, since it can save you thousands, if not tens or hundreds of thousands of dollars.
And you probably aren’t sitting on that kind of cash. Even if you were, you wouldn’t want to risk losing it to pay medical bills, would you?
So why is getting insurance so important? Keep reading to discover what protection is available, and why it’s worth every penny.
Insurance Might Be Required
There are many instances where having insurance is simply a requirement. For example, you cannot drive a car on public roads in the US if you do not have a liability auto insurance policy in place, at a minimum.
If you get pulled over for a traffic violation and don’t have insurance, you can lose your license, lose your vehicle, and lose your ability to get to work and provide for your family.
Likewise, having health insurance in place throughout the year will prevent you from incurring tax penalties when it comes time to file your tax return.
Save Money on Medical Expenses
Medical expenses aren’t cheap. Getting basic procedures done in the US can easily cost thousands, if not tens of thousands of dollars.
And if you need a procedure at a time when you don’t have insurance, then you can be responsible for the entire cost. Not exactly a situation you want to be in.
Sure, you might be young and healthy now, but what happens when it’s not just you? What happens when you start having kids? Kids need to see doctors way more frequently than you do. And they are likely to get injured more often.
And don’t forget about the birthing process. Without insurance, you could be on the hook for much as $20,000. And that’s if there aren’t any complications during birth.
Get Reimbursed for Accidents
Sometimes accidents hurt more than just your body. If you are injured, there’s a chance you might not be able to get to work until you recover.
This might mean that your income stops for a period of time. With most Americans living paycheck to paycheck, this isn’t feasible.
Having proper accident insurance coverage in place may help to cover your other expenses incurred during an injury, rather than just the medical expenses.
That’s also why many businesses add group accident insurance to their liability policy. If someone gets hurt on their premises, this additional accident policy would protect them from paying the injured party’s expenses out of pocket.
Stay Out of Debt
You never know when a medical emergency will occur. You never know when you will get in a car accident, or injure your toe while jumping off a diving board in your backyard.
If you aren’t insured, your medical bills will need to be paid. They won’t go away.
If you can’t pay upfront, you’ll need to set up a repayment plan. That means you’ll be in debt, making monthly payments, until it’s gone.
And if you can’t do this, your bills will be sent to a collections agency, which will work very hard to either get you to pay or ruin your life in the process. Your credit score can plummet if you have bills at a collection agency.
If this happens, say goodbye to your chances of getting a mortgage in the future, or financing a new car purchase, or getting loans to send your kids to college.
Protecting Your Home Is a Good Idea
One of the many uses for insurance is protecting your home. Whether you own or rent, you should have insurance in place. There’s a lot that can go wrong with the building you are living in.
Your house might burn down in a wildfire, which is increasing in frequency and intensity across the Western US. Or it might burn down because someone forgot to turn the stove off after making some eggs.
No insurance in place? Sorry, you just lost your home, along with your life savings that went into purchasing your home. But with the right insurance policy in place, you can file a claim and have the home either rebuilt or receive a check from your provider to go buy another home.
All of a sudden, insurance doesn’t sound so bad, does it?
Protect Your Other Assets and Belongings
Having homeowner’s or renters’ insurance will also protect your belongings. Going back to the fire example, if you lost your home then you likely lost all or most of your belongings in the fire as well.
You don’t just want the house to be rebuilt, but you also want to be reimbursed for all the stuff you lost. Your home insurance policy will cover the cost of your belongings up to your policy limit.
So even if you are just robbed, which is much more common than having your house destroyed by fire, you can be reimbursed for the items you lost.
And you can also get specialized insurance policies for higher ticket items, like boats, RVs, motorcycles, and even bicycles and computers. Anything that would hurt to lose, should be insured, or covered by one of your existing policies.
Saving on Insurance
Just because insurance is necessary, doesn’t mean it has to be super expensive. There are many ways you can save money on insurance.
For one, you can bundle multiple policies together to get a discounted rate. You can always go to work for an employer that offers a sponsored health insurance plan, helping offset your insurance costs.
Not making poor decisions, like smoking, doing drugs, and consuming copious amounts of alcohol, can also lessen your chances of requiring medical care, and help you pay less on insurance.
A Small Price to Pay
As you can see, insurance isn’t just a good idea — it’s an excellent idea. No, it’s not fun to make those monthly premium payments. But protecting your financial future by making small insurance payments is crucial for happiness long term.
Looking for more information like this? Don’t miss the other helpful articles currently available on our blog.