As much as we try to prevent them, accidents are a part of life. Thankfully, a lot of them are minor and inconsequential; however, serious harm to someone or their property could occur at any time.
Damage caused by you or while on your property can lead to fines, lawsuits, or even jail time if you’re not properly insured. The smart decision is obvious: protect yourself with adequate coverage or suffer the outcome.
Let’s examine some common types of insurance the average person should have.
Automotive Liability Insurance
Besides being involuntarily mandated by the state, there are a lot of other good reasons to insure your ride. We hope to never be in an accident but they are, unfortunately, common, so it’s best to be prepared. Cars are worth a lot – the people inside more so – and they’re hurtling across the land at 60+ MPH or more; when an accident does happen, it’s going to cost a lot to fix. Make sure you have the right amount of coverage or you could be liable for costs yourself.
Any adult knows how expensive car insurance can be on a valuable car because of the inherent risks native to driving. If you don’t want to risk lowering your coverage to save on insurance, consider driving a less valuable car when a fancier alternative isn’t necessary. Craigslist has a ton of great used vehicles: you can use Zoom The List to make your search even easier by combining several states in one search.
Personal Liability Insurance
A personal liability insurance plan, otherwise known as an umbrella policy, can provide additional coverage beyond what you may already have through your home or auto coverage. If someone falls off your deck and needs $450,000 worth of medical care and your home insurance only covers $200,000 in damages, you’re going to be liable for the extra $250,000 that isn’t covered. Those who open themselves up to more risk should definitely consider supplemental umbrella coverage.
You might think instinctively that an umbrella policy must be prohibitively expensive or they would be more common, but they are actually very reasonable. It’s hard to put a price tag on peace of mind, but it could be a lot lower than you think.
Business Liability Insurance
While not always mandatory, if you’re considering operating a business without insurance, you should re-evaluate your plans before proceeding with them. Anything that relates to business is going to cost two or three times what the same thing costs in the personal realm, so if you get sued, prepare to pay out big bucks.
The relatively low cost versus the large amount of protection you get makes business insurance a no-brainer. Protect yourself in the event that you accidentally damage a client’s home or possessions.
It may be hard to see the benefit of insurance when we go years paying it without an event, but when something does happen, it will be worth every single cent that was spent on it. Don’t leave yourself open to expensive lawsuits or legal action: look into the appropriate insurance packages for your family and business!