Insurance: A Safety Net For The Unforeseen

Carrying insurance is a necessity for anyone who wants to protect themselves financially in the event of an accident or other covered incident. The type and amount of insurance coverage you need will depend on various factors, including the state you live in, the value of your assets, and your personal risk tolerance.

In nearly every state, drivers are required by law to carry auto insurance with bodily injury and property damage liability coverage. This means that if you are at fault in a car accident, your insurance will cover the medical bills and vehicle repairs of the other driver, up to your policy limits. However, the minimum coverage amounts vary widely between states, so it is important to understand your state's specific requirements.

In addition to auto insurance, other types of insurance that may be worth considering include health insurance, home or renters insurance, and life insurance. Health insurance can help cover the cost of medical care, while home or renters insurance can protect you financially if your home or belongings are damaged or destroyed. Life insurance, meanwhile, can provide financial support for your loved ones in the event of your death.

Ultimately, the decision of how much and what type of insurance to carry depends on your individual needs and circumstances. By assessing your state's requirements, the value of your assets, and your risk tolerance, you can make informed decisions about the types and amounts of insurance coverage that are right for you.

Car insurance: mandatory in most states, with liability insurance being the main coverage

Car insurance is mandatory in most states, with liability insurance being the main coverage. The minimum amount of car insurance you need is state-required liability coverage, which allows you to pay for some, if not all, injuries and damages you're liable for in an accident. The most commonly required liability limits are $25,000 per person for bodily injury, $50,000 total bodily injury per accident, and $25,000 for property damage per accident. However, individual state requirements vary widely. Your state may mandate higher or lower limits than these, while also requiring additional coverages, such as personal injury protection.

If you're leasing or financing your car, your lender may require you to carry liability coverage above your state's minimum limits, in addition to comprehensive and collision coverage. Note that your state's minimum car insurance requirements are just that—minimal coverage. It's always a good idea to carry more liability coverage than what you're legally required to so you're not left paying the difference. For example, if you have a home, savings, and other valuable assets, you'll want to carry enough liability coverage to protect them in case you're liable in an accident.

Bodily injury liability coverage and property damage liability insurance, which are required in almost every state, pay for other drivers' expenses after accidents that you cause. Liability insurance can also cover your legal expenses if you are sued after causing an accident. However, liability insurance only pays up to your predetermined coverage limits, so your policy may be insufficient to cover all accident-related costs, especially if multiple drivers are involved and you only have state-minimum coverage.

In addition to liability insurance, you may also want to consider the following types of coverage:

• Collision insurance covers damage to your vehicle after an accident.
• Comprehensive insurance covers damage to your vehicle from something other than a collision, such as theft, vandalism, fire, collisions with animals, glass breakage, and damage from weather.
• Personal injury protection (PIP) covers medical costs for you and your passengers after an accident, regardless of who was at fault. It can also pay for other accident-related expenses, such as lost wages and childcare.
• Medical payments coverage (MedPay) is similar to PIP but only covers medical costs and is only required in some states.
• Uninsured/underinsured motorist coverage can help if you're hit by an uninsured driver, experience a hit-and-run, or collide with someone who doesn't have enough coverage to pay for the damage they caused.

Health insurance: carrying a physical card is optional, but it's important to have easy access

Health insurance cards are important to have on hand when dealing with healthcare or medical providers, but carrying a physical copy is optional. There are several pros and cons to carrying a physical health insurance card.

Pros

Having your insurance card with you is the surest way to make a medical treatment go smoothly with easy access to your information. It also allows you to call your insurance company with any quick questions, as most insurance cards list the phone number on the back. Carrying your card can also help prevent billing problems, as you won't have to pay the entire medical bill upfront and then request reimbursement from your insurance company.

Cons

Carrying a physical card can increase your risk of identity theft, as insurance cards contain a lot of personal information. If your card is stolen, thieves can use the information to visit a doctor, fill a prescription, purchase medical equipment, or file false claims in your name. Additionally, if someone steals your card and uses your information to get plan benefits or treatment, they could provide incorrect information about allergies or other medical conditions, which could then be associated with your health plan.

Alternatives to Carrying a Physical Card

If you want to avoid the risks associated with carrying a physical card, there are several alternatives. Many insurance companies now offer digital versions of insurance cards that can be accessed through a mobile app. You can also choose to only carry your card when you need it, such as when you have a doctor's appointment scheduled. Another option is to make a photocopy of your insurance card and keep it in a secure place at home. That way, if your card is lost or stolen, you can still access the information to notify your insurance company and look out for fraudulent activity.

Homeowners insurance: typically doesn't cover intentional acts or criminal acts, so CCW insurance is recommended for gun owners

Homeowners insurance is an important consideration for gun owners, as it can provide financial protection in the event of damage, theft, or accidental discharge of their firearms. However, it's crucial to understand the limitations of standard homeowners insurance policies when it comes to intentional acts or criminal acts involving firearms.

Typically, homeowners insurance does not cover intentional acts, including the use of a firearm, even in self-defense situations. This means that if a policyholder intentionally shoots someone, even an intruder, they may not be covered by their insurance policy. Most policies exclude coverage in these scenarios, and only a few provide coverage for injuries and damages resulting from the use of "reasonable force" by the policyholder. As a result, gun owners may find themselves facing significant financial repercussions if they are involved in a shooting, even if it was justified.

Additionally, homeowners insurance also excludes coverage for criminal acts. This means that if a gun owner is involved in a criminal act, such as homicide, their insurance policy will not cover any resulting damages or legal expenses. Criminal acts are generally excluded from insurance coverage, as those who break the law are already subject to penalties through the justice system.

To address these limitations, CCW (Concealed Carry Weapon) insurance, also known as firearm liability insurance or self-defense insurance, is highly recommended for gun owners. CCW insurance provides legal protection if a gun owner uses their firearm in self-defense, filling the gap left by homeowners insurance. It covers legal representation and defense in criminal investigations and civil court proceedings that often follow self-defense incidents. CCW insurance can also provide coverage for bail, income loss, and legal expenses up to policy limits.

While CCW insurance is not a legal requirement in any state, it is a wise investment for gun owners to protect their financial and legal interests. Accidents, including accidental discharge, can happen despite caution, and CCW insurance ensures that gun owners are prepared and protected. By securing CCW insurance, gun owners can demonstrate responsible gun ownership and mitigate potential financial and legal repercussions related to the use or carrying of their firearms.

Collision and comprehensive insurance: often mandatory for leased or financed vehicles, covering theft, vandalism, collisions, etc

Collision and comprehensive insurance are two types of car insurance coverage that protect your vehicle from physical damage. While collision insurance covers damage to your vehicle caused by a collision with another vehicle or object, comprehensive insurance covers damage caused by anything other than a collision, such as vandalism, theft, or natural disasters.

When it comes to leased or financed vehicles, collision and comprehensive insurance are often mandatory. Lenders typically require these coverages to protect their financial interests in the vehicle. This ensures that, in the event of an accident or damage, the cost of repairs or replacement will be covered by the insurance policy. The requirement for collision and comprehensive insurance may depend on the specific terms of your lease or finance agreement and the policies of the lender or leasing company.

Collision and comprehensive insurance can provide valuable protection for leased or financed vehicles. Collision coverage will cover the cost of repairs or replacement if your vehicle collides with another vehicle or object, regardless of who is at fault. This can be especially important if you are involved in a hit-and-run accident or if the other driver is uninsured. Comprehensive coverage, on the other hand, will protect your vehicle from a wide range of non-collision-related incidents, such as weather-related damage, falling objects, and animal collisions. This type of coverage is particularly useful if you live in an area prone to extreme weather, natural disasters, or high animal collision rates.

When deciding whether to include collision and comprehensive insurance in your policy, it's important to consider your personal financial situation and the value of your vehicle. These types of coverage may not be worth the additional cost if your vehicle has a low resale value or if you have the financial means to cover potential expenses or replacement costs out of pocket. However, for leased or financed vehicles, the benefits of collision and comprehensive insurance often outweigh the costs, providing peace of mind and ensuring compliance with the requirements of your lender or leasing company.

Personal injury protection (PIP): mandatory in no-fault states, covering medical bills and lost wages

Personal injury protection (PIP), also known as no-fault insurance, is a type of insurance that covers medical expenses and lost wages for you and your passengers if you're injured in an accident, regardless of who is at fault. PIP is mandatory in some states, optional in others, and not offered at all in others.

In no-fault states, drivers are required to carry PIP coverage so that their medical expenses resulting from a car accident are covered by their insurance, regardless of who is at fault. No-fault states also put restrictions on the right to sue, allowing only lawsuits that involve severe injuries to be filed. The intent of this system is to reduce the cost of auto insurance by keeping lawsuits over minor injuries out of the courtroom.

PIP coverage can include:

• Medical bills for you and those covered on your policy (including if you are hit by a car while walking or riding a bike)
• Lost wages if you or your passengers are injured and cannot work
• Household services such as childcare, house cleaning, or yard work
• Disability and rehabilitation costs
• Death benefits (paid to your family if you are in a fatal accident)

The amount of PIP coverage required varies by state. For example, in Delaware, drivers are required to have $15,000 in PIP coverage per person and $30,000 per accident, while in Oregon, the minimum PIP coverage is $15,000.

While PIP covers medical expenses and lost wages, it does not cover damage to your vehicle or property damage. To protect against these types of damages, you would need to add comprehensive car insurance coverage and auto collision coverage to your policy.

Frequently asked questions