There are all kinds of insurance. There are policies for cars, motorcycles, homes, life and health insurance. I will primarily discuss personal lines insurance. There is also insurance offered for business and more.

Is it important to have insurance?

Thats a wide open question. We have a need to insure against a liability and to protect our assets. Lets talk about the different insurance offered.

Car insurance is mandatory in California. You don’t have to have full coverage, just the minimum requirement set by law. That minimum is 15,000 per person, 30,000 per accident and 5,000 for property damage. The rest of the coverage is up to you.
What is your threshold for taking on the risk and not paying the insurance companies.  How much can you afford?  How much will you lose if you don’t have the added insurance? These are the kind of questions you should be asking yourself.  Am I insured properly?  Do I have assets to protect and the resources to pay for them?

Home insurance is mandatory if you have a mortgage.  Even if you pay your home and have no mortgage you still need to insure your home from loss.  A home is likely the biggest investment in most people’s lives.  You have to protect it.  If you have an at-fault accident on your car policy and don’t have enough coverage the lawyers will attach liens on your home.  Yes, you need to have the right kind of limits to protect your assets.

Okay, so far car and home insurance is very important.

Let’s discuss life and health insurance.  How important are they and are they as important as car and home insurance?
Well, it really depends on your personal situation, but for the most part everyone needs some kind of health insurance. Hopefully, you have a good plan through your employer.  If your not that lucky, you have to buy individual health insurance, yes, its expensive.  But, you can get a plan that is right for you and your family.  Here again, you need to talk to a professional who can help you sort out which program is right for you.

Life insurance is another one of those important risks.  If you are a family man you have to consider what would happen to your family in the event of your untimely death.  You want them to continue to live the same lifestyle when you were alive.  Some of your kids might need college funds.  You still have to pay the mortgage and on-going bills.  What does your spouse do if the wage earner is gone?  I’m sure you see my point.

Lastly, I’ll make a brief comment about business or commercial insurance. This is an obvious, it is needed and nothing more needs to be said.

Well, I hope my discussion on insurance has enlightened you. Maybe, it has sparked some questions. Call your agent if you have any questions or concerns.
Remember, drive safely and be insured.