Common Questions about Insurance

Generally, you get insurance because you know that your life won't all be sunny days and there will be days where the rains will fall. Hard rains for some of us. You also get insurance, from an insurance company in NJ because there are things -- whether it’s your belongings or your life or your health -- that need protection. Here are some common questions that you might ask about insurance

What kinds of insurance do you need and why?

While there are many different kinds of insurance, there are kinds of insurance that you should never be without. Here are several that you can't really do without and, in fact, you will suffer legal penalties if you don't have these kinds of insurances, at least in the United States.

Health Insurance Auto Insurance Renters or

Homeowner's Insurance

Why do you need health insurance?

Science fiction writer William Gibson probably phrased this best: "People who feel safer with a gun than with guaranteed medical insurance don't yet have a fully adult concept of scary". What he means by this is that if you get sick in the United States or get hit by a car or sustain any kind of illness that requires a hospital stay of several weeks or more then you're looking at just horrific financial consequences where certain procedures can cost almost 100 grand in certain hospitals and only $7000 at another, according to that well known socialist rag Forbes Magazine, if Sicko isn't your cup of tea. Truth be told, if you're uninsured and get sick in the United States you're risking financial ruin.

What kind of health insurance should I get ? Here's the thing: Even though that's a common question there really isn't a common answer. If you're an American, and now that you're required to get health insurance, you might want to try the Affordable Healthcare website where you can get your questions answered here:

https://www.healthcare.gov/get-answers/

Is there a penalty if I don't buy health insurance coverage?

The answer to that question is yes. There is a tax penalty if you're caught not getting insurance. And just for the record: other countries don't force you to buy in. They just offer a service so good that you would be silly not to get it (France's door to door doctor visits come to mind.). But that could change in several years in 2016 if the Republicans take over the presidency and the US Congress. On the other hand, it looks like the Affordable Care Act is doing its job and actually lowering the rates of the uninsured. Bottom line: if you're young and healthy, then the decision to eat the tax penalty isn't entirely foolish, although it might be cheaper just to buy the cheapest plan. If you're over 40, when your body starts breaking down and also when your luck begins to wane, you'd be foolish not to get the healthcare you need.

Do you have to buy auto insurance?

The answer to this question is "Yes" in 48 states and no in two others: New Hampshire and Virginia. Vehicle owners in New Hampshire must satisfy a personal responsibility requirement and car owners in Virginia and Mississippi can choose to pay an uninsured motorist bond of about $500. Every other state requires you to have it and it's getting harder to get away with not having it. If you're caught driving without auto insurance, then you can lose your driver's license, usually at least for three months for the first infraction. You really have to buy auto insurance.

What's the best kind of car insurance to buy?

Well a lot of it depends on your age and your accident records. As a general rule, if you're under 21 you pay through the roof. Teens can really add a lot to the home's auto insurance. But there are all kinds of online tools, if you've seen those Progressive ads about a million times then you know that you can compare coverage between the many companies that offer auto insurance. Generally, the more you pay the better coverage you get. But always shop around you might find some fantastic deals.

Do I need to buy renter's or homeowner's insurance?

Well you don't have to buy renter's or homeowner's insurance but if you've ever been robbed or if your home has a leaky roof or needs some other shockingly expensive repairs, then you'll feel a lot better about things if you're insured. There's no worse feeling than having your possessions stolen and having no way to replace them. With that stated,

you kind of have to know your situation. If you can count on one hand the times you've been robbed, or you live in a relatively safe neighborhood with an effective community watch and a visible police force, then maybe you don't need renter's insurance for example. But keep in mind that really good renter's coverage can be around 20 bucks per month and not only protects your goods from being taken from your apartment but also your car. Also, if you lose your home due to an accident like fire, some insurance provides you with rent for a year. As always shop around and know your own situation.

Homeowner's insurance is a different animal entirely. If you've made an investment in a house then it would be foolish not to have homeowner's insurance. For one thing, homeowner's insurance can literally save you 10s of thousands of dollars in home repairs. How does that work? A leaky roof might cost the uninsured several thousand dollars. If you have homeowner's insurance it's entirely covered. Homeowner's insurance is almost a must have. There are even Public Adjustors in many states that will help you find coverage in your plan.

Are there other kinds of insurances?

This was an attempt to answer common questions about three major kinds of insurance coverage. But there are all kinds of insurance plans out there that cover flooding, burial, credit, business interruption insurance, legal expenses, pollution insurance, pet insurance, nuclear incident insurance, tuition insurance, just a bunch. As always, you should research carefully to see what kind of insurance needs you have and how much it costs. There's never been more information about pricing thanks to the Internet.