Reasons to Have Auto Insurance and Homeowners Insurance Policies

Automobile insurance

Do you have all the different types of personal insurance you need in life? Insurance can be tricky to learn about and find the best plans to make sure you are receiving the benefits for your money. There are a variety of different insurances you need to make sure you are protected in all the areas of life. From homeowners insurance, to auto insurance, to personal insurance, you shouldn?t opt out of any these insurances to save money in the short-term. Staying protected in case of any accident or emergency is essential in life.

Interested in learning more about different types of personal insurance and why they?re each important? Keep reading for more information on reasons why insurance plans can make a difference in your life.

Auto Insurance

If you drive a car, it is essential that you have auto insurance. This protects you in the case of an accident or injury that may occur when you?re driving or riding in a car. Car accidents occur quite frequently in the United States. To be exact, there are more than 6 million car accidents that happen every year throughout the country. While you hope that this never happens to you, statistics show that every 17 years, a driver will need to file an auto claim due to some type of accident.

There are a few common types of reasons why people file an auto claim with their auto insurance policy. The first most common reason why someone files a claim with their auto insurance is related to fender benders that occur when they?re driving. Filing a claim can help sort out the costs for damage to cars and repairing them. The second common reason why a driver may file a claim is theft. If anything is stolen from your car, you want to make sure to file to your insurance company so you can be compensated for that loss. The third common reason is related to whiplash. This can occur if you are in a car accident. Whiplash is a common side effect that may take some time to heal from.

Homeowners Insurance

Similar to car insurance, another form of personal insurance you need to have if you are a homeowner is homeowners insurance. There are plenty of homeowners insurance options, but you need to make sure you find the policy that is right for you, your income, and your home situation. Depending on where you live and what type of home you own, your homeowners insurance needs will vary. Always take into consideration your location when picking the right homeowners insurance policy. All-in-all, there are around eight different homeowners policies to choose from when you are selecting a policy.

Cost for homeowners insurance is directly affected by four main factors. The first factor that impacts your homeowners insurance cost is how much it would cost to rebuild your home if it was destroyed. This could be related to your location and whether you live near tornado zones or hurricane zones. Another factor is your home?s age as this could affect how sturdy it still is. The third factor is related to fire protection ratings in the neighborhood you live in. The fourth consideration is related to your personal and neighborhood claims history.

When you?re in an auto accident, it is important to file immediately especially if you are injured or your car is damaged. This is similar for damage to your home. Check with your policy to see the specifics, but generally there is a 14-day reporting window if your home is damaged. File within this time to get the most benefits and to make sure that you don?t miss out on the opportunity to receive what you deserve from your policy.

Many individuals from an Insurance Information Insitutute survey conducted in 2016 state that hoemowners wish they would have read and understood their homeowners policies more before signing. Be sure to review everything that is covered and not covered before signing your contract.

Do you have these different personal insurance policies? Let us know in the comments about your experience filing for claims for auto or homeowners insurance.