Core Insurance Types
01.Auto Insurance Mandates
Almost all states require drivers to carry liability auto insurance, which pays for damage to other people if you cause a crash. Collision and comprehensive coverages protect your own car. Avoid carrying only the state minimum liability, as a major lawsuit can target your personal savings.
02.Homeowners and Renters Insurance
Homeowners insurance is required by mortgage lenders to protect the building. Renters insurance is cheap (often $15/month) and protects your personal belongings inside a rented apartment from fire or theft, while providing liability coverage if someone gets hurt in your home.
03.Life Insurance for Families
If you have dependents, purchase Term Life Insurance. It pays a set cash amount to your family if you pass away during the term (usually 20 or 30 years). Avoid expensive 'Whole Life' policies; buy cheap term insurance and invest the rest of your savings.