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Insurance is a subject many consumers discuss, but rarely with a happy tone to the conversation. Insurance is expensive, and it’s not always readily available. With the addition of Obamacare to the nation, it’s more difficult than ever to find affordable insurance, and many consumers are left without insurance as a result. Finding insurance is stressful enough, but it’s made more stressful when you aren’t entirely positive which insurance you need and which you don’t. This advice can help you on your quest to find the right insurance for the best price. Knowing what you need versus what you don’t makes it easier to search for comprehensive coverage for all your insurance needs.

Three Types of Insurance You Need

Homeowner’s insurance is a need. You cannot finance a home without it, and you cannot live without it even when your home is paid for. If anything happens to your home, can you afford to make the repairs or replace it all together? Probably not, and the simple fact is anything can happen at any time. Natural disasters, fires, break-ins, and even injuries. Your homeowner’s insurance policy covers more than just the basics. If someone comes to your home and falls down your stairs, they could sue. Without an insurance policy, you become personally liable for the damages you owe them. It can cause financial ruin without insurance.

Auto insurance is another must. This is for the same reason as homeowner’s insurance. Your financial future depends on being able to pay for damages caused by your car. If someone else hits you and they don’t have insurance, your insurance covers the cost of the damage. If you don’t have insurance, can you afford to pay out of pocket for the medical bills you’ve incurred or the repair or replacement to your car? Additionally, no bank will finance a car without auto insurance.

Health Insurance is the third must-have. You must have this insurance if you hope to stay financially stable. Even a simple doctor appointment for a fever can run you hundreds of dollars in cash if you don’t have insurance. Many people don’t have that kind of money. With the introduction of Obamacare, you are required by law to carry health insurance or pay hefty fines at the end of the year.

Three Types of Insurance You Don’t Need

Credit card insurance is not mandatory, and it doesn’t protect you as you might assume. You might have the option to choose this when you check out of any store or online, but it’s usually more money than it’s worth. The purpose of this type of insurance is for the company to make the minimum payment for you each month if your income is affected.

Child life insurance is another policy you don’t need. Unless your child pays for your monthly bills, insuring their life is not worth the money you’ll pay to do it. Financial experts recommend you not think about your child dying. Think of them living, their future, and their income. Put your money to good use and save it for their college, car, or wedding fund instead.

Fraud insurance for your credit card is another type of insurance you don’t need. Even if you’re worried someone might take your identity and run up debt in your name using your card, you shouldn’t worry. This is possible and it does happen, but you’re protected. The most you’ll be liable for is $50. That amount is significantly lower than the cost of the actual insurance for your card.

Insurance is a fickle subject, and everyone has an opinion regarding what you need and don’t need. You need insurance to cover you in case of a financial emergency, but you don’t need other types. The industry wants your money, so don’t give them more than they’re already getting by purchasing policies for things that aren’t financially pressing. Talk to your insurer about the types you do need, and move past the ones you don’t need to protect you from financial downfall. Save your money for more pressing things, such as living your life to the fullest.