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An overview

Car Insurance (also often referred to as auto insurance or vehicle insurance), homeowners insurance (which includes renters insurance and condominium insurance) and life insurance are the three types of insurance you probably need to buy for yourself. Health and dental insurance are generally still available as group coverage to employees through work.

Car Insurance is required in some form by every state. The amount of car insurance required can vary from state to state and the types of coverage you're required to have as part of your car insurance policy can also vary. That's why it's important to know the regulations in your state to make sure you meet the legal requirements.

Homeowners insurance coverage is required by every lender. As long as you have a mortgage, you'll need to have homeowners insurance. Even if you own your own home outright, you'll still want to have the financial protection of homeowners insurance in order to repair or rebuild your home should disaster strike. In some areas, you'll also want to have flood insurance or earthquake insurance as well. This is coverage is not included in your homeowners insurance and will need to be purchased separately. High wind damage insurance may also need to be purchased separately depending on where you live.

Life insurance is generally purchased as term life insurance. That means you purchase the insurance coverage based on a death benefit amount for a specific period of time. Your life insurance premiums depend on the amount of life insurance coverage (death benefit amount) you purchase, the term you choose (10 years, 20 years, etc.) and your general health.

The more you know about insurance and how to shop for it, the better value you'll get for your insurance dollars.

Whether you need car insurance, homeowners insurance or life insurance, comparison-shopping is the number one way to make sure you're getting the best deal. Premiums can vary from company to company for the same coverage.

By understanding the basics of how car insurance, homeowners insurance and life insurance work, you'll be a smarter shopper and be better able to judge what's best for your particular needs.

Since car insurance is the insurance most people need to buy, and the insurance that can vary the most in cost and coverage, that's where you should start your education and comparison-shopping.

It's not as painful as it sounds and checking out some facts about car insurance could save you hundreds of dollars a year on premiums.

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Answer Financial(R) Inc. offers insurance products and services through its licensed affiliates Insurance Answer Center(R) Inc. (California License No. 0B99714), Answer Center Insurance Agency, Inc., and other affiliates. Answer Financial is not an insurance company. Insurance plans and services are from insurance companies and other licensed insurance-related providers. Not all products available in all states. Rates subject to change.
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