Variables of Insurance: 101

Emily Ferreira, Managing Editor

Most people know what insurance is, but many have varying opinions on its importance. For some people, purchasing insurance is nothing more than betting on unfortunate events. For everyone else, having insurance coverage is simply a fact of life.

Insurance is a service that many of us use, but we may not understand all of the fine details that go into insurance companies and their policies. Insurance works very simply. The insured pays a premium over the course of his or her policy, and when a covered event occurs, the insurance company pays the expenses associated with that event.

Types of Insurance

There are many different varieties of insurance. Health insurance and auto insurance are the two most common. Most Americans have varying degrees of coverage from both.

Car insurance is the most common type of insurance, since most states require it to be carried by drivers. Car insurance insures a person’s vehicle when it is involved in an accident or is damaged in some other way. There are many car insurance policy types available for all drivers. Many people are comfortable with basic car insurance coverage, while many other drivers on the road prefer to have as much coverage as they can afford. 45 of the 50 United States require drivers to have at least liability insurance on their drivable vehicles at all times.

In America, health insurance follows closely behind car insurance in popularity. Most Americans get their health insurance through their employers. These policies are typically included in the employee’s benefit package and can include a wide variety of options.

For those people who are not provided with health insurance through their work, there are many private health insurance companies that offer extensive coverage. For those who cannot afford private policies, there are many government programs dedicated to helping people find health insurance coverage, especially for children and the elderly.

With the increasing cost of funeral and burial expenses, life insurance is always a good consideration. Like all other insurance plans there are many coverage options available for anyone interested in this type of insurance policy.

Renters insurance is a policy that is not very popular, but it should be. Many people are not aware of its significance. In the event of an accident, such as a fire, this insurance policy will reimburse the renter for the value of the things that are lost inside of their home.

Many renters assume that their landlord’s property insurance covers their own belongings. This is a widespread misunderstanding. The landlord’s insurance only covers the actual structure. A renter needs to have their own insurance policies, if they want their possessions to be protected from damage or destruction.

People can insure almost anything they want, if they can find an insurance company willing to work with them. Vacations can be insured with traveler’s insurance. Pets can have their own health insurance. Some celebrities have even insured the body parts that have made them famous. The options are limitless.

Finding a Responsible Insurance Broker

With all of the options available to the average consumer, it is not shocking that many people find insurance shopping to be overwhelming. Finding a responsible insurance broker can be one of the best ways to get help in making a sound insurance decision.

There are two kinds of insurance salesmen. One kind of salesman sells a specific type of insurance for multiple companies, while the other sells different policies from one specific insurance company. There are distinct advantages to using either type.

If a person is comfortable with a particular insurance company, because of a previous history or recommendation, then an insurance agent from that company could be the best option. When an individual wants to have all of their insurance coverage from the same company, an agent from a particular insurance company can help the individual save more money by selling them multiple policies.

If a person is interested in finding the cheapest insurance policy available from any insurance company, an independent insurance agent might be the best bet.

No two people are the same. Because of this, there are countless service options and discounts available that can be customized to suit anyone’s particular insurance needs. An experienced insurance broker can help each person wade through all of the options available and find the best insurance policy for his or her needs.

A responsible insurance agent will also work with someone to make sure he or she understands any policy they are interested in purchasing. While there are sharks in the world that are interested solely in their commission, most agents genuinely enjoy helping their clients get and keep the best insurance coverage.


Even though there are many different types of insurance, it is important for individuals to have some knowledge about various insurance options available, so they can decide which policies they really need. It is also a good idea to evaluate your policies from time to time to see if they are still meeting your needs. All it takes is one disaster to destroy someone’s financial security. Protecting yourself, your personal belongings, and your family with proper insurance coverage are all an essential part of surviving in our ever-changing world.

Auto Insurance Coverage Health Insurance Coverage Life Insurance Coverage Home Insurance Coverage

Compare Insurance Rates

Get Insuance Quotes

Find Insurance Agents
Join the Insurance Directory