3 Types of Insurance Every Clever Girl Should Have
At a minimum, below are 3 types of insurance every Clever Girl should have:
1. Health Insurance
In the U.S the cost of health care is very expensive, so having health insurance (offered through your employer or privately) is a must. Seeing a doctor can run you anywhere from $100 to $300 out of pocket for an initial consultation, or more if you need a procedure done or require serious medical attention.
Having a baby, depending on where you are located in the states can run you anywhere from ~$5000 to $10,000 for a natural birth and upwards of ~$35,000 for a c-section. Having health insurance allows you to get the right care when you need it and reduce the financial burden of having to pay completely out of pocket for care.
2. Auto Insurance
First of all, not having auto insurance in the united states is illegal and punishable by law. You must have auto insurance. Secondly, not only does auto insurance cover the cost of repairs incurred from a car accident after you meet the deductible requirements, it also covers any hospital bills you or the other driver involved in a collision a might incur.
Auto insurance can also cover the cost of a car rental in the event that your car requires repairs that will take time. It can also cover any lawsuits that might arise from a car accident and protects you from costs incurred from a collision with an uninsured driver.
3. Rental or Home Insurance
If you own a home or are renting your residence, having home or renter's insurance is essential. It protects your home against damages to the house itself, or to possessions in the home including theft or damage from natural disasters.
If you live in an area prone to flooding or other natural disasters, you can add on specific natural disaster insurance to your insurance coverage to further protect your home. Imagine if you had to rebuild your house or replace everything you have in your home out of pocket? That could be financially devastating!
Other types of insurance to consider are:
- Life Insurance to protect your loved ones by paying out a sum of money upon your death or after a certain period of time.
- Disability Insurance to protect your income in the event that you cannot work for a period of time.
- Scheduled Personal Property which provides coverage over and above typical homeowners' insurance to cover things like jewelry etc.
- Home warranty plans are a type of insurance that will repair and replace appliances and systems in your home as needed due to normal wear and tear.
Having Insurance is very important. You are not throwing money away every month when you pay your insurance premiums. Insurance is much needed protection that will give you peace of mind and save you a ton of money from any expensive life scenarios that may come up.
Bola Sokunbi is the founder of Clever Girl Finance and she's passionate about helping women take control of their money so they can live life on their own terms.