For you to understand the purpose of insurance you will first have to ask yourself some difficult question, i.e.,
What if I was involved in an accident how would I settle my medical bills? My possible subsequent continuing
outpatient treatment? Or maintain my standard of living or a decent standard of living after the loss of
income due to my inability to work because of personal injury?, How will I pay for the living costs for my family and me until when I am in better health?
The answer is insurance for all the above. There are various kinds of insurance. General Insurance, Garage liability insurance, car, and precisely life are just four of the diverse examples of insurance policies that are accessible to the public. Insurance is a safeguard for the users against all the possible wrong things that can happen to them or their possessions.
In certain circumstances, particular types of insurance are legally required. All governments make it a
necessity for all car owners to have an insurance policy for each car that is owned by the business. In other
words, vehicle owners are legally required to buy an insurance liability policy to compensate those that you
have an accident with but will not compensate your losses. If you would want also to cover your losses, you
could buy a more comprehensive policy that will compensate for damages to both you and the 3 rd part in the accident; this policy can comprehensively cover medical costs and property/financial damages.
Therefore the basis as to why insurance is important for vehicles is that it covers you from having to pay
large sums of money in damages out of personal finances if you are found liable for the accident. Without
automobile insurance policy, you might lose all that you acquire, and go into debt to pay for damages.
Another type of insurance policy that is important is the house and contents insurance; the lowest policy level is often based on the probability level worked out by the insurance company.
There are options in policy lenders for homeowners to add up to this level of insurance to protect valuable
items, e.g., furniture, home fixtures and décor and other items against loss. Insurance policies will more often
than not extend to 3rd parties who may be affected on the premises should they find themselves in an
accident and sustain injuries. Therefore one of the most important reasons for insurance is to protect the
owner from legal actions that may arise from 3rd parties as well as to protect themselves from losses they
may incur as a result of accident or damages to their property.
In addition to home and content insurance, there are also other insurance policies. Some policies insure
against loss of income in case you are injured; there are business policies that can cover workplace
compensation or criminal activities by employees; there are high-end policies that can cover expensive and
unique items that have to be especially valued such as jewelry. All the above tell us why insurance is
essential to cover your property against loss.
One last note: be sure to learn more insurance, get a general insurance review and learn about various types
of coverage before you buy.