How many types of insurance? What are required by law?

  • by Eugene
  • Sep 02,2018
  • 11 answers

I am familiar with car insurance, health insurance, home insurance, etc. I am just wondering how many type of insurance are there in the world. I feel like all insurances are costly and unnecessary. I also like to know which insurances are required by law. I know I need to have car insurance to drive, but that's all I know.


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Insurance Answers (11)

STEVEN F 2 months ago

It is impossible to state how many types of insurance there are, because they INVENT new ones, sometimes on a case by case basis.
The only ones I am aware of being mandated by law in the US are automobile LIABILITY insurance and medical insurance.
Home insurance is COMMONLY required by the terms of a mortgage, and comprehensive insurance on a vehicle is commonly required by the terms of a loan against the vehicle.

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Insurance Pickle.com 2 months ago

If you feel like insurance is costly, just imagine how costly it would be to pay for the things insurance pays for out of pocket. I'm guessing you feel it's costly and unnecessary because you can't wear it or park it in your driveway.
Nobody enjoys paying for insurance, but those with unexpected events are certainly glad they did. Generally, your view is shared by naive, young 20-somethings.
There's more types of insurance than room in this space to name them all....event insurance, contract insurance, flight insurance, insurance for vocal cords, insurance for jockeys, specific item insurance, shipping insurance, on and on...

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babyboomer1001 2 months ago

Boat insurance, motorcycle insurance, homeowners, renters, ETC - there are numerous types of insurance. Homeowners is required if there is a mortgage on the house. Some landlords require renter's insurance. You can insure your jewelry, expensive collections - all sorts of things.

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StephenWeinstein 2 months ago

Health insurance is required if you can afford it and have enough income to be required to file a tax return. It is not required if you don't have enough income to afford it or you don't have enough income to be required to file a tax return.
Health insurance is very much necessary. The average uninsured person winds up costing the rest of the country $10,000 or more a year for the medical bills that don't get paid because the person doesn't have the money to pay them.
As you said, car insurance is really needed only to drive or own a car. You aren't absolutely required to have it; you have another option: don't drive or own a car. In other words, you aren't required to have it; you just aren't allowed to own or drive a car if you don't have it.
And car insurance is even more necessary. A car accident caused by a person who doesn't have insurance can cost ten million dollars or more.

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Paladin 2 months ago

a good portion of the car insurance you pay is required by the lender, not the law. the same is true of homeowners insurance

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kswck2 2 months ago

Home, Auto, Business. Fire, Flood, Ship, Reinsurance, Products Liability, there are many more.

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Dan B 2 months ago

Countless types of insurance. When business has a contest that is highly unlikely that someone will win, they can buy insurance to cover it in case it happens. Example: $1,000,000 to anyone who can guess what NFL team will score 100 points in a regular 4-quarter game (no over time).
Insurance that is required by law is automobile liability insurance (or optionally posting a $50,000-$100,000 bond). Collision/comprehensive is required as a condition of getting an auto loan. Homeowner s insurance is required as a condition of getting a loan, not by law. Workman s comp is required by law. Most insurance is optional - depends if the individual or business wants to accept the risk of loss.

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oklatom 2 months ago

Multiple types of insurance. Of course health insurance is necessary, car insurance is not unless you have a car, home insurance necessary only if you are making loan payments. Depends of what risks you are willing to take, and it is something you need to look at.

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OneDrop 2 months ago

Plenty.
Pet insurance, travel, renters insurance, contents, yacht, life but in most jurisdictions only motor insurance is compulsory.

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Flower 2 months ago

Life insurance, property insurance, casualty insurance, accident insurance. The only one required by law in the U.S. is auto insurance.

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Elaine M 2 months ago

Renters
Boat
Business
Mortgage
Malpractice
etc.

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