The global insurance industry is worth almost $5 trillion.

And no wonder.

One unexpected setback could put you under if you’re not insured. One car accident, one root canal, one health scare or surgery could mean the difference between being financially stable or being in debt.

This is especially considering that 28% of U.S. adults have no emergency savings!

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One in four do have a rainy day fund, but it’s only enough to cover three months’ worth of living.

That’s why we need to have several types of insurance. Insurance policies can pick up the difference for when our life encounters these moments.

Which ones do you need?

That greatly depends on your lifestyle. But there are a few general insurance coverage types that many of us could benefit from having.

We’ll cover those here.

1. Health Insurance

Health insurance is one of those policies that may seem annoying to have when you’re healthy but is absolutely essential when something goes wrong.

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One of the primary considerations with health insurance policies is the deductible.

A deductible is an amount you pay before the insurance starts kicking in. This number can be higher or lower, which alters the price you pay monthly as well. A higher deductible typically means a lower premium and vise versa.

Why do you even need health insurance, especially if you’re healthy?

Because one medical emergency could bankrupt you.

They are very expensive — there’s no way around it. And accidents happen all the time — missing the last step, twisting an ankle while skiing, falling and breaking a wrist. Those are some of the more affordable incidents. Other setbacks can end up putting you into medical debt.

Additionally, if you were to garner a severe injury, that could also mean staying home from work.

Your medical bills, plus your loss of wages, could have you spiraling into a situation you could’ve never foreseen. Because of this, it’s crucial to have health insurance now, before you need it.

2. Dental Insurance

Dental care is one of the most frequently skipped types of medical care.

13% of Americans forgo regular dental appointments because of their sometimes-high cost.

But dental insurance is relatively affordable.

The monthly premiums average $15-50 a month, or $180-600 per year. When you consider the high price tag for things like root canals, this is a small price to pay.

Dental insurance companies typically only pay for services up to a specific dollar amount, however. Most require you to pay out-of-pocket for anything beyond an agreed-upon number. In general, a basic coverage plan looks like this:

• 100% coverage for cleanings, X-rays, and exams
• 80% coverage for procedures such as fillings or extractions
• 50% coverage for crowns, root canals, implants, and other significant procedures

The primary purpose of dental insurance is to undergo regular preventative care in an attempt to avoid more severe problems.

3. Auto Insurance

In 2015, an astounding 13% of motorists — or one in 8 drivers — was uninsured.

Not only is this dangerous for you (and a potential person or property you come into contact with), but it’s illegal not to have it. Twenty U.S. states even have requirements for uninsured motorist coverage.

Auto insurance covers several vital factors of driving:

• Uninsured motorist coverage — in case you were ever to have an accident with an uninsured or underinsured motorist
• Collision costs, i.e., your car’s damages
• Property damage
• Bodily injury
• Comprehensive, i.e., things out of your control, such as a tree or electricity pole falling on your vehicle

Auto insurance works similarly to health insurance in its deductible policy.

The lower your deductible, the higher your premium, and vise versa.

Let’s run through one example of how deductibles work. Let’s say your deductible is $1,000.

If your car’s damage is $800, you’d have to pay those damages yourself, because you haven’t reached your deductible amount yet. But if the damage came to be $1,500, you’d pay $1,000, and your insurance provider would pay the remaining $500.

Regardless of if you want auto insurance, if you’re driving a car in the U.S., you’re required by law to have it.

And it will absolutely come in handy in the event that something happens, whether it’s your fault or not.

4. Homeowner’s Insurance

If you’re invested in a home, part of that investment includes covering it with a homeowner’s insurance policy.

While you may not think you need it, you’ll be happy you did in the event that something adverse happens. After all, one in fifteen people ends up filing an insurance claim.

The main coverages of a homeowner’s insurance policy is:

• Dwelling protection, or, the structure of your home
• Personal property protection
• Liability, in the event that someone injures themselves on your property, for example
• Other structures on your property

Each policy is different, and may not cover things like earthquakes or floods. This depends on factors like where you live and who your provider is.

Having a thorough discussion with an insurance agent can help you determine which coverage is appropriate for your home.

Which Types of Insurance Do You Need?

As we mentioned, you may not need every policy on this list.

For example, if you’re not currently renting a home or apartment, you can forgo renter’s insurance. It all depends on your lifestyle and what suits you.

Keep in mind that this list is certainly not exhaustive, and there may be types of insurance you need that didn’t make an appearance on this list. Make sure to consult with someone like an insurance agent for further advice.

Paying your insurance premiums with a credit card and then paying off the credit card is a great way to build amazing credit. It can also help you budget the cost of your insurance policy.

Check out this list of 2019’s best credit cards!