Insurance is designed to protect you from loss or damage in the event something out of the ordinary happens, like a kitchen fire or a busted main pipe. A lot of times however we end up paying for coverage that we will never really use and most likely don’t need in the first place.

How can you tell what type of coverage you need, and what kind you don’t?

We’re going to discuss a few types of insurance that are must-haves and which ones you can live without.

With so many types of insurance available it can be hard to pick the ones you will benefit from the most. We have narrowed it down to just the basics here to make it easy.

1) House Insurance

Home insurance is first and foremost. This is the number 1 most important type of insurance you must have to protect your family and their future. Your home is your largest investment and home repairs are costly, especially when it comes to structural repairs. Your homeowner’s policy can help cover repair costs and even give you an allowance for temporary housing while the repairs are being done.

2) Car Insurance

Car insurance is the second most important type of insurance to have. If you drive a car you need insurance to be in compliance with laws and regulations for safe driving. Auto coverage is mandatory in most areas and definitely something everyone needs.

3) Travel Insurance

Some people might not realize the importance of travel insurance but delayed or cancelled flights, lost luggage, and extra expenses due to prolonged wait times can ruin a family vacation. It’s nice to know that if something like that happens you can be reimbursed for those costs through your insurer.

4) Health Insurance

In this day and age you do not want to be without health insurance. One trip to the emergency room and you could be in financial distress. Health care costs are rising and if you are uninsured you could end up paying a lot of money out-of-pocket.

5) Life Insurance

Life insurance is another must-have type of coverage, especially if you have a family. You want to be assured that your family is taken care of if anything ever happens to you. Some people might see this as an unnecessary expense, but it’s worth it for the peace of mind to know that all of your expenses will be paid and your family will be provided for in the event that you are no longer around.

These are the 5 most important types of insurance coverage that everyone should have, and they are the ones that provide the most coverage for any situations that may come up. The AA Ireland Insurance is one solution for getting all the coverage you need in one place. They offer home, car, travel, and life insurance all under one roof for ease and convenience.

Additional Types for Secondary Coverage

• Renter’s insurance
• Disability insurance
• Long-term care insurance

Renter’s insurance is good for those who don’t own their residence because it covers personal belongings from loss or damage not covered by the landlord’s policy.

Disability insurance is also good to have because it can offer benefits for short-term and long-term disability. This is especially beneficial if your household lives on one source of income. If you are ever injured and have to be off work for a period, those payments can help tide you over until you’re back on your feet.

Long-term care insurance is something that is good to have but you may not need it right now. It helps to cover some of the costs if you have to go for in-patient nursing care at a facility.

Types of Insurance You Don’t Need:

• Home warranty insurance
• Mortgage Life Insurance
• Life Insurance for Children
• Identity theft insurance
• Credit Card Insurance
• Cancer Insurance

There are insurance agents who may try to convince you that you need these, but for the most part they are unnecessary and you’d benefit more by starting an emergency fund with the money you’d pay out in premiums.

Child life insurance, which some people find a bit morbid, is a waste of money unless the child is earning an income that the family is dependant upon. These brochures are sent out to new mothers who most likely throw them in the bin.

Identity theft insurance can’t really prevent it from happening. You can do more for yourself than what it can do for you. Credit card insurance is nice to have if you are out of work and unable to pay your bill but it can get quite expensive to keep up, especially if you have a balance.

Ultimately, only you can decide what type of insurance is best for you and your family situation. We’ve laid out the most important ones, a few secondary ones that may be beneficial, and ones that you can skip altogether to give you the best coverage for most life events.