When talking to a variety of people looking for insurance policies, it became apparent that despite the vast amount of information on the subject, very few of them understand the true importance of insurance. Most people only buy insurance because it is a legal requirement. For instance, they understand that insurance cannot be used on public roads. They therefore purchase the minimum amount of coverage necessary to avoid any problems with the law enforcement officers. One is not buying insurance to get the benefits, but to avoid the legal problems that could result from being caught driving uninsured.
This is also true for other types of insurance like insurance for business premises against fire. Many people purchase it simply because they have to before they can extend credit lines to business owners. If their premises are destroyed, they might not be able to meet their obligations. We see a situation in which one purchases insurance coverage against fire not because they want it or understand its importance but because they need to before they can get credit lines.
Ironically, the attitude towards insurance extends to health insurance. Many people won’t even consider taking out health insurance unless their employer offers it as a standard benefit. This is especially true in the United States where only a small percentage of Americans take out health insurance on their own.
Insurance is meant to be for your benefit. You should have at least a sufficient amount, regardless of your financial situation. Many people don’t realize that insurance can be a lifesaver when we are most vulnerable. Consider a person with just the minimum amount of car insurance coverage. This is, in most cases, limited coverage for injuries that one might cause to others and their property. If a person has only the minimum amount of car insurance and is injured in an accident, they will be responsible for their medical bills. They also may not have any insurance to cover the cost of the car. The worst part is that they might not be able to buy another car because of injuries sustained in an accident. This could lead to them having to deal with a difficult situation.
It is important to remember, however, that there may be others who are interested in you taking out insurance.