Insurance is becoming more and more important in today’s society. Whether it is car insurance, home owner’s insurance or life insurance, chances are you probably have at least one kind of insurance policy, if not several. However, despite the pervasiveness of insurance, many people still do not understand all of the ins and outs of insurance.
Insurance is generally divided into two types, general direct insurance and life insurance. General direct insurance is the type of insurance we are most familiar with. General just means that it is not a life insurance policy. Sometimes these policies are called property and casualty insurance. They are called direct because the insurance provider pays directly to the insured. Contrast this with a life insurance policy, where the insurance provider pays a beneficiary rather than the insured.
One of the most common types of general direct insurance is car insurance. In 2013, the average American household will spend $1,157 on car insurance. All states, with the exceptions of Virginia, New Hampshire and Mississippi, require car owners to have some form of car insurance. The owner of a car insurance policy typically pays a monthly fee to the insurance company, called a premium, in order to maintain the policy. The value of the premium paid monthly is usually determined by a combination of factors, including the type of vehicle, the age and gender of any covered drivers, their past driving history, and the location of the vehicle.
Another important form of general direct insurance is health insurance. Unlike car insurance, health insurance is not nearly as common. In fact, it is estimated that 15.7% of Americans do not have health insurance. As many as 43.8% of non citizens in the United States do not have health insurance either. Hispanics are the racial group with lowest rates of health insurance. California, New York, Texas, and Florida have the largest population of uninsured. Recently, the Federal Government has enacted a number of reforms aimed at promoting health insurance. However, it is too early to measure their effect.
If you would like more information on insurance, the internet is a great resource. There you can find more information on both general direct insurance and life insurance. Many sites feature auto insurance tips that can save you money. Other sites may be able to give health insurance tips such as where you can find more affordable health care. You can also figure out what the best insurance companies are in your area for your insurance needs.