Individuals and companies looking for the right insurance can get different types of insurance. But wherever they are in the world, this popular financial tool serves an important purpose: protecting their hard-earned wealth and their loved ones. In this article, Business Insurance lists the different types of insurance.
This is part of our customer education process, and we encourage insurance agents and brokers to share this article with customers to help them sort through the different coverages available. Here are the main types of insurance that most industry experts believe are worth buying and how each type of insurance works in different parts of the world.
1. Car insurance
In most jurisdictions, drivers are required to have at least a minimum amount of insurance to legally operate a vehicle. Getting caught driving unattended can result in severe penalties and may affect future eligibility for insurance.
UNITED STATES
In the United States, almost all states require drivers to have the following coverages, such as Triple-I Insurance:
Personal Injury Liability: Covers medical and legal expenses related to injury or death caused by the driver. Property Damage: Pays if the owner’s vehicle damages someone else’s property, as well as legal fees brought in a lawsuit.
Medical Pay (Med Pay) or Personal Injury Protection (PIP): Covers medical bills for injuries sustained by the legal guardian and their passengers in an accident. Some policies also reimburse lost income.
Uninsured/Underinsured Motorist (UM/UIM) coverage: Pays for injuries sustained by the insured and their passengers if they are hit by an uninsured or underinsured motorist. Canada
Canadian provinces and territories have their own rules and regulations regarding compulsory insurance. Since everyone implements a different car insurance policy, the requirements are also different. But there are also similarities. These are:
Third Party Liability: Covers legal costs if the policyholder is responsible for an accident that causes injury, death or property. Car / Uninsured Motorist: Provides coverage if the policyholder or their passenger is injured or killed by an uninsured driver or in a hit and run accident. But unlike in the US, this also covers damage to the car insurance. Accident benefit: pays for medical treatment and financial compensation if the legal guardian is injured in an accident and funeral expenses if they die from their injuries, regardless of who is responsible . It works the same way as Med Pay or PIP in the United States. United Kingdom
In the UK, the government requires drivers to take out liability insurance. Like other liability insurance in other countries, it does not cover damage to the insured vehicle.
Australia
Australia requires drivers to carry at least one type of insurance – third party liability (CTP) insurance. Also known as green insurance in New South Wales or transport accident compensation (TAC) in Victoria, CTP insurance covers the driver’s costs if others are injured or killed. in a traffic accident. This type of policy, however, does not cover injuries to the driver and their passengers, or damage to the vehicle or any property. This type of insurance is paid when car owners renew their car registration. Read more: Find cheap car insurance and how to lower your quote
2. Health insurance
Health insurance contracts aim to help policyholders pay for health care costs by covering a portion of the professional and hospital fees incurred by the policyholder. Since each country implements a different public health care system, the level of need for private health care plans varies.
UNITED STATES
Due to the high cost of health care in the United States, purchasing health insurance is essential for many Americans to obtain necessary health care. According to the government’s health insurance exchange website HealthCare.gov, health insurance comes in different forms to meet the different needs of policyholders.
Among the types of fonts currently on the market are:
Exclusive Provider Organization (EPO): A managed care plan where services are covered only if doctors, specialists or hospitals are part of the plan’s network, except suddenly. Health Maintenance Organization (HMO): Limited coverage and care provided by physicians employed by or under contract with an HMO. Preferred Provider Organization (PPO): Allows policyholders to pay less for health care if they choose to seek treatment from providers in the plan’s network, although they may also have access to doctors, hospitals and out-of-network providers without referral for additional fees.
US health insurance plans must cover a list of “essential health benefits”. This is the result of the regulation of insurance plans under Affordable Healthcare (ACA).