Insurance has evolved over the years into little more than a commodity, an intangible service presented to consumers by agents as something imperative to our existence. Unfortunately, they seldom offer an explanation as to why we genuinely need coverage, which is what I plan to investigate in this paper. My parents faithfully remit payment to the insurance company each month for our family’s varied insurance policies, but seldom do they see a return on their investment. When they pay our water and electric bills, we can visibly see that we are receiving something for our money, and our mortgage payments allow us to continue living in our home.
Insurance coverage, on the other hand, is drastically different. How frequently does an insurance company give back to its clients? Unless a natural disaster such as a tornado or hurricane occurs, we are at fault in an accident, or we need to be hospitalized, we do not benefit from our insurance coverage. We are plagued with uncontrollable, unanticipated problems and situations that cause worry and stress for those of us who have not properly prepared by squirreling away money. The best way for us to prepare for these setbacks is to invest in insurance so that we will not be faced with the stress of not having anyone to turn to when disaster strikes.
Insurance is extremely important to me as a new driver. I want to know that someone is available to give me expert advice should I have an accident, regardless of whether or not it is my fault. In its most basic form, car insurance has been mandatory for drivers since 1927 (“When Did Auto Insurance Become Mandatory?”). Having been designated “mandatory,” insurance of all types is no longer viewed as a friend but as an unwanted and unnecessary companion. We should not approach buying insurance this way. We should instead realize that insurance agencies are looking out for us; they’ve got our backs, walking along beside us and offering their knowledge and advice to rescue us from situations that could leave us in despair.
When paying our monthly bills, we tend to group insurance payments in with our living expenses, those that are required for day-to-day living, such as water and electricity. Insurance, however, falls into a different category because we don’t use it every day, nor even every year, but we do need it when a catastrophe happens.
Unexpected accidents can happen not only while driving but also while simply walking around the neighborhood. A friend of mine was savagely attacked by a dog while taking a stroll. The dog lunged at her face, causing severe injuries to her nose and mouth. The dog owner’s home insurance covered the emergency room bills, two surgeries, and awarded her money for pain and suffering, costs that would have devastated him had he not been insured. Homeowner’s insurance typically covers all accidents and damages that happen in or to a home and anyone injured by something connected to the home, such as a pet. Situations like these cannot be predicted, but they can be protected thanks to insurance coverage.
Here’s how coverage works: After selecting the insurance company that I believe will benefit me the greatest, I sign a contract stating that I will pay a predetermined amount each month for one of their agents to assist me with any problem that might arise within the company’s specialty. I invest my money in our friendship, trusting the company to have saved a portion of my monthly payments for me so that when I am in trouble, it will help me out by paying most, if not all, of the expenses incurred in the situation.
The reason why I invest my money in insurance rather than save it on my own is because the insurance company will pay for any damages for which we have agreed on in the contract, regardless of the amount of money I have already paid them. For example, let’s say that six months ago I purchased full premium coverage on my vehicle, which is valued under $13,400. The monthly insurance payment is $120, which includes a $100 deductible and a maximum payout of $13,300 by the insurance company. I am involved in a car accident and am at fault (Bernardo). Because I have already paid $720 in monthly payments, I am now required to pay only the $100 deductible. Therefore, I have spent a mere $820 to cover a few thousand dollars’ worth of damage. It is easy to see in this situation that purchasing insurance when all is going well will not only save money in the long run but will save stress and worry as well.
I hate nothing more than having to do everything myself. Insurance coverage, not only the contract but also the agents offering the contract, brings relief by assuring me that I am not alone in dealing with a situation. Even though money does not solve every problem, it does bring the help and assistance I need in trying situations. It offers me a backup and a shoulder to lean on in my distress over what could happen if I were not covered. Because I cannot handle everything on my own, my insurance, the money I have set aside with an insurance company to be used for emergencies, plus any extra that was promised to me by the company, is only a phone call away. I make it a habit to keep all my insurance cards in my possession to ensure this is the case.
Insurance provides me with the knowledge that someone else is involved in my sticky situation and presents me with the assistance I need to overcome it. It allows me to plan how to pay for damages before a terrible event ever happens. Both auto and homeowner’s insurance save me the trouble of finding ways to pay off large medical bills that may otherwise burden me in the future. Insurance companies exist as a safeguard against unavoidable accidents and provide me with an alternative plan to prepare for them. Now that I understand why insurance is necessary, I will never be without the protection that only insurance coverage can provide.
Bernardo, Richie. “Collision Insurance Coverage: What It Covers; Costs; Deciding to Buy It.” WalletHub. Richie Bernardo, 1 Oct. 2014. Web. 25 Oct. 2016.
”When Did Auto Insurance Become Mandatory?” Auto Insurance Compare Cheap Online Auto Insurance Quotes. Auto Insurance, 28 Oct. 2011. Web. 24 Oct. 2016.
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