Insurance is one of those things that is rarely thought about until it is needed. When it is needed though, being properly covered can make the difference between weathering an accident and being ruined financially.

There are many types of insurance available, all offering policies featuring varying levels of coverage. With so many options from which to choose it can sometimes be difficult to know which insurance policies are right for you. The following are four types of insurance nobody should be without.

LIFE INSURANCE

It may be unpleasant or even difficult to think about, but there's going to come a time when we will all need life insurance. Funeral costs are high, and nobody wants to saddle their family with this financial burden.

In addition to funeral expenses, loss of income may affect families following the death of a breadwinner. Life insurance can help to mitigate this loss of income. If you are married, and/or have children and do not have life insurance you should shop policies right away.

CAR INSURANCE

Almost every one of the United States requires a vehicle to be insured before being operated on public roads. While older cars may require only a minimum amount of coverage, more valuable vehicles are often more fully insured against things like theft as well.

There are several types of car insurance available:

LIABILITY

This protects the policyholder in the event of an accident that results in bodily harm or damage to personal property. It does not cover the driver or passenger.

PERSONAL INJURY PROTECTION

A personal injury protection policy will cover the driver and/or passenger/s in the event of bodily harm resulting from an accident.

COLLISION

Whether you are at fault or not, collision insurance covers damage to your car resulting from a collision.

COMPREHENSIVE

Collision insurance has you covered in the event of an accident, but what happens if falling construction debris damages your car? In order to be covered in such a case, you will need to purchase a comprehensive policy.

UNINSURED OR UNDERINSURED DRIVER

This policy will protect you in the event you should you be in an accident involving a driver who is underinsured or not insured at all.

DISABILITY INSURANCE

Experts agree that everyone should own disability and income protection insurance. Disability insurance pays a lump sum if you're unable to work due to injury. Income protection insurance will pay up to seventy-five percent of your salary monthly. Gavin Harrigan from Quantum Finance (https://www.quantumfinance.com.au/) says that getting income protection insurance allows you to remain financially stable if any accident or injury should take you away from your job for some time. Much like life insurance, income protection insurance protects you and your family should you be injured and unable to work.

Disability insurance policies can cover partial and long-term disability whether the injury is temporary or permanent. Disability policies are relatively inexpensive and especially as one in three Americans will be disabled at some point during their lives.

Nobody likes to contemplate the idea of being seriously injured and unable to earn. Should such a thing happen disability insurance and income protection insurance can make all the difference in the world, as can the peace of mind that comes with knowing you're covered financially.

HEALTH INSURANCE

Healthcare costs today can be extremely expensive, and in some cases even prohibitory. The price of medical care and treatments accounts for sixty-percent of all personal bankruptcy cases in the United States.

When choosing health insurance there are a number of factors that bear consideration. For example, someone who is young and single will likely require less coverage than will the elderly or those with chronic health conditions. Also, you'll want to make sure your doctor participates in any plan you are considering.

If you're in good health and don't see your doctor often, you can save money on your health insurance premium by opting to pay higher deductibles and copays when you visit the doctor. Conversely, if you see your doctor often, you may want to choose a plan with a higher premium but with lower deductibles and copays.

Aside from perhaps a little grumbling as we pay our monthly or yearly premiums, most of us rarely think about our insurance policies and the peace of mind they offer. On those unfortunate and unforeseen occasions when they're needed however, there is nothing that can offer the financial and emotional relief that being properly insured can.

Health, Disability (including income protection), Automobiles, and Life insurance are four types of insurance policies everyone should have.