Dear ,
Do we really need insurance? There are insurance policies (1) for so many things! What ones are important?
In Tasmania I had a car. But no-one really explained to me why I needed car insurance! I finally learned about it and took out a policy for my second car.
As I regularly drove quite long distances, often at night, I chose a company that offered roadside assistance - if my car stopped working, they would come and help. (This was way before mobile phones, so I still had to go to the nearest house to call for help!)
I also had private health insurance. There is a Government Health System in Australia, but there are too many sick people and not enough public hospital beds. Private insurance means you can go to a private hospital and be treated sooner for non-urgent health problems.
With my insurance policies, I never had a claim. Well, nothing crazy. I used the roadside assistance two or three times, but my car never had major damage. And maybe because of my age, I never claimed anything from the private health insurance.
Did I waste my money?
Maybe. But I was happy paying for 'in case' something happened ... for peace of mind.
It may shock you, but they were the only two insurances I had 🫣. I rented a flat (2), so I didn't need house insurance and I didn't even insure the things in my house (contents insurance)!
Should I have had other insurance policies?
Maybe. Contents insurance might have been good.
There are possibly a few that you would recommend. I have heard of other insurances like life, education, dental, travel (which I have used), liability (3) and even pet insurance - clearly for pet owners.
I guess you have to think about the risks that an insurance policy covers and balance them with the price of the policy. And then decide what is important to you.
In Germany I have a couple of insurance policies besides Health Insurance, that I have to have.
So, what do you think - should we all have lots of insurance policies? Which insurance policies do you think are the most important and which would you never take out? To let me know, hit the 'Reply' button...
Have a great week 😀,
Andrea
(1) insurance policy - insurance 'contract'
(2) flat - British English word for 'apartment' (the word 'apartment' is used more in America).
(3) liability insurance - to cover costs when you accidentally damage something belonging to someone else, or accidentally hurt someone.
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