Do we really need insurance?

Most people have insurance because it’s required by state laws or by a lender. But do you really know why insurance is necessary? The main reason is TO PROTECT YOURSELF in case of a devastating loss.

Insurance gives you PEACE OF MIND.

If you ask any licensed insurance agent the definition of insurance, they’ll probably tell you the textbook answer: The transfer of financial hardship from one party to another. But what does that really mean? It means the following:

Insurance company says: You pay me $X premium. If something happens, we’ll pay you to “get you back where you belong” up to the limits of your coverage.

Without insurance the losses can be devastating. There were homeowners in the recent Santa Cruz wildfires that lost their homes and didn’t have insurance. Many of those homes were custom built. Imagine how heartbreaking it must be to have to start from scratch. Is that something you can you afford to risk? Insurance payments may not bring back all the memories you have in that home, but it can get you started to rebuilding new memories.

Auto insurance can have similarly devastating results. You can be at fault in a car accident that causes major injury to the other party or causes damage to another vehicle. Without insurance, you can be sued and forced to pay for those injuries and/or damages. Where will that money come from?? If you’ve got a good income, or assets like a business or home, those can be garnished.

If you thought insurance was required by law…