We constantly see messages about insurance, and saving money, and all sorts of craziness. But why exactly do we need insurance? Is it simply because we have to show the officer proof if we get pulled over? Or because that’s what mom and dad always did, so it must be right? While both of those reasons are true,  insurance is an important piece of your financial security.

Insurance is a way to help spread the risk of a loss from one to many. When you buy insurance, you pay a monthly premium to the company. At the same time, hundreds of others are doing the same thing. So if you have an accident, rather than having to pay for the entire loss yourself, the insurance company uses the money earned from premiums to offset the cost and pay for the damages.

What can that do, besides save you from paying the body shop? In addition to paying for physical damages, the insurance company may also pay for medical bills and liability costs associated with an accident, rather than risk your personal assets. Also, if you are involved in a crash with an uninsured driver, most companies have coverage that can help offset costs that they may not be able to cover.

According to the National Highway Traffic Safety Administration, there are more than six million car accidents in the U.S. each year. The National Safety Council estimates the average property damage cost is approaching $10,000 per accident, which does not include medical payments for any injured parties.

The same holds true for other aspects of your life—tornadoes, lightning or fire may damage your home; your livestock or farm equipment may be stolen or tampered with; your crops may suffer hail damage. There are a wide array of insurance offerings that can address most circumstances you may have. If you have any questions, please contact us and we can review your current coverages, and offer advice for any changes that might need to be made to get you the best coverage you deserve.

Each insurance policy is unique. While some generalities can be made, each situation should be reviewed on a case-by-case basis. This is not considered advice on any specific insurance matter. Please contact an agent to discuss any concerns you may have.