Which Insurance Policies are Mandatory?

There are different types of insurance that you can take out. A few insurance policies are compulsory from the government. Also, numerous insurance policies are not compulsory but are useful. In this article, we explain which insurance policies are mandatory and which are not.

Which insurance policies are mandatory?
Health insurance (basic insurance)
Your health insurance consists of basic insurance and possibly additional insurance. The basic insurance is compulsory for every US person aged eighteen and older. Health insurers must accept everyone for the basic insurance.

Car insurance (third party liability insurance)
Is there a car in your name? Then you are obliged to take out at least a third-party liability insurance. With that, you are insured for damage that you inflict on others with your car. The liability insurance is mandatory for your car, but also for example for motorcycles and scooters.

Building insurance
You only need a home insurance if you have an owner-occupied home. This insurance is legally not compulsory, but mortgage lenders often demand it. That is why the building insurance also comes under the compulsory insurance policies. With a home insurance you are insured for damage to your home. For example, due to fire, water or storm.

Motor insurance
Do you have a motorcycle? Then you are legally obliged to insure it. Just as for your car, you also have to take out third-party liability insurance for your car or motorbike.

Which insurance policies are not mandatory but are useful?
Many insurance policies are not legally required but are useful to conclude. Whether this is the case depends on whether you can pay for possible damages yourself. For example, in addition to the mandatory third-party liability insurance, you can extend your car insurance with cover limited to the hull or full hull. You can also take out several additional insurance policies for your health insurance, for example for physiotherapy. You can also think of the following insurance policies:

•    A travel insurance for unexpected costs during your vacation.
•    A cancellation insurance for when you have to cancel the holiday.
•    A contents insurance for your belongings at home.
•    Legal assistance insurance for legal assistance during conflicts.
•    A liability insurance for damage that you make to others.
•    A funeral insurance for the costs of your funeral.
•    A term life insurance so that the next of kin can, for example, pay off the mortgage upon death.
•    A caravan insurance to insure your caravan against, for example, storm damage.

If you want to see more regarding the compulsory and non-compulsory insurance policies? View our site “Praetorian insurance company” about insurances categories. If you like my article, don’t forget to comment below or you can send me more suggestions.

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