What is personal insurance and do I need it? | finder.com
Young family at the park

Types of personal insurance

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

Consider the coverage you need to fit your family and lifestyle.

Protecting your health, property and your family’s future can mean the difference between money trouble and financial security. Finding the right policy depends on your income, dependents and needs.

What is personal insurance?

Personal insurance is any insurance that protects you from having to pay out of pocket for accidents, illness or damage to your property. To get insurance, you agree to pay a monthly or annual premium in return for a payout when you need it.

Types of personal insurance

Personal insurance can provide protection and peace of mind for you and your family. You can buy multiple policies separately or save money by bundling a policy with one insurer. Which types of insurance you need depends on your income, dependents and lifestyle.

Find an insurance company that meets your needs

Car insurance

Car insurance is important when you’re on the road, no matter who’s to blame for an accident. It covers damage to your car in an accident in exchange for regular payments. Basic coverage includes:

  • Bodily injury that covers the cost of another person’s injuries from an accident you cause.
  • Property damage that covers damage you cause to someone else’s property in an accident.
  • Personal injury covers medical services after an accident, regardless of fault.
  • Uninsured motorist covers costs caused by a driver if their insurance can’t pay enough.

Learn more about car insurance

Home and renters insurance

Home, content and personal valuables insurance can be tailored to meet your specific requirements. No matter if you own the home yourself or if you are renting from a landlord, you will find this type of insurance policy can be structured to fit in with your particular needs. Home and renters insurance can:

  • Provide a payout for your valuables in the case of a break in or damage.
  • Protects you if someone is injured on your property.
  • Pay for damage caused by a storm or other accident.

Learn more about homeowners insurance

Life insurance

The most basic type of life insurance pays a lump sum benefit to your beneficiaries when you die. That money can be used to:

  • Pay for funeral costs.
  • Pay off your mortgage and any other debts.
  • Cover the loss of your income and help with day-to-day expenses.
  • Pay for your children’s education.
  • Cover any other extra expenses your family might have

Learn more about the types of life insurance

Travel insurance

Travel insurance is great for vacations, business trips, or anytime you plan on traveling away from home. Travel insurance can protect you if you need to:

  • Cancel your trip unexpectedly.
  • Receive urgent medical care.
  • Replace items if you lost your luggage on the flight.

Learn more about landlord insurance

Disability insurance

Disability insurance, also known as income protection insurance, pays a percentage of your income if you’re temporarily or permanently disabled and can’t work.

Disability insurance can:

  • Help you pay for nursing care and physical therapy not covered by your health insurance.
  • Cover some or all of the cost of renovating your home to fit your current needs and lifestyle.
  • Pay for day-to-day expenses if you’re unable to work.

Learn more of the benefits of income protection insurance

Critical illness insurance

Critical illness insurance pays you a lump sum benefit if you’re diagnosed with a critical illness such as heart disease, cancer or stroke. Insurers may have different guidelines for which medical conditions qualify, so check the fine print before purchasing a policy.

Critical illness insurance can:

  • Pay for copays, deductibles and medical expenses not covered by health insurance.
  • Pay for physical therapy and in-home nursing care.
  • Cover bills and other expenses while you’re unable to work.

Learn more of the benefits of critical illness insurance

Landlord insurance

If you own a property to rent out, then landlord protection insurance is a valuable tool to have in your insurance portfolio. Landlord protection insurance can insure you against:

  • Financial loss if your tenant misses rent, steals or damages your property.
  • Legal liability claims made by anybody on the property who suffers an injury.

Learn more about landlord insurance

Compare insurance companies

Name Product Roadside assistance New car protection Accident forgiveness Available states
Optional
All 50 states
Save up to 31% with safe driver discounts and bundling all your rides in one convenient policy.
Optional
AZ, CA, IL, NJ, OR, PA, VA, WA
Drive less than 30 miles a day? Save on the coverage you need with pay-per-mile insurance from Metromile. Get a low monthly rate then pay just a few cents per mile. Available in AZ, CA, IL, NJ, OR, PA, VA and WA.
All 50 states
Enjoy having your own dedicated agent to help you get the best discounts and coverage.
Optional
All 50 states
Car insurance through Liberty Mutual will give coverage options for almost any situation.
AZ, AR, CO, DE, GA, IL, IN, IA, KY, LA, MD, MI, MS, MT, NE, NM, ND, OH, OK, OR, PA, SC, TX, UT
Root offers simple, affordable insurance that’s ideal for good drivers. Try the Root app for 2 weeks and see how much you could save. Available in 24 states.
All states except AK, DE, HI, MT, NH, VT, WY
Esurance offers a modern online and mobile experience that helps you take your insurance on the go. Available in 42 states.
All 50 states
Backed by nearly 100 years in the business, Farmers Insurance aims to offer options and support to help you find the coverage you need.
Optional
CA, IL
A new company with a minimalist approach to insurance. Find basic coverage, low rates and online-based service.

Compare up to 4 providers

Name Product Flood coverage Fire coverage Storm coverage Replacement options Available states
Actual cash value
All 50 states
Invest in affordable insurance that protects your home and your property from damage no matter where you live.
Replacement cost, actual cash value
All 50 states
Protect your home and belongings and save even more by bundling insurance with Allstate.
Replacement cost, actual cash value
AZ, CA, CT, DC, GA, IL, IN, MD, MI, NV, NJ, NY, OH, OR, PA, TN, TX, VA, WI
Enjoy straightforward pricing, transparent flat fee from this completely digital insurer.
Replacement cost, actual cash value
All 50 states
This online marketplace does most of the work for you, matching you with quotes from 12 highly rated home insurers.
Replacement cost, actual cash value
All 50 states
Enjoy great rates and wide coverage with USAA. Available to military members and family.

Compare up to 4 providers

Name Product Issue Ages Coverage Range Medical Exam Required
20 to 60 years old
$100,000 to $8,000,000
No
Term life insurance with no policy fees and the freedom to cancel anytime. Simple application process that can get you approved for coverage instantly.
18 - 85 years old
$10,000 to $10,000,000+
Depends on provider and policy
Compare quotes from 16 life insurance companies side by side.
18 - 64 years old
$100,000 to $3,000,000
No
Customized term life insurance policies up to $3 million, no medical exam required.
18 - 80 years old
$50,000 to $25,000,000
Depends on provider and policy
Get a quote within minutes from more than a dozen insurers.
20 - 85 years old
$100,000 to $1,000,000
Depends on policy
Get a term or whole life insurance quote from Fidelity Life - starting as low as $15/day.
21 - 54 years old
$50,000 to $1,000,000
No
Affordable 2-, 10- and 20-year term life insurance policies. Instant quotes and no medical exams.
20 - 80 years old
$25,000 to $10,000,000
No
Quickly get a quote for coverage with this marketplace, which compares term & whole life insurance policies from 45+ carriers.

Compare up to 4 providers

Name Product Trip Cancellation Emergency Medical Expenses Baggage Coverage Trip delay
100%
$15,000
$500
$500
Essential travel coverage — with the option to customize — that can protect the cost of your trip.
$10,000
$1,000
$100
Protect the cost of your flight and choose the coverage amount that meets your needs — trip delay protection included.
$50,000
$2,000
$1,000
Budget-friendly policy designed for international and domestic travelers who want medical protection. Trip cancellation and trip interruption not included.
$20,000
$1,000
$600
Annual policy that offers affordable protection, but doesn't include trip cancellation or trip interruption.
100%
$15,000
$750
$500
Basic policy with coverage that includes trip cancellation insurance, tourist health insurance and baggage insurance.

Compare up to 4 providers

Bottom line

Getting insurance to cover your risks can protect you from a financial hardship if the unexpected happens. Consider your lifestyle, risks and income to determine which insurance is right for you.

Frequently asked questions

Picture: Shutterstock

Was this content helpful to you? No  Yes

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site