How Many Different Types of Insurance Are There?

Whether it be to protect our home, our finances or our health, insurance products are one of the most common things purchased by individuals. With so many different types of insurance product available, finding the best one for our needs can sometimes be difficult. So what types of insurance are available? And how can you make sure that you are investing in the right one?

The UK insurance industry is said to be the largest in all of Europe, demonstrating the vast scale within which these products are offered. Insurance products are available on everything from mobile phones to our lives; here is an overview of some of the most common insurance products:

Home Insurance

Home insurance is designed to protect our houses and personal possessions from damage and theft. Comprehensive home insurance will cover both of these aspects, offering the highest level of cover for our homes. Contents insurance will only protect possession held within the property whilst buildings insurance will cover the physical structure of the building. Despite the name, home insurance is also available for businesses and workplaces, especially in the form of buildings insurance.

Car Insurance

Perhaps the most common form of insurance, car insurance protects drivers and their vehicles whilst on the road. Car insurance is a legal requirement for all drivers and is available in a number of different formats. Fully comprehensive is the highest level of cover whilst third party insurance is the lowest. Other vehicles, such as motorbikes and vans, are also legally obligated to have sufficient insurance but may be subject to different premiums and fees than cars.

Life Insurance

Life insurance is a product which offers a monetary payment in the unfortunate event of a person’s death. This money is used to help grieving friends and family members pay funeral expenses, alleviating their financial burden.

Travel Insurance

When taking a holiday or trip away from home travel insurance policies are taken out in order to offer the travellers financial protection. This is used to help people pay for any healthcare services they may need to use whilst away and helps to keep their holiday stress free. Travel insurance policies can either be purchased as a one-off product, for the duration of a particular trip, or can be purchased in the same way as other insurance products for frequent travellers.

Pet Insurance

Pets are often considered to be part of the family and it is for this reason that their health can now be protected with pet insurance. This insurance product is purchased in the same way as others, with people paying a monthly premium for the cover. This is then used to help pay for veterinary bills and other such expenses in the event that the animal suffers from an illness or is injured.

Of course these are not the only insurance policies available, with many others being offered. Understanding these products is therefore vital in making sure that people select the right policy for their situation.