The Differences and Similarities Between Auto and Life Insurance

The Differences and Similarities between Auto and Life Insurance

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Unpredictability is what makes life so thrilling, yet so, unpredictable. Accidents happen every day and protection is vital. Two ways of protection are obtaining automobile insurance, as well as health insurance. There are several similarities and differences between auto and health insurance, both are equally important to obtain.

One similarity between auto and health insurance is that they both provide piece of mind to the one being insured. Besides that, selecting the right coverage and plan for each individual or family is important. Not all insurance companies cover the same things, and not each individual or family needs the same types of coverage. Shopping around for coverage is the most important thing to do and making sure to have the most coverage possible will make life easier in the long run. Also, not all insurance policies cover everything, and for auto insurance they consider anything not covered to be part of an exclusion contract clause. For health insurance, if something is not covered through the insurance, the person being treated will have to pay out of pocket. Another similarity is paying a certain amount for each type of insurance, and then being covered by the insurance companies above the set amount. For auto insurance it is called a deductible. For most insurance companies, the deductible is five hundred dollars that the insured has to pay. In the case of health insurance, the insured has a copayment. There are copayments for prescriptions, doctors’ appointments, specialists, hospital visits, etc. The price of the copayment varies for each insurance company. For both, you have to pay the set amount, and the insurance pays the rest.

Even though insurance coverage for both auto and health are important to have, they are also very different with coverage. Auto insurance covers not only the person driving, but anyone else in the vehicle, anyone involved in the...