Purchasing insurance is an important aspect of daily life for new immigrants in the United States. What are the common types of insurance in daily life in the United States? What essential insurance knowledge should new immigrants be aware of?
Experts from WorldWay Immigration analyze that there are five types of insurance most closely related to the daily life of new immigrants in the United States: homeowners insurance, health insurance, auto insurance, life insurance, and commercial insurance.
1. Homeowners Insurance
Homeowners insurance is the type of insurance most closely related to the life of new immigrants in the United States. The most relevant type of homeowners insurance for the general public is Homeowner Insurance. If a property is rented out, Tenant Insurance (Fire Policy) should be purchased. The coverage of Homeowner Policy is quite broad; in addition to comprehensive coverage for the home itself, this insurance also includes liability for accidents caused by personal activities. Therefore, not only homeowners need to purchase this insurance, but also those who rent apartments can join the ranks of insured individuals.
Homeowners insurance includes:
1. Damage caused by fire
2. Damage caused by theft
3. Damage caused by lightning
4. Damage caused by vehicle intrusion or aircraft crash
5. Damage caused by falling objects
6. Damage caused by windstorms
7. Damage caused by vandalism or riots
8. Damage caused by plumbing issues
9. Damage to personal property inside the vehicle
10. Damage to personal property taken outside
Except for damages caused by floods, earthquakes, and tsunamis, almost all other disasters are covered by this insurance. The cash compensation amount does not exceed one hundred dollars, securities do not exceed five hundred dollars, and jewelry and watches do not exceed five hundred dollars. Valuable items such as artwork and fur products valued over five hundred dollars must be registered separately and classified as property insurance, with additional premiums paid.
2. Health Insurance
The costs of seeing a doctor and hospitalization in the United States are relatively high. Without insurance, a serious illness could deplete a lifetime of savings. Generally, American companies offer health insurance benefits, as group insurance through company accounts results in lower premiums. Some companies cover the entire premium, so employees do not have to pay out of pocket.
However, since the insurance coverage varies among different companies, it is important to check whether the company insurance includes maternity and dental treatment costs. Those without company insurance should seek to purchase general family health insurance. Families with many children are more likely to visit hospitals, and not having insurance is equivalent to wasting hard-earned money. Health insurance in the United States is further divided into three categories based on coverage: medical insurance, dental insurance, and income replacement insurance.
3. Auto Insurance
Auto insurance in the United States is not mandatory; different states have different regulations. If purchasing a car requires borrowing from a bank or loan company, buying insurance is a necessary condition for the loan, in which case full coverage must be purchased. If not borrowing from a bank, one has the right to choose between full coverage or just liability insurance.
Generally, full auto insurance includes the following six main components:
1. Bodily Injury - compensation for injuries caused to others;
2. Property Damage - compensation for damage to others' property;
3. Medical Payments - payment for medical expenses incurred by others due to one's own injury;
4. Uninsured or Underinsured - compensation for losses when the other party has no insurance or insufficient coverage;
5. Collision Deductible - compensation for repair costs of one's own vehicle due to collision;
6. Comprehensive - comprehensive coverage.
4. Life Insurance
In the United States, life insurance has become an important safeguard for individuals and their families. From presidents to ordinary citizens, while alive, people use bank funds, and upon death, they rely on insurance company funds. Life insurance in the United States is generally divided into two main categories: whole life insurance and term life insurance.
5. Commercial Insurance
To cover losses from commercial litigation, companies purchase commercial insurance, which is generally divided into the following four categories:
1. Property - refers to the company's property, which is compensated for damages caused by natural disasters such as floods or theft. The content is similar to homeowners insurance;
2. Workers' Compensation - workers' compensation insurance is mandatory; if employees are hired, this insurance must be purchased. In the event that an employee is injured while working, the insurance company is responsible for compensating the employee's losses;
3. Liability Insurance - liability insurance is the most concerning type of insurance. In recent years, there has been a surge in lawsuits against corporate entities in the United States, with a representative case being the judgment against the Pinto model manufactured by Ford Motor Company. Due to design flaws in the fuel tank leading to passenger fatalities, the U.S. court ordered Ford to pay compensation of up to three million five hundred thousand dollars. Generally, the U.S. government has strict requirements for products, so product liability insurance is highly valued in the United States;
4. Commercial Auto - this refers to insurance for vehicles used for commercial purposes, such as taxis, delivery vehicles, and postal vehicles.
