How will I know what kind of insurance to get?

It all depends on what your needs are. You buy life insurance on wage earners to replace lost wages in case of that person’s death.

You buy auto insurance in various ways (liability, comprehensive, collision) to satisfy state minimums, of course (mostly liability insurance there), but also to replace or repair the car in case of loss due to collision (if it’s an expensive car—you wouldn’t buy ‘collision’ for a beater), and ‘comprehensive’ to replace losses from “other than collision”, including vandalism, theft and other “loss events”.

You buy homeowner’s insurance to protect the value of your home and contents when you buy your home—or renter’s insurance to cover the value of your apartment’s furnishings and other contents—and you buy various forms of liability insurance to protect yourself from lawsuits if you have a relatively high net worth and can be sued for your assets for any number of reasons.

Then there are various forms of business insurance that I won’t even get into. Health insurance, too.

In short, you buy insurance to protect yourself against loss. What do you have that would hurt to lose? That’s what you buy insurance for. A good insurance agent will help to guide you through the marketplace. (And a very good insurance agent will guide you into buying “term” life insurance instead of “whole life”, and help you to invest your savings so that eventually you can even do away with life insurance.) You can look up “whole life” and “term insurance” on your own. That’s your homework.

@CyanoticWasp : I know what insurance is, but there are so many options. Are some better than others…? Or, what?

Options regarding… what? Some companies are better than others, just like with any other product or service. I read your original question to be “what type/s of insurance do I need?”

I don’t know what you’re asking now.

@CyanoticWasp: The OP is asking how they should make their decision. For example, sure they may need life insurance but which company should they choose, what should they pay attention to, what are some reasonable costs, are there red flags to watch for from a company and how can I find out how they’ve helped their customers before and how many of those customers are satisfied?

Those kinds of things.

I would pay close attention to their pay-out/settlement reviews. If they have a lot of complaints, the low price won’t do you any good.

Find a good broker…one that a trusted friend or relative uses and let them provide you with quotes. Go with the best priced and highest rating….usually AAA or better will ensure you have a reputable company. The biggest make many people make is to not constantly shop their insurance policies and should be done regularly and in my experience never wait more than 3 years to look for better deals as insurance companies are always welcoming new business with good deals and a savvy broker will help you find these deals.

You auto home and health insurance policies will vary greatly with the level of deductible and there again a good broker will help you assess your financial situation to best guide you for what deductible amount is best for you.