There are several good things about having health and car insurance. Having coverage can be the difference between being able to make it through an emergency and being inconvenienced or ill for an extended period of time. With insurance, your provider will pay for a certain portion of expenses you incur because of an illness or a car accident. Why is this a good thing? Not many people set money aside every month.

When a tragedy strikes, it can quickly deplete what emergency funds you do have. Often, emergency expenses exceed your monthly income. What happens when you total a $43,000 car? You have still have to pay off the loan, and you need a replacement car. Insurance covers the gap. Health insurance works the same way. When you need a medical procedure that costs thousands of dollars, you pay your co-pay and your percentage of the bill. Your insurance company pays for the majority of the expense. This can bring a $4,500 medical expense down to an affordable few hundred dollars.

Insurance also protects your assets. Say you’re throwing a party at your house and someone falls down the stairs. If the person doesn’t have medical insurance, you will have to pay for the expense because the injury occurred on your property, unless you can prove the person acted irresponsibly. While your health insurance won’t cover the expenses, your homeowners insurance might. If you’re in a car accident that injures another person, your coverage will pay for that person’s medical expenses.

Many people fail to realize all the ways insurance helps and protects a person. Once you realize the benefits to coverage, you can find the policy that works best for you. You can pick a higher deductible and a lower monthly payment or a higher monthly payments with a lower deductible. Regardless of the policy, you can get the protection you need.