When you are standing in the nearest smartphone store and contemplating over the new smartphone or car insurance, it can feel pretty enticing to choose the smartphone. And it is understandable. Car insurance does not feel as useful as the power of a smartphone–it is a necessity in this day and age to own one. But you do not need to latest and greatest smartphone. Instead, practice self control and balance the two. Buy a decent smartphone and buy car insurance. The next time someone sideswipes (hopefully, that does not happen) your car you will wish you had insurance.

But that is not the only situation you would need insurance for. There are several types of insurance to consider, even insurance for renters. Let us break them down for you and their benefits.

Going Without Car Insurance is like Having Two Accidents

First off, it is a requirement to have auto insurance (except you, New Hampshire and Virginia), but in those states you will still get hit with a fee. Either way, you are paying someone. It might as well be for car insurance.

To soften the blow to your wallet, consider finding insurance that best fits with what you need and cross-reference that with your state’s laws. You might be able to get away with dropping one coverage, but not in all states.

So what does car insurance get you? Well, it is entirely abstract until something happens. You are paying into a company that will take care of specific issues under specific circumstances so long as you keep paying for it. It is like rainy day fund.

You might be telling yourself, “I am a safe driver. I do not need it.” That is an entirely valid statement. The problem then is not you, it is other people. You might be a safe driver, but what about the other driver who was distracted with texting? An act that makes you 23 times more likely to crash. Over 16,000 accidents every single day, equating to 6 million accidents by the year’s end, and that is just in the United States. That is millions. Millions of unique individuals with their own quirks and distractions, and not all of them are safe drivers like you.

Insurance for Renters

This is a strange idea to consider. At first, it seems silly to buy insurance for a place you do not own. Until you consider it is not so much about insuring the place, but rather, insurance the stuff within. You see, damage the house incurs from outside forces, like someone else damaging it, the person involved in the damage is liable. Landlords tend to fix problems that arise from normal use of the place. After all, a portion of your rent goes towards making fixes to the place. But what if someone breaks in? The landlord does not take care of that. He can’t be expected to.

This is where insurance for renters comes into play. Someone breaks into your home and steals your belongings. Who replaces them? If you bought renters insurance, the company can replace those items if evidence was presented to confirmed theft was taken place, especially a police report. Believe it or not, renters have been take advantage of the coverage renters insurance can offer, so much so that it went up from 29 percent back in 2011, to 41 percent by the time 2016 arrived. There is a need for it, considering many individuals carry expensive computers, tablets and especially smartphones.