The process of buying insurance can seem like a heavy load. Many people are under-educated on insurance; but they all know one thing: They need coverage. Historically, that hasn’t always been the case.
Why has our society shifted this way? Is it tradition? Is it law?
It’s both. Even in the democratic/capitalistic society we live in, insurance is mandated by both tradition and law.
Traditionally being uninsured/under-insured is a recipe for financial disaster. Drive with state minimums on your car coverage? Boom, a 3-car pile-up suddenly has you facing bankruptcy. Not properly covered with your home insurance? Boom, one bad storm and you’re homeless. You went the cheap route on your business or commercial insurance? Yep, that’s right, one bad liability claim and you’re suddenly updating your resume. Even reading this now, you probably aren’t getting that worried though, because insurance has been ingrained in your head since before you ever thought about buying it. Everyone knows someone that once had a life changing event from not having the right coverage; and they made a point to make it very clear to learn from their mistake.