Comparing Auto Insurance and Health Insurance
Health insurance and car insurance are both necessary in the United States, but what is the difference between the two, aside from the fact that they cover different things? In this article, we are going to compare the two types of insurance to come to a better understanding of them.
Both health insurance and car insurance serve the purpose of protecting you and providing coverage by charging a monthly fee, whether you take out a claim or not. Both types of insurance use similar language, but the similarities between health insurance and car insurance stop there.
How you obtain Health Insurance vs. Auto Insurance
Most people get health insurance through the company they work for, which allows them to receive special benefits and lower rates. On the other hand, most people purchase their car insurance through their personal accounts after analyzing the different companies that offer car insurance. If you decide to purchase health insurance through your personal account, your car insurance may offer you a discount for bundling your health insurance with your car insurance.
With health insurance, you are covering the physical health of a person. This means that if your son gets sick and you have to take him to the hospital, you are going to need health insurance to pay for the medical expenses. If you do not have insurance, the hospital may not be able to take care of your child.
You are probably going to have to use your health insurance more frequently than you use your car insurance. If this were not the case, it would mean that you get into car accidents or have car troubles frequently.
How often you use Health Insurance vs. Auto Insurance
Another principal difference between health insurance and car insurance is that car insurance is only necessary for the driver of the vehicle, while health insurance is required for everyone according to the Affordable Care Act passed during President Obama’s administration.
Every state in the US requires car insurance except Vermont and New Hampshire. If you drive a car in the US in any state except these two and you do not have car insurance, a police officer can give you a ticket. This does not happen with medical insurance; you will not see agents on the street handing out fines to people who do not have health insurance. However, if you decide not to purchase health insurance, you need to know that you will have to pay a fee or qualify for an exemption when it comes time to pay your taxes. Exemptions to this fee are detailed here.
The Importance of Preventative Care
The objective of health insurance is to keep people healthy. Preventative healthcare is free, while it is inevitable that your car tires will wear out and that you will need an oil change just by driving your car, and car insurance do not cover these costs. Because of this, it is important to take advantage of routine checkups that medical centers offer for free.
Despite the differences, it is important to have both types of insurance coverage if you live in the United States. Both health insurance and car insurance will protect you in the case of emergency.
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