US Insurance (2026)
Auto, home, health, life, travel, pet — what you need, what to skip.
US households spend roughly $6,400 per year on insurance on average (Bureau of Labor Statistics CES). Much of it is necessary; some is over-bought; a few high-impact categories (umbrella, disability, life) are under-bought. The decision matters because insurance is usually the second-largest expense category after housing. Below: what each type does, who actually needs it, and where to get the most coverage for the least money.
What do you need to cover?
Auto
Required in 48 states. Liability, collision, comprehensive.
Compare auto →Homeowners
Required by mortgage lenders; $1,915 US average.
Compare home →Health
Marketplace, Medicare, employer, short-term.
Explore health →Life
Term vs whole. $500k term costs $25/mo at age 35.
Compare life →Travel
Cancellation, medical, evacuation. 4–10% of trip cost.
Travel basics →Pet
Dogs $45/mo, cats $28/mo. Insure when young.
Pet insurance →Do you need it? Decision table
| Insurance | Required? | Who needs it |
|---|---|---|
| Auto | Yes, 48 states | Anyone who drives |
| Homeowners | Required by mortgage lender | Anyone who owns a home |
| Renters | Often required by lease | Anyone who rents; cheap at $15/mo |
| Health | No federal mandate; 6 states mandate | Everyone |
| Life | Not required | Anyone with dependents |
| Umbrella | Not required | $300k+ assets |
| Travel | Not required | International travelers, cruise-goers |
| Pet | Not required | Anyone who can't absorb $3k+ vet bill |
| Disability (short/long term) | Often offered via employer | Most working adults under 55 |
Questions answered
Auto protects your car and others from accidents. Homeowners/renters protects your home and belongings. Life pays your dependents if you die. Health covers medical bills. Travel covers trip-related losses. Pet covers vet bills. Umbrella stacks on top of auto/home for extra liability.
If you have $300k+ in total assets (home equity + investments + savings), yes. A standard $1M umbrella policy costs $150–$400/yr and protects against a lawsuit exceeding your auto/home liability limits. Cheapest peace of mind available.
Yes, and usually save 5–25%. Common bundles: auto + home, auto + home + umbrella, auto + life. Check separate quotes too — sometimes two different insurers beat a single bundle.
Term life (for a young healthy person) is the cheapest per dollar of coverage. Pet insurance (accident-only) is cheap in absolute terms. Health insurance is most expensive but subsidized for many Marketplace enrollees.
Strongly recommended. Renters insurance averages $180/yr and covers your belongings, liability, and loss-of-use. Landlord's policy does not cover your stuff. Many landlords now require renters insurance as a lease condition.
Three factors: price (get 5+ quotes), customer satisfaction (J.D. Power rankings, NAIC complaint index), and financial strength (AM Best rating A- or better). Cheapest insurer with an A complaint index is usually your winner.
Mostly yes, especially from major carriers' own sites. Third-party aggregators (The Zebra, NerdWallet, Policygenius) shop across multiple carriers at once — fast and usually accurate. Always verify by going to the cheapest carrier's site directly before binding.
Credit-based insurance score — calculated from your credit report data but with different weights than FICO. Used in 47 states for auto and home rating. California, Hawaii, Massachusetts and (since 2021) Michigan prohibit it.
At every renewal (at least annually). Also after life events: marriage, divorce, home purchase, new car, baby, retirement, move. A 15-minute review can save hundreds.
Appeal internally first (written request with supporting documents). If denied again, file a complaint with your state's Department of Insurance. For life and health claims, you can hire a public adjuster or attorney on a contingency basis — they take 10%–25% of any recovery but have real leverage.