The Most Basic, Simplest, And Cheapest Form Of Insurance

  • John A. Osborne
  • Jan 02, 2023
Small Business Insurance Michigan

Insurance is a way to protect yourself and your belongings from unexpected events that may cause financial loss or damage. However, with so many insurance options available, it can be overwhelming to choose the right one. If you are wondering which is the most basic, simplest, and cheapest form of insurance, this article will provide you with some insights.

Before we dive into the specifics, let’s clarify what we mean by “basic,” “simple,” and “cheap” in the insurance context. Basic insurance refers to a policy that covers the minimum requirements for a specific type of insurance. Simple insurance is easy to understand and does not require complicated paperwork or processes. Cheap insurance is affordable and does not put a strain on your budget.

Health Insurance

Health insurance is one of the most basic and essential types of insurance. It covers medical expenses such as doctor visits, hospitalization, and prescription drugs. If you have health insurance, you can access medical care without worrying about the cost.

The simplest form of health insurance is a basic plan that covers only the essential health benefits required by law. These benefits include ambulatory patient services, emergency services, hospitalization, maternity and newborn care, mental health, prescription drugs, rehabilitation, laboratory services, and preventive and wellness services.

Health insurance can be affordable, especially if you qualify for government subsidies or have a low-income. You can also choose a high-deductible health plan, which has lower monthly premiums but higher out-of-pocket costs.

Car Insurance

Car insurance is another basic and essential type of insurance. It covers damages and injuries resulting from car accidents, theft, or vandalism. Car insurance is mandatory in most states, and driving without it can result in heavy fines and legal consequences.

The simplest form of car insurance is liability insurance, which covers damages and injuries that you may cause to other people or their property. It does not cover damages to your own car or injuries to yourself. Liability insurance is relatively cheap and can save you from financial ruin in case of a car accident.

Other types of car insurance include collision coverage, which covers damages to your car in case of a collision, and comprehensive coverage, which covers damages to your car from non-collision events such as theft, vandalism, or natural disasters. These types of insurance are more expensive but offer more comprehensive protection.

Renters Insurance

Renters insurance is a type of insurance that covers your personal belongings in case of theft, fire, or other types of damage. If you are renting a house or an apartment, your landlord’s insurance does not cover your belongings. Renters insurance can also cover your liability in case of accidents or injuries that happen in your rented property.

The simplest form of renters insurance is a basic policy that covers only the essential benefits. These benefits include personal property coverage, liability coverage, and additional living expenses coverage in case you need to move out temporarily. Renters insurance is relatively cheap, with an average cost of around $15-20 per month.


In conclusion, the most basic, simplest, and cheapest form of insurance depends on your specific needs and circumstances. Health insurance, car insurance, and renters insurance are some of the most essential types of insurance that everyone should consider. By choosing a basic, simple, and affordable policy, you can protect yourself and your belongings from unexpected events without breaking the bank.

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