Main Types of U.S. Insurance

Insurance in the United States covers a wide range of needs, but six main categories form the foundation of the market. Each type protects against different risks, has unique costs, and follows specific regulations. Understanding these categories helps policyholders choose coverage that matches their life stage, financial situation, and responsibilities.

Business Insurance

Small businesses spend about $1,281 annually on general liability. Policies often cover professional liability, workers’ compensation, and cyber risks, with total costs ranging from $500 to $3,000.

Life Insurance

Term life costs about $25–$40 per month for $500,000 coverage, offering affordable family protection. Permanent policies add lifelong coverage with savings or investment features, often used in financial planning.

Renters Insurance

Although renters insurance can cover $20,000–$30,000 in personal property, only about 41% of U.S. renters have it. Average annual premiums are around $180.

Home Insurance

Average annual homeowners insurance is about $1,383, but costs vary widely depending on location and natural disaster risk. Policies typically cover property damage, liability, and additional living expenses.

Health Insurance

Under the Affordable Care Act, health insurance remains mandatory. Marketplace plans average $456 monthly, while employer-sponsored family plans cost about $7,739 per year.

Car Insurance

Auto insurance is required in 49 states. Annual premiums average $1,348, ranging from $800–$2,400 depending on age, state, and driving record. Coverage protects against collision, theft, and uninsured motorists.