You can’t legally travel a foot in your big rig without insurance. But when it comes to personal insurance choices, many folks roll the dice. Economics is often the reason – insurance isn't cheap (and if it is, it may not be as good as you think). But life's curves make it worth trying to have some kind of coverage for “The Big Four” – health, life, automobile and home.

Company drivers may have the option to sign up for health insurance and other kinds of coverage through their employers, who usually pay part of the premiums. But owner/operators leased to fleets may be on their own. And those with their own authority may have to choose between the coverage necessary to stay on the road and running “bare” (that's insurance talk for having no insurance at all) on the rest. The results can be economically, personally and professionally disastrous.

At least with insurance, says Jayna Neagle, director of new media with the Insurance Information Institute (III), you may better be able to cope with the unexpected.

“You need insurance for the unforeseen events,” says Neagle. And the domino effect can apply. Imagine a crash in which your car is totaled and you're injured. Your injuries require a long hospital stay, so no cash is coming in. Once you've recovered, you have no car so you can't get to work. The medical bills pile up, and so do regular financial obligations. Suddenly, your life is in a tailspin.

Calculating Coverage

The rule of thumb for insurance premiums, according to the III, is that the total tab should represent about 6.5% of household expenditures. “That further breaks down to be 2.5% for health insurance, 2.2% for auto insurance, 1.1 for life insurance and .7% for homeowner's insurance,” estimates Neagle.

Even if insurance is a relatively small slice of the budget pie, high operating costs and the regulatory demands on truckers can make it difficult for some drivers to afford coverage, says Brenda Reynolds, medical benefits supervisor for the Owner/Operator Independent Drivers' Association (OOIDA).

Reynolds estimates only a fraction of members buy the organization's insurance products, which include comprehensive major medical and catastrophic-only medical policies, life insurance and dental coverage, disability, occupational accident and accidental disability and dismemberment policies. She recommends drivers, at a minimum, have catastrophic medical coverage.

Selecting the insurance options that meet the needs of each driver is an individual process. A 22-year-old single driver with no dependents would have very different needs from a 55-year-old with a wife, children and responsibility for extended family. Either way, coverage can be a safety net. “Running ‘barefoot' is dangerous,” says Reynolds. “And it's always the person who chooses to go without insurance who needs it first.”

Making Choices

According to some estimates, 44 million Americans have no health insurance, and it's no wonder. Premiums can be costly, says Neagle. "For health insurance, you may be able to reduce your costs by buying coverage through an association or signing up for your employer's plan.”

Another way to keep health insurance costs down is to join a health maintenance organization (HMO). It may limit choices but does provide a measure of care. Using public health facilities and community clinics for routine care such as immunizations and well-baby care is another option.

Insurance on your personal vehicle is another priority. "Auto insurance is regulated by your state of residence,” says Neagle. Prices vary widely, depending upon the amount of coverage you buy, the age of your vehicle, your driving record and the company you buy from, so shop around.

To keep rates down, consider higher deductibles and no collision or comprehensive coverage on older cars. Some cars have lower rates than others do, so do the research before you buy. Always ask about discounts, says Neagle. They can apply for everything from airbags and anti-lock brakes to having a young driver who makes good grades.

And then there's your home. "This is probably the least expensive insurance,” says Neagle, "and it could be the most important.” She estimates the average annual cost of this coverage at $420. "And that covers your home, the things in your home and liability,” says Neagle. Renters also should buy enough rental insurance to cover the replacement cost of their possessions.

How do you know what's enough? The first step is to estimate accurately the value of your home and its contents. If you're buying a new home, consider the insurance savings of buying an all-brick home. Installing a home security system, being a non-smoker and taking a high deductible can reduce rates, as well.

Truckers who are on the road for extended periods need to be aware that their long absences can impact their homeowners' coverage. Most insurers reduce or suspend coverage on dwellings that are unoccupied for long stretches, usually 30 days or more.

Neagle recommends truckers be forthright with their agents, if they fall into this category, and be prepared for adjustments that may need to be made in their policies or lifestyle.

Finally, there's life insurance. "If you're young and single, you might be able to do without this one,” says Neagle. But for a driver with a family or responsibilities for older relatives, it can be crucial. The III estimates you should purchase life insurance worth five to eight times your annual earnings.

Life insurance falls into two general categories. Term coverage is the least expensive because it's purchased for a specific length of time. Premium coverage is more costly but builds cash value, so it is also an investment.

Making the Best Buy

Insurance isn't a one-time, one-size-fits-all proposition. Each individual and family has different needs at different times, says Neagle. Talk with other drivers about the coverage they have, who provides it and whether they're satisfied with the service they receive.

"One way to reduce your overall costs is to buy everything from one company,” says Neagle. In any case, shop around frequently to be sure you're getting the best price. And as your situation changes – family responsibilities, children leave home or you get older – reassess your insurance needs.

Drivers at companies such as Cannon Express can buy some coverage through the fleet. That's good for drivers and the company, says Hanna Wiley, benefits coordinator.

One bonus to Cannon Express' benefits plan is that premiums are taken from pre-tax dollars, so drivers' taxable income is lowered. "Wouldn't you rather take the insurance than pay the taxes," Wiley says. "Sure it can be expensive, but nothing is free and it's a lot more expensive if you end up in the hospital.

"Our insurance benefits attract good drivers," she says, estimating that 95% of its 700 drivers are covered by its medical, dental, disability, life, cancer or vision insurance.

Reynolds encourages drivers also to consider disability coverage. "Disability insurance is the only thing that will supply an income if you're injured and can't work. A driver who wants to keep his house and feed his kids needs it." According to the III, the average worker faces a 14% chance of dying on the job, but a 21% chance of becoming disabled. This coverage can be expensive but can keep you financially afloat if you're unable to work.

Beyond the big four of personal insurance – life, health, home and auto – is a vast array of policies such as those below. Assess your personal needs before buying any of these:

Divorce Insurance: No, this doesn't protect your marriage from breaking up. Divorce insurance can be purchased by a custodial parent to cover the cost of child support in the event the non-custodial parent dies, can't work or involuntarily becomes unemployed.

Riders and Other Kinds of Coverage: Do you have an extensive and perhaps expensive collection of guns? Antiques? Beanie Babies? Chances are, your homeowner's insurance doesn't cover their full value. That's when you need a rider.

Boat: Boat coverage varies widely depending on whether you have a canoe or a cabin cruiser. Talk with your agent about the value of your craft before selecting coverage.

Flood: Floods can happen in areas not considered usually flood-prone. The cost rises with the likelihood of flooding, and comes in two separate parts, one for structures and another for contents. Renters may be able to buy coverage if their community participates in the National Flood Insurance Program

Computer Insurance: At home, your computer may be covered by your homeowner's insurance. That's not necessarily so on the road. Even if it does, it may only cover a percentage of the value or have a cap on how much it will cover. Consider coverage that picks up the tab for replacing lost, stolen or damaged equipment. A floater policy may be needed to cover the replacement value of your laptop when away from home.

Long-term Care Insurance: Neither Medicare nor your health insurance is likely to pick up the cost of nursing home care. To help ensure that, if you need to move to an assisted living or nursing home, you can afford the kind and level of care you need, consider long-term care insurance. There's an advantage in buying this early since the cost is lower. The older you get, the more expensive the premiums. *