What are the top 3 types of insurance?

While many types of insurance exist today, most households rely on three essential policies to protect their health, safety, and financial stability. Here’s what data shows are the most common and vital types of insurance in 2025.

1. Health Insurance

Health insurance is consistently the most widely held policy in the U.S. — more than 80% of adults carry it. This coverage protects against high medical expenses, covering doctor visits, hospital stays, surgery, and prescriptions. Without it, even minor medical emergencies can lead to five- or six‑figure bills.

2. Auto Insurance

Auto insurance is legally required in nearly every U.S. state. It provides liability protection if you cause an accident, and optional collision or comprehensive coverage for theft, weather damage, or vandalism. With driving being almost indispensable, this remains one of the most essential protections.

3. Homeowners or Renters Insurance

Most homeowners carry this insurance, which protects the structure of your home and your belongings from damage due to fire, storms, theft, or liability for injuries on your property. Renters insurance is rising in popularity—covering belongings and liability for apartment dwellers.

Why These Three Matter

These policies consistently account for the majority of insurance premiums and coverage needs across the U.S.:

• They cover health, autos, and homes, essential aspects of daily life

• They offer protection against risks that can cause financial devastation

• They are often required by law, lenders, or landlords

According to recent surveys, these are the most common types of insurance people have as of 2025, followed by life insurance and disability coverage.

When You Might Need More

Depending on your life stage and assets, you might also consider:

• Life insurance — especially if you support dependents

• Disability or income protection — for illness or injury that prevents work

• Long-term care or critical illness cover — valuable in later life

• Umbrella insurance — for added liability protection beyond standard limits

But for most individuals and families, the top three are the baseline of financial protection.

Final Thoughts

In 2025, the top three insurance types—health, auto, and homeowners (or renters)—are core protections for most Americans. They mitigate the biggest everyday risks and provide security when unexpected events occur. Everything beyond those is supplementary, based on your specific life, assets, or profession.