Insurance is definitely a topic worth exploring very closely since it is probably in folks overal top 3 expenses (next to mortgage and taxes).
That book i mentioned in another thread "More wealth without risk" by charles givens, gave quite a bit of money saving tips for insurance, in particular auto andhomeowners insurance. Let me try to remember a few tips from it.
1. Go for 24-hr insurance. Example: An independant disability plan you get yourself will likely cover you 24hrs a day. The disability insurance you find in your auto policy (PIP) only covers you if you are disabled in your car. Go with the former and eliminate the duplicate coverage.
2. Eliminate all overlapping insurance.Ex: PIP and uninsured motorist on your auto policy are overlapping insurances IF you already have good, comprehensivelife, medical, and disability insurances.
3. Dont buy extended warranties, warranties for anything you purchase that doesnt come free with the item. Get real, you'll never use them. You'd have a fortune if you just self-insure yourself for what you buy. Also, its easier to break a steel ball, than it is to get someone to do warranty work you already paid them for in the past. Money is an excellent motivator, but you eliminate that motivation if you paid them first!
4. On life, if it isnt term, its a ripoff. Mixing investments with life insurance is a bad idea (ie: whole life, variable life).
5. If you're young and healthy, get the cheaper health policy at your work. If you're sickly, for god's sake start to eat right and exercise. Its so much cheaper, and you feel better to boot.
6. Set deductibles on just about every kind of insurance you have high (1K), and insure yourself with respect to the deductible. Remember, actually using your insurance is a self-defeating process anyway since it will almost always raise your premium. Thus, only use insurnace for major life disruptions (loss of thousands of dollars), not for petty, a few hundred dollar claims.
7. Try to eliminate insurances you dont need. Did you know I found out my homeowners insurance actually covers me if someone identify thefts me via my credit cards? WTF? I found out they tacked on so much add-on junk, my homeowners was bloated with all kinds of coverage i really dont need.
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