Can insurance really help you save money? Yes. Let’s be honest. Until you need it, insurance seems like a waste of money. And, yes, there are some insurance policies that are completely useless (like alien abduction insurance for those times when Scotty really does beam you up). However, the correct insurance policies can help you save money in the long term by lowering or eliminating your out-of-pocket expenses.
A trip to the hospital in the United States can actually bankrupt you. Indeed, medical debts are the primary cause of bankruptcy in the United States.
You will have to pay for every doctor’s and hospital visit out of your own cash if you do not have health insurance.
Yes, health insurance is expensive, but unless you have an additional $10,000 lying around (the average cost of a hospital visit), paying for a medical insurance policy is a lot cheaper. You never know what tomorrow brings, even if you’re a young and healthy adult. Without insurance, if a strange accident placed you in the hospital for a month, you’d be bankrupt.
Car insurance and saving money don’t normally go together, but your policy will save you money if you get into an accident. You can’t legally drive a car without insurance, so unless you plan on riding the bus everywhere, you’ll need this form of coverage.
The unfortunate reality is that most drivers will be involved in at least one accident. According to the Insurance Information Institute, the average collision claim costs $3,434. Imagine having to pay that much money out of your own pocket in the event of an accident.
If you truly want to cover all of your bases, purchase a policy that provides more than the bare minimum. This way, if you are in an accident, you can rest assured that your insurance will cover all of the charges.
Insurance is important whether you own or rent your house. If you have a mortgage, your lender will almost certainly require homeowner’s insurance. You should usually purchase renter’s insurance even if your landlord does not demand it.
Do you have enough money to replace your jewellery, TV, or other high-value items if someone breaks into your apartment?
Do you have enough money to repair your house if it is destroyed by fire?
You’re out of luck if you don’t have insurance.
Most homeowner’s insurance policies include coverage for:
- Theft (if someone gets injured at your house)
- Wind, lightning, and hail damage.
- Additional constructions on your property (like a shed)
- Your possessions
- Renter’s insurance provides comparable coverage.
The most prevalent types of homeowner’s insurance claims are wind and hail, with an average damage cost of $10,182. Theft is the most common reason for a renter’s insurance claim.
What’s the bottom line? Purchase either homeowner’s or renter’s insurance. It’s a little fee to pay to keep your home and valuables safe.
Identity Theft Insurance:
Identity theft affected 15.4 million Americans in 2017, costing them $16 billion. We’ve all heard the rules about keeping our personal information private, but even if you’re concerned about it, hackers can still access your information.
Hackers recently gained access to Macy’s Checkout and My Wallet pages, stealing information from thousands of customers.
Data breaches happen all the time, and the public isn’t even aware of them until the damage is done. Identity theft can cost tens of thousands of dollars to repair. Insurance can help to reduce costs and speed up the resolution of a crisis.
Insurance can help you save money in the long run, but you must choose the correct products and coverage. To ensure that your policy suits your needs, make sure you understand what it covers, what it does not cover, and your coverage limits.
You know what else can save you money? Find out how loans can help you save some money.