Can insurance really save you money? Yes. Let’s be real. Insurance feels like a waste of money – until you need it. And yes, there are some useless insurance policies out there (like alien abduction insurance for those times when Scotty really does beam you up). But the right insurance policies can save you money in the long run by reducing or eliminating your out-of-pocket costs.
In the U.S., a trip to the hospital can leave you bankrupt – literally. In fact, medical bills are the leading cause of bankruptcies in the U.S.
Without health insurance, you’ll have to pay for every doctor and hospital visit out of your own pocket.
Yes, health insurance is expensive, but unless you have an extra $10K laying around (the average cost of a hospital visit), it’s a lot cheaper to pay for a medical insurance policy. Even if you’re a young and healthy adult, you never know what tomorrow holds. If a freak accident left you in the hospital for a month, you’d be bankrupt without insurance.
Car insurance and saving money aren’t usually used in the same sentence, but your policy will save you money if you’re ever in an accident. And you can’t legally drive a car without insurance, so unless you plan on taking the bus everywhere, this is one type of insurance you need.
The sad reality is that most drivers will get into at least one accident. The average collision claim costs $3,434, according to the Insurance Information Institute. Imagine having to pay that kind of money out of your own pocket if you’re in an accident.
If you really want to cover all your bases, get a policy with more than just the minimum coverage. This way, if you do get into an accident, you can be confident insurance will cover all of the costs.
Whether you own or rent your home, it pays to have insurance. If you have a mortgage, your lender probably requires homeowner’s insurance. Even if your landlord doesn’t require it, you should probably get renter’s insurance.
- If someone breaks into your apartment, do you have the money to replace your jewelry, TV or other high-value items?
- If a fire burns down your house, do you have the money to rebuild it?
Without insurance, you’re out of luck.
Most homeowner’s insurance policies cover:
- Liability (if someone gets injured at your house)
- Wind, lightning and hail damage
- Other structures on your property (like a shed)
- Your belongings
Renter’s insurance offers similar coverage.
Wind and hail are the most common types of homeowner’s insurance claims, and the average damage cost is $10,182. Theft is the top renter’s insurance claim.
The bottom line? Get homeowner’s or renter’s insurance. It’s a small price to pay for protecting your home and belongings.
Identity Theft Insurance
In 2017, 15.4 million Americans were the victims of identity theft – and it cost them $16 billion. We all know the rules about keeping our personal information private, but even if you’re paranoid-level protective of your information, hackers can still get your details.
Hackers recently forced their way into Macy’s Checkout and My Wallet pages and stole data from thousands of customers.
Data breaches happen all the time, and the public doesn’t even find out about it until the damage is already done. Identity theft can cost thousands of dollars to fix. Insurance can help lower the cost and get the situation resolved more quickly.
Insurance can save you money over the long term, but you need the right policies and coverage. Make sure that you understand what your policy covers, what it doesn’t cover and your coverage limits to make sure it meets your needs.