Don’t skip insurance coverage to save money
April 9, 2009
When times get tough financially, it’s time to cut back on your expenses.
There are plenty of things we can live without, but there are also some things we shouldn’t try to live without.
Insurance, in my opinion, is not something that should be cut from the budget.
A story on MSNBC said according to the insurance industry, 1 in 6 drivers likely won’t be insured by the end of the year.
That is a scary figure.
Experts are warning that there may eventually be record numbers of uninsured drivers on our roadways.
Again, that’s scary.
First of all, almost every single state, including
Furthermore, if you are in an accident, how will you pay for the repairs? What if you or another party involved in the accident is injured? You could open yourself up to a lawsuit that could cost you far more in the long run than the money you’ll save by skipping the insurance.
If you think your insurance payments are too high, sit down and review your policy. Years ago I thought my premiums seemed high. I was right. After I review of my policy I found out I was over insured. Make sure you have an appropriate level of coverage.
Auto insurance isn’t the only insurance you should have. If you are a renter, you should carry renter’s insurance. If you don’t, you need to realize that in the event of a disaster, you could lose everything you have.
Most property owners have insurance on their building, but they do not cover the personal belongings of the renter. When I was a newspaper reporter, I covered many fires where renters lost all of their possessions and didn’t have renter’s insurance to make them whole again.
Imagine the cost of replacing everything you own out of pocket.
Likewise, homeowner’s insurance not only covers the contents of your home, it can also protect you from liability should someone get injured on your property.
I know insurance seems like a needless expense. And people who pay into insurance for years and never have to use it probably feel like they’ve thrown all of their money out the window. But it’s still better to be prepared.
Several times my cars have been damaged in accidents that were no fault of my own. In one situation I was responsible for an accident. If I, and/or the party that caused the damage, had not been insured, the out-of-pocket expenses for repairs would have been astronomical. In those cases insurance is a relief and an expense that is well worth it.
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