Shopping for Insurance

As promised last week, here is some insurance advice from All Your Worth: The Ultimate Lifetime Money Plan. (This does not apply to medical insurance.):

1. You haven't shopped for insurance in the past 2 years.

2. You didn't get at least 5 quotes before buying insurance.

3. You use several different insurance companies instead of getting all your insurance through one company.

4. You have a low deductible.

For the kids or young adults out there, until now, you have probably heard "premium" and thought, "sounds good" like "premium ice cream" or "premium coffee". When it comes to insurance, "premium" is not so special. It's the bill you pay monthly for your insurance. You always pay it whether you have to use the insurance or not.

If something happens and you need to use your insurance, the deductible is the amount of money you have to pay for the repairs before the insurance company pays for anything.

A low deductible means higher premiums. Your deductible should not be too much for you to pay, but it should sting a bit.

5. You signed up for the little extras like "free" rental cars.

Those nice little extras are never free. Insurance is for big things like a large portion of your house burns down, or your car resembles an accordion. Using it for smaller repairs means paying more than you should every month.

6. You have insurance you don't need. For example, babies don't need life insurance.

There is no one relying on kids to bring home the bacon, hopefully. If you want to give Junior an investment, open an investment account or college fund.

Confession time! I have had insurance shopping on my to-do list for over 2 years, and it is still there, waiting to be checked off. Why?

We all know why: It is confusing, stressful, and boring.

The thought of insurance shopping makes getting my tax documents in order look attractive. But, shopping for insurance can save you big-time every month.

Ever wished there was a holiday devoted to getting things for yourself? Guilt-free gifts for you, from you? It's not selfish; it's the purpose of the holiday! Prepare yourself to spend that stack of money you save on insurance. That's right, you are wishing you a...

Happy Insurance Day!

The day that will keep giving all year round.

Last Note: If you would like a step-by-step how-to for insurance, that's brief and has pics, DM me on twitter.

Sources

Want the details on insurance you don't need? Check out Warren and Warren Tyagi's book, pages 77-80. Those 3 pages could save you thousands of dollars!

What are insurance danger zones that many people fall into? See pages 188-196 of Jill Schlesinger's book.