More Ways To Save Money

Insurance

Don't buy insurance you don't need. Most people can save several hundred dollars a month by canceling or reducing insurance policies. For example:

If you really need life insurance ( children under 18 ), buy term life. It is a much better value. You can't collect on any type of life insurance unless you die. You won't notice whether your heirs pay $5,000 to bury you or $25,000.

Don't buy auto insurance you don't need. You are legally required to buy Liability but the rest are optional. Let's say you have a 2nd car that is worth $1,000, you have damage insurance on it and pay $50 a month for that, but your deductible is $500. If you total it, you get a check for $500 from the insurance company ( value - deductible ). But you have paid $600 a year for that policy for 5 years. You have lost $3,000 by buying that insurance. If you really think you are going to total a car more than once every 5 years, you need to take a driving safety class.

If you have health insurance from your job you are lucky even if you pay extra for it. Keep deductibles high and put the extra into a health savings account. If your employer offers such a health savings plan, take advantage of it.

If you have Homeowner's Insurance or Renter's Insurance ( Renter's insurance is rarely worth it ), document your possessions. If you have expensive possessions, the insurance company is not going to properly reimburse you unless you can prove what they were worth.

Don't file un-necessary claims. If you have a $500 loss but by filing a claim your insurance premiums are going to go up $600 you lose $100 by filing the claim rather than just paying for it yourself.

Think about modifying your lifestyle rather than buying insurance. If you drive recklessly, stop it. It's going to really hurt when you have an "accident" and no amount of money is going to be worth that. Plus you could hurt someone else. Your insurance isn't going to compensate you for the sleepless nights if your reckless driving hurts someone and you can't forget their screams. If those sleepless nights lead to depression and you lose your job, your insurance isn't going to compensate you for that either.