Act 311

Check your deductibles

I renewed my car insurance today. The agent suggested I drop the deductible from $500 to $300. Because my car is over ten years old, the saving of having a higher deductible is only $20. It would be more if my car were newer. So I’ll pay the extra $20 per year for the lower deductible. It’s a gamble I’ll take.

Same goes for home insurance. They are savings to be had if you up your deductible from $500 to $1,000.

Talk to your broker and explore as many options you can to get the coverage you need at a price you can afford on your assets, not your liabilities. Which means, never ever get credit card or mortgage insurance if you can avoid it. You’re paying to protect your creditors from you. That should be illegal if you ask me.

And while we’re on the topic of insurance, think twice about extended warranty packages. Studies have shown that, statistically speaking, they are not worth the expense. But again, if you’re making a large purchase such as a television, computer or appliance, check the facts, and ask if there’s a limited warranty as part of your purchase decision.

Insurance, in my view, is a necessary evil. It’s a major, and mostly useless expense in our personal budget. So when I do have to deal with it, I insist on good service and ask many questions because I don’t want to get a nasty surprise if I ever do have to make a claim.

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