Money Sense

 

When buying insurance there are many things to consider. Of course, cost is a major consideration however it should never become more important than the protection that you are buying.

 

Insurance is simply the transfer of risk. For example; you own a $250,000 home. If it were to be destroyed in a fire you would need to replace it. But most people don’t have the money lying around to use to replace their house. So, you pay a NC insurance company several hundred dollars a year to take the risk of having to pay the $250,000. It is the same with every kind of insurance you buy. All you are doing is paying someone else to take a risk that you cannot afford to take.

 

At Penny Insurance Agency in Hendersonville, NC our rule of thumb has always been that you insure what you cannot afford to replace. If you can afford to replace or repair something, then why waste the money on insurance?

 

A simple way to save money on your insurance premiums is through the deductible you choose. The higher the deductible the lower the premium. If you can afford to pay $1,000 to repair your roof, why would you have a $250 deductible on your homeowners insurance? Choosing a higher deductible lowers your premium. That is true whether it’s Asheville auto insurance, Hendersonville home insurance, Charlotte business insurance or Brevard health insurance!

 

Back to the $250,000 house. Do you really need to insure 100% of the house or would it make sense to self insure 1% by taking a $2,500 deductible and insuring the other 99% through an insurance company? Doing so could save you a lot of money. blog comments powered by Disqus