I sometimes feel that I am the poster child for insurance coverage. Insurance is the kind of bill that you pay every month (or annually to get that discount!) and hope to never use. If my Amazon or Netflix subscription wasn’t getting used, you know I would cancel them! But insurance bills? I am happy (mostly!) to pay them because they protect my family. That being said, make sure you are shopping around for the best deals for all of your insurance needs. Bundling services and adjusting deductibles can save you money and updating policies based on life or market changes is important!
Last year I shopped rates after our property value had increased. I was able to almost double my coverage and even saved a few dollars! If I hadn’t raised the coverage, my policy would have run far short of what it would have cost to rebuild! Sadly, a neighbor up the street lost their house to a fire this year, which really drove home the importance of this coverage.
As my second child moved into her own apartment this year, we updated the car insurance to remove her (a big savings!). What I hadn’t expected was that our umbrella policy premium (which kicks in after your home or auto coverage in a worse case scenario) ALSO went down due to the change in members of the household.
Every situation is different, but here are the basic types of insurance to consider (and hope to never have to use!):
- Health insurance (medical debt is one of the top causes of bankruptcy in the US)*
- Disability insurance (benefits generally not taxable if premiums are paid with after-tax dollars)
- Renters’ insurance
- Life insurance (10-12X your salary)
- Identity theft protection
- Car insurance
- Home Owners’ insurance
- Umbrella insurance
- Long term care insurance (best at age 60 if not self-insured)
- Flood insurance where applicable