Purchase insurance is always a good idea, and in many cases, it is a necessity. Having a nice insurance portfolio can be a one-stop affair that can meet an expectation if they meet an unfortunate emergency. But there is not enough insurance due to the inability to buy what we need to reduce our costs. There is a way if you can buy more insurance, buy more policies or reduce your current insurance cost.
Auto insurance is a way to reduce your insurance cost. An adequate insurance reserve fund allows you to gain some of your own risks by maintaining a personal reserve fund. When you take some of your risky risks, you can reduce your current insurance costs immediately, keep your premium rates low, and leave extra funds to buy additional insurance that you may need.
An auto insurance fund is basically a stacked set of cash aside for use for your insurance requirements. You need to determine how many insurance reserves you will need for your particular insurance requirement.
The way you can use your self-insurance reserve fund
1. Take away your need for some types of insurance policies that you can assume yourself at risk. For example, you can use your self-insurance fund to pay for the replacement costs of these items, to be able to purchase an entire warranty of automobile insurance, a home warranty for a car in valuable items and jewelry yourself.
2. Broaden your automatic and home deductibles. By increasing your auto and home insurance deductibles, you will be able to reduce your premium payments immediately, which will be insuring yourself (through your self-insurance) for the amount up to deductible.)
3. Increase your disability time.
Everyone needs disability insurance and if you can afford it you can use your non-insurance fund so that you will have to wait before your disagreement starts. As a result you will be able to reduce premiums.
4. Turn on emergency medical health insurance. By changing a health insurance policy that only kicks after a large deductible, which is sometimes called emergency health insurance, you can save a significant amount of your health insurance premium.
Using this type of policy, you will use your self-insurance to pay for your doctor’s inspection and minor treatment procedures, and your emergency health insurance will be there as a safe net if an important medical emergency occurs.
If you choose auto insurance yourself, then your money will be useful to you when it is waiting to be used. The best way to invest your self-insurance economy is to invest it. Your investments should be in short-term investments, which can become quick-usable cash without a great loss of value. Such investments include money market and / or mutual funds. Avoid long-term investments such as stocks and bonds because they are not eligible for a short-term emergency fund such as self-insurance funds.
If you want, you can also select a savings account. Your return will be lower on a savings account, but at the same time it will quickly and easily access your money when earning a small return at the same time