June Money Tip

If you're like most people, you are overpaying for insurance (and it isn’t because you chose cavemen or geckos). What's even worse is that in spite of paying too much, you may not even be properly covered if something major were to happen.

How would you like to pay less money for more insurance coverage?

The purpose of insurance is to cover the 'big stuff' that would be catastrophic or that you don't want to dip into your assets or income for when it happens.

You can likely cover the small claims, fender benders, petty theft, and wind damage to the house, etc. out of your own pocket—especially if it saved you money each month on your premiums, right? However, could you cover a $500,000 claim? Most people can’t.

So it makes sense to consider raising your deductibles to save money, and then using those saved dollars to get the highest limits possible on your coverage. This way you’ll have coverage where you need it (the big claims) without the extra expense of a low deductible taking your money every month.

Let me explain more…

Small 'fender bender' type of things happen the most often, so a low deductible costs a lot. However, the six-figure claims are more rare, so higher limits are quite affordable. Oftentimes, raising your deductible a few hundred dollars offsets the cost of getting hundreds of thousands of dollars in additional coverage.

So consider raising your deductibles to match your comfort levels to save money. Next, increase your limits so they will protect you from the claims that could take everything you’ve worked so hard to save. With a little luck, it’s likely that you can be paying less for a LOT more coverage.

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