What Does It Mean To Self-Insure And Can It Save Me Money?

When you’re working on getting your financial house in order, it can be overwhelming to consider all the different insurance products you can (and sometimes are required to) purchase.

There’s insurance for your vehicle, your home, your cell phone, and your pet. Health, life, disability, and long-term care insurance are also important products to protect one’s financial future.

You can also buy flood insurance, extra liability insurance, and travel insurance. If you have a business, you probably want to insure it too.

When you purchase appliances, electronics, or a new car — you can be sure you’ll be pitched extended warranties similar to insurance.

But each type of insurance product comes with a price tag.

While there’s some peace of mind provided with being insured, you’ll probably have to make decisions about which insurance products you can afford. When you don’t buy insurance, you’re either self-insuring or going uninsured.

Let’s take a more in-depth look at self-insuring. You should understand the pros and cons of not purchasing (or limiting) the types of insurance you have. While saving on insurance can be a smart way to save money, it’s essential to understand the risks involved too.