Have you ever bought something and never used it? Maybe you purchased a coat or a piece of furniture at a yard sale and you never used it. Maybe you bought a dress for a party you never attended. Later, you experienced buyer’s remorse when you realized that your cash was wasted and that coat, furniture, or dress mockingly laughed at you from your closet. It’s a bad feeling.
But there are some other things you’ve hopefully purchased that you sincerely hope you never use. The irony is, if you DO use them, you’re very thankful you made that purchase. When they’re needed, they can really keep you from bursting your budget!
I’ve never personally had a car insurance claim, but I’m always glad that I have it. With the current trend of lapsing auto policies, it make good sense to keep my policy in force … in addition to being required by law! Also, by checking with Netquote.com, I can always “insure” that I have the best price on my current policy.
Though I’ve never had a auto claim, I’ve had more than my fair share of health insurance claims. For the past three years, even with a very good health policy, I’ve had over $10,000 each year in personal medical expenditures. Without my very good health insurance, my expenses would have probably thrown me into bankruptcy.
A disability is the main risk I have as a middle age male and I always maintain the maximum amount of disability insurance I possibly can. I consider my stream of income from work to be one of my greatest assets. Insuring it is just plain common sense.
Good dental health is related to good health overall and without dental insurance, many people shun the dentist. That’s a shame because very good dental insurance is available at minimal cost. I use my dental policy for regular cleanings and checkups to make certain my teeth are in good shape. This past year, I had seven fillings replaced and a crown. Dental insurance saved my skin!
Life insurance is unique in that there is only one claim. That’s one reason so many companies push it! Whether someone depends on your income or not, you need life insurance. That is where I depart from a lot of people in the personal finance blogosphere. A well thought out financial plan will always include life insurance because it will pay off any remaining bills you leave behind as well as cover your funeral costs. Many life underwriters have reworked their term policy costs and term life insurance rates have dropped over the past few years. If you don’t have it, look into it.
Homeowner’s Insurance and Renter’s Insurance
I did have an opportunity to use my homeowners insurance this past winter when we went through a huge ice storm and were without power for nine straight days, but in the end, I decided it was more worthwhile to have a “no claims” profile with my issuing company. Besides, I did most of the work myself in fixing my roof and the reimbursement would have been minimal in comparison.
If you’re a renter, probably no type of insurance is overlooked more than renters insurance but regardless of reason, this is one policy that all renter’s need to have in force. Apartments and rental homes are burglarized just like single family homes and having the proper policy to cover fire and theft will minimize your personal risk of loss.
Hard Drive Insurance
With most hard drives predicted to last only 5 years or so, I’ve taken steps to backup my valuable files by using Mozy. With their online backup you can back up your irreplaceable files automatically and securely. Mozy backs up your files in the background and if you’ve ever lost valuable information to a hard drive crash, especially if it wasn’t backed up, you know how valuable an automatic, online backup system could be. At less than a few bucks per month, it’s a no-brainer.
Who knew buying things you hope you never use could be such a wise decision!