Most of us don't think twice about paying for health, home or life insurance - and that's a good thing. The problem is when we don't think twice about paying for collision, identity theft, or cell phone insurance.
There are financial products that are worth the risk, and those that aren't, according to a new list by Consumer Reports. And if we take the time to weigh the pros and cons - instead of blindly buying what companies tell us to - our savings might well exceed the extra gamble, say Atlanta bankruptcy attorneys.
Take collision insurance. Most car owners pay several hundred dollars a year for it. That makes sense if you're driving a new car. But if - like many Americans - you're driving a used, somewhat beat up vehicle to save money, you might be better off forgoing that particular policy. See, collision insurance typically covers no more than the value of your car, minus a deductible. So if your insurance company values your beater car at $800 and your deductible is $500, the maximum you could get for repairs is $300. If you're paying over $300 a year for collision coverage, you're losing money.
How about protection against identity theft? That's got to be a good thing, right? In theory, yes - but as it turns out, paying $200 a year for identity theft insurance might not protect you any more than you could protect yourself by simply being cautious about where you use your credit and debit cards and keeping an eye on your statements to catch suspicious behavior before it spirals out of control.
With so many folks depending on pricey cell phones like iPhones and Blackberries, it's no wonder that we're willing to shell out $100 or more to insure our electronics. But when you factor in deductibles and the fine print - for instance, did you know that just because a company promises to replace your phone doesn't mean they'll replace it with the same model? - you might be better off just sucking it up and buying a new phone if something happens.
In the end, only you can decide what risks are worth the cost. Of course, if you can't afford the most basic insurance needs - like health insurance to protect the well-being of your family - then it's time to get financial help. If you're struggling with debt, bankruptcy can be the fastest way to a fresh start. Learn more today when you sign up for a free, no-obligation one-on-one debt analysis with an Atlanta bankruptcy attorney.
