3 Ways Insurance Can Save Money

Insurance companies often take some hard knocks for being greedy or overpricing their products. And I’m not disputing that this might be the case in some situations. But there is something to be said for having insurance. It’s one of those budget items you may hate paying for until you need it; but when you need it, you’re extremely happy you have it.

Having a wife who is a type I diabetic, I know just how important good insurance can be when it comes to health coverage. However, insurance has helped us save money in other instances as well�tens of thousands of dollars in fact.

A vehicle accident

About eight years ago, we were involved in a vehicle accident. It did extensive damage to our vehicle, but not enough to have it considered “totaled” by the insurance company. Therefore, we took it in to be repaired.

Thankfully, we were paying for comprehensive and collision coverage on the vehicle, so everything was covered after the deductible. With the repairs coming in at over $5,000, after the $500 deductible, our insurance saved us about $4,500.

Vandalism

About four years later, our poor vehicle took another hit in the form of vandalism. A neighborhood kid apparently thought it would be fun to do a little target practice with his pellet gun. One of the cargo-area windows of our SUV was shot out by this little gunslinger along with several area home windows. The bill to replace the window was $800. However, after the $500 deductible, our insurance saved us $300, and since the police caught the perpetrator, we recouped our deductible as well.

The birth of a child

I’ve written previously about the costs for the births of our children. The doctor and hospital bills for our second child came to about $3,000, but that was just a fraction of the more than $50,000 that was initially billed to the insurance company, a huge savings to say the least. However, there was more to the birthing of this second child than just health insurance savings to consider.

Before the birth of our second child, my wife started a new job. At this new position, she signed up for short-term disability insurance. The cost was minimal, less than $50, but it provided 60 percent of my wife’s paycheck during the majority of time she was off for the pregnancy; so it added up to thousands of dollars in savings.

So while insurance can seem like a waste of money when you’re not using it, when you need it, it sure can come in handy.

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Disclaimer:

The author is not a licensed financial or insurance professional. The information provided in this article is for informational purposes only and does not constitute advice of any kind. Any action taken by the reader due to the information provided in this article is solely at the reader’s discretion.

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