Do you have the right insurance or can you save money by switching insurance? Learn what the insurance really is and how to avoid the costly pitfalls. Too many people spend too much money on animals and unnecessary insurance. The insurance industry makes a lot of money from Norwegians’ poor choices.
Insurance is gambling
Learn this very basic principle: Buying an insurance policy is about the same as buying a lottery ticket. If a particular event occurs, you get a sum of money, whether it’s about the chance of your house burning down.
The price of the insurance is like the price of a lot of coupons, calculated on the basis of a certain percentage going to pay premiums, and the rest to themselves. When we understand this, you will also understand that statistically, it is not worthwhile to buy insurance.
When it still has some insurance you should buy is, that you may come across some situations where you are facing a large bill, such as a house burn down or you are at fault for an accident where you have an obligation to provide compensation.
What insurance should we have?
In general, you should buy nothing but an accident and an insurance policy. If you have ownership, you are normally required to have the insured, and if you have a car, you should have a car. That was it!
You can see these things as a lottery game in a negative sense, where people are forced to participate. If the accident happened and we “win” the obligation to pay a million compensation, it could ruin your life if you are not insured. Here are a few hundred dollars a year well spent.
What insurance should you keep away from?
Yes, that’s so broad the rest. Since there are many people who buy unnecessary insurance, I would like to mention some of the typical pitfalls:
Extra insurance. If you buy a new computer, TV, bedding or similar, it is standard for the seller to ask if you want it insured. Be very cash to say no thanks – they can be very aggressive. Such insurance is both unnecessary and is often terribly expensive. We are well covered by insurance and the general consumer rights.
Cancellation insurance when traveling
It is likely that if you have booked a trip and then it will be impossible to get away, but learn to live with risk and save as money. Should you be dissatisfied, you do not suddenly need an extra charge, as you just lost a vacation. Usually, an insurance surplus and there is only one extra holiday expenses that you do not get anything out.
A rule of thumb is that you should not buy insurance if you do not depend on or are forced to replace the product, for example, you do not need to buy a new trip if you cancel or if you can buy a new product without getting into financial trouble , if the digital camera would break, so you just buy a new safe that is both cheaper and better.
Find the cheapest insurance
Many people think they get a discount if they collect their insurance in the same company, but in reality it seems that we are often forced to buy a single animal or unnecessary insurance to get a discount. Investigate why it doesn’t pay to spread across multiple companies.