Personal Finance and Money Stack Exchange
Personal Finance and Money Stack Exchange

Questions tagged [insurance]

The promise that something will be paid in case of loss. Used to cover important items and reduce personal risk. This tag covers how to get it, how to keep it, what kind, and why you should have it.

Insurance policies can be written for property, casualty or life. Insurance coverage can also be for specific events such as travel insurance or flood insurance.

496 questions
108
votes
13 answers

Does it make sense to insure something when you could financially bear its loss?

I'm wondering whether it makes sense to insure something if its loss would not be life-changing. I want to buy a boat to live on while I attend university. It would cost about 10,000 dollars and my financial situation is good enough so that I would…
Pertinax
  • 1,530
  • 2
  • 9
  • 12
79
votes
15 answers

Are small insurances worth it?

Small insurances like phone insurance, tire insurance, etc. Are these worth it? In general I always have a bad gut feeling about any insurance. I just don't like the idea of paying for stuff I never really use (especially medical insurance) But…
Paul Kruger
  • 901
  • 1
  • 6
  • 6
55
votes
12 answers

Is insurance worth it if you can afford to replace the item? If not, when is it?

I am talking here exclusively about insurance for items (not for health or other type of insurance where lives and liability are at risk). Let's say I have a 1-year old Macbook (costs $2000+tax new) and the warranty is about to expire. Apple gives…
Daniel Benedykt
  • 681
  • 1
  • 5
  • 6
36
votes
11 answers

Why do people buy insurance even if they have the means to overcome the loss?

Insurance companies are businesses and their goal is to make money. It follows that if you are neither lucky nor unlucky, you will end up in the long run losing money by stipulating an insurance. I think this is a very simple concept that cannot be…
Andreas Bonini
  • 507
  • 5
  • 5
23
votes
11 answers

Is it rational to buy insurance if I have the same sum in a savings account?

I considered to buy a house-contents insurance. The total value of the contents is quite small, say X. Meanwhile, I have X in a savings account, that I can withdraw at any time. I am not sure whether it is rational to buy such insurance at all. My…
Erel Segal-Halevi
  • 744
  • 5
  • 13
19
votes
9 answers

If you have insurance of some kind, and you are in an accident, does that mean that they increase your monthly fee?

I've always been confused by things like this: Joe has his car stolen or drives it into a wall by accident, or some other kind of accident happens which "goes on the insurance". Joe gets money from his insurance company. Joe says: "Nah! No big…
B. Corpening
  • 199
  • 1
  • 3
13
votes
4 answers

At what age should I consider buying long term care insurance?

An oft overlooked, but important insurance product that has the ability to protect us from a reasonably likely and fiscally devastating event, Long Term Care insurance seems like something I am out to be seriously considering at some point, but…
JohnFx
  • 52,979
  • 12
  • 134
  • 245
11
votes
2 answers

When is an event worth insuring against?

Inspired by another question, what factors should generally be considered when deciding whether or not to insure yourself against events with a financial impact? The linked answer makes mention of any cost that would bankrupt me, while a comment…
Lilienthal
  • 689
  • 7
  • 17
7
votes
3 answers

At what point does it become worth it to file an insurance claim?

Let's say that a person has a $500 deductible on a home. Let's say that there would be a claim at x dollars. I think it's clear that if the claim was $501, that it wouldn't be worth it, due to higher rates, etc, but if it was $10K, it would be worth…
PearsonArtPhoto
  • 1,245
  • 8
  • 18
6
votes
4 answers

What should I invest in to hedge against a serious crash or calamity?

There are a number of risks to the world and its economy out there over the next several decades, e.g. Peak oil Global warming Instability (e.g. a major war or uptick in terrorism) An "unknown unknown" From the point of view of my investments,…
GS - Apologise to Monica
  • 29,974
  • 8
  • 93
  • 119
5
votes
3 answers

Claim Money to upgrade

I received money to replace my gutter but not my downspouts, I received money for painting so my downspouts and gutters match. Can I use that money to put towards downspouts instead and just pay the difference?
Cathy S
  • 59
  • 2
5
votes
1 answer

Why do people divide their liability coverage into primary and excess?

I sometimes hear that someone has "$300,000 of primary coverage and $1,000,000 of excess coverage." Why do they not just purchase $1,000,000 of primary coverage? What is being gained by splitting the coverage into primary and excess? I am in…
Owen
  • 241
  • 2
  • 7
5
votes
1 answer

Where to get liability insurance for car rentals, as an add-on to Visa Collision Damage Waiver?

For car rentals paid for entirely by Visa credit cards, Visa usually provides a benefit called the Collision Damage Waiver, which in my experience is pretty good. It does not however cover personal liability. Are there any insurance companies which…
user14258
4
votes
4 answers

How does on-demand insurance company Trov prevent insurance fraud or high prices?

There is an insurance/tech start-up called Trov. Their mobile platform allows you to add your possessions to your inventory. (For example, by importing billing info directly from your e-mail) Then, you can turn on and off insurance coverage on…
user3254054
  • 143
  • 3
4
votes
2 answers

How do insurers decide "their" proportion of a claim when dual-insured?

Most (UK) insurance policies have a "dual insurance" clause along the following lines: If any injury, loss, damage or liability is covered by any other insurance then we will not pay more than our proportion. I understand why (to guard against…
hamish
  • 141
  • 1
  • 2
1
2 3 4