Only use your insurance policies for catastrophic events.
You have a “permanent record” that insurance companies will look up before they write your policy.
If you have a lot of claims – especially smaller ones – they’ll either deny you coverage or make it prohibitively expensive.
You’ve probably read (or unfortunately experienced) how difficult it is to get insurance these days.
Don’t shoot yourself in the foot with frivolous insurance claims.
BeeTeeDubs – This is very much in keeping with the Financial Zen philosophy on insurance:
INSURANCE ONLY EXISTS TO PREVENT FINANCIAL CATASTROPHY.
If something happens that won’t irreversibly set you back, then you don’t need to insure against it.
EXTRA CREDIT: Increasing your deductibles to a large amount (like $5,000+) will add enough self-imposed friction to keep you from submitting a claim for something that should really be paid for from your Emergency Fund.
(PLUS you’ll save a few bucks on your premium.)
