When I first purchased my residence I took out a home appliance insurance policy for around $500 a year. I had the policy for two years. When my furnace failed I called and they sent out a tech right away and the furnace was fixed. Turned out the flame sensor was dirty. The tech replaced the flame sensor, took about 15 minutes from start to finish. Turns out, a flame sensor costs less than $10 and that can be cleaned and doesn't need to be replaced. The repairman did solve the problem, but I was also charged $50 deductable for the repair.
I thought about it, $500 for two years, about $1,000. You know what????? If I'd have just saved that money, instead of buying insurance, I could have bought a new fridge, washer, or dryer. So, I cancelled my home appliance insurance.
Better off just saving your money than using it for home appliance insurance.
I've had the same outcome with dental insurance. I pay $50 a month and the dental insurance covers normal dental work like cleaning or xrays for the year. However, whenever there is major work like fillings or crowns, the dental insurance only covers 80% of the work and only up to a max of $1,000 anually. To this date, the insurance has always cost me more anually than my dental bills. They've always made a profit off me.. No one to blame but myself.
I do have auto insurance, it's required by law. I currently pay about $1,200 anually, with a $500 deductible. I've been driving for 55 years and have never made a claim, never had an accident. Think about how much I could have made if I'd been allowed to save and invest that money, at 5% return, over the last 55 years? WOW!!!!!!!!!!
I suspect that most people buy insurance because they are afraid something may happen and they want a sense of security.
Again, when you look at the large profits that the insurance companies make, the high salaries for their workers/execs, and their large building complexes, ask yourself, "Who is paying the bill for all that?" Why that would be the people who buy insurance.
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