Self-insurance

Instead of taking out insurance, you could decide to self-insure by taking the ‘no cover route'. Instead of paying for a policy each month, put the same amount into a top savings account to build up your own emergency fund. Then if you do have a problem the cash is there to pay for it - if you don't then the cash is yours.

Top tips

  • Try to weigh up the pros and cons of self-insuring, you might be paying over the odds for cover you don't need. But then it all depends on your frame of mind - are you happy crossing your fingers and hoping for the best?!

 

 

 

  • Ask yourself not only if you can afford to insure, but if you can afford not to insure. Some risks are just too great and may cause financial hardship if you don't insure them.

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