Insurance in a Frugal Lifestyle
Frugal living is all about making the most out of your money. Some people like to confuse it for being cheap, but anyone that practices frugal living knows that it’s far from the case. It’s not uncommon to see someone frugal buying a more expensive vehicle, appliances or even food because they understand it offers more than something cheap. However, when it comes to insurance, being frugal can often be difficult.
To put it simply, being frugal inherently means getting the most value out of something. For example, why purchase a fancy water bottle when you can reuse plastic bottles? All it takes is a little wash before you refill it again, and it’s a lot cheaper especially if you already get the bottle from purchasing spring water. In a sense, this means that being frugal with insurance means simply treating your items properly and getting the most out of them so they can’t fail.
Let’s use your computer as an example. If you want to be frugal and skip insurance costs, then you need to take better care of your computer. You need to understand how to clean out a dusty computer, how to install good software and avoid viruses, and also how to claim warranty on individual parts. However, when it comes to car insurance, there are certain situations that can’t be avoided no matter how hard you try unless you don’t drive at all.
Let’s face it: insurance is all about preventing unavoidable or sudden accidents. Even if you have excellent defensive driving skills and a lot of experience, nothing prevents some random person from driving over the speed limit and slamming into your vehicle. The frugal approach would be to get a car accident lawyer free consultation to at least examine the damage and get a quote on how much it would cost to claim compensation. However, in many places around the world, insurance is mandatory for your vehicle so you don’t have much choice.
Another place where insurance is needed is your home. If you live in a part of the world that frequently suffers from natural disasters, then you have an extremely high chance of being on the receiving end and losing something from your home. Unless you’re willing to pay for the damages and take that risk, it’s always best to get the most value out of a home insurance plan instead.
Worth it or not?
In short, it’s difficult to decide whether or not insurance is worth the added cost. However, there are some places, such as your vehicle, your life and your house, that absolutely should have cover. Without cover on these, you run the risk of losing them permanently and without compensation to cover it. Unfortunately, this means that you’ll have to fork out the cash and accept insurance as a necessary expense much like your rent and utility bills. It’s not as bad as it sounds, but if you’re on the extreme end of frugality, then you may find it hard to swallow.