By following the eight rules explained here you can save money and just as importantly you can avoid making serious mistakes when buying and purchasing an insurance policy.
Rule 1: Buy insurance only for financial risks you cannot bear on your own
The purpose of insurance is to cover catastrophes that could leave you or your family devastated. Don’t see insurance as an opportunity to cover all losses no matter how small or insignificant because if you do you’ll be wasting money on insurance that you don’t really need. For example if Your house is on fire and you’ll be glad you have homeowners insurance. Homeowners insurance is worth having because you probably won’t be able (and you certainly don’t want to) pay to rebuild your home. On the other hand insuring your old car If the car is only worth $800 it’s a waste of money. If you have to you will lose money for something that will protect you.