An extended warranty just prolongs that original period-but at a price. Meaning if your smartphone goes dumb within the first few months (or even the first year or more), the manufacturer will fix it for free.
The salesperson always makes them seem like such a good idea. Extended warranties are basically extra insurance for your stuff-like your TV, couch, smartphone, etc. If you carry 10–12 times your annual salary in term life coverage, you’re fine.ĭon’t do it, people. If you died in a car accident, your beneficiaries would get the extra $500,000-for a total payout of $1 million.īut your family doesn’t need twice as much just because you died in an accident. For example, let’s say you take out a $500,000 life insurance policy with an extra $500,000 accidental death rider. It’s additional coverage that’s sold with life insurance policies-and it’s something you should avoid.Īccidental death riders give you extra coverage if your cause of death is an accident. Nope, this isn’t the name of your favorite metal band. Sounds good, right? But a return of premium rider could add hundreds of dollars to a life insurance bill each year-and that’s money you could use to pay off debt, build your emergency fund, or invest for retirement. You’ll often see riders attached to life insurance policies, but you might see some riders available with homeowners or auto insurance policies too.Ī return of premium rider says you can get your premiums back if you never use the policy. We know what you’re thinking: What in the world is a rider? It’s an additional coverage that’s added to a policy for an extra charge. Not sure? Talk to an independent insurance agent to check which coverages you need and which ones you can skip.
HIDDEN BUSINESS EXPENSES FULL
When it comes to car insurance, you need full coverage, which is made up of three types of coveragesīut beyond that, with a fully funded emergency fund in place, you can drop these add-ons and save some money. But if you already have roadside assistance through an organization like AAA (American Automobile Association), then you’re paying for the same thing twice-and who wants to do that? Depending on the policy, your insurance company could reimburse you for the costs of roadside service or they’ll send help directly to you at no charge. This is another optional coverage that helps with roadside troubles like towing or fixing a flat. You might be able to save a couple bucks by dropping emergency roadside service too. The truth is, you probably don’t need this coverage-especially if you have a fully funded emergency fund in place, access to a second vehicle, or nice friends who can shuttle you around for a few days. Sometimes it adds as little as $2 each month to your premiums-but it can also be more than $175 every year! Rental car reimbursement will pay for a rental car you can drive while you’re waiting on repairs.
HIDDEN BUSINESS EXPENSES PRO
So how do you get around while your mechanic fixes Old Betsy?ĭo you have the right insurance coverage? You could be saving hundreds! Connect with an insurance pro today! Win-win!Ī nasty wreck could leave your car stranded in the shop for a couple weeks.
Plus, you’ll save a few trees and avoid late payments in the process. If you go paperless, they can’t pass those expenses on to you. Again-it’s all about saving on the administrative costs for the company. For the biggest savings? Pay the whole year up front.Ī lot of insurance companies will give you a break if you switch from paper statements to email statements and set up automatic payments instead of paying with a check in the mail. You can usually score a discount by paying quarterly (four times a year) or semiannually (twice a year). So they charge you an “installment fee.” No thank you. Here’s why: More payments mean more administrative costs for the insurance company. If you pay your insurance premiums monthly, you’re actually choosing the most expensive way to pay. When it comes to insurance, how you pay can be just as important as what you’re paying for. Start saving money by watching out for these bogus insurance fees: Sadly, that’s just what many insurance companies do! So you have to be on the lookout for the sneaky expenses they slide into their packages that drive up your insurance bill.īy making a few tweaks to your insurance policies, you can stop all that nickel-and-diming-and keep more money in your pocket! Hey, every little bit helps, right? Everyone needs insurance, right? And nobody should exploit that need to line their own pockets.
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