Why couldn’t somebody just put money in a savings account monthly instead of paying insurance monthly?
In: Economics
For home and car insurance, you technically can, but let’s just say that sometimes you are legally required to be insured. If you finance your home with a mortgage, the bank will want it to be insured.
Another thing is that you need the money to actually replace those assets.
If you can afford to rebuild your home or buy a new car outright, I mean, go nuts as long as the law doesn’t require insurance.
In a nutshell, it will work, but only if you’re very wealthy.
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