Does buying insurance makes sense for someone with very frugal money habits? I always feel like I’m losing out by buying car insurance. I am extremely frugal, only spend about 25% of my after-tax income, and rest are invested in low-risk bonds and index funds. I also maintain 2 years worth of living expenses in a savings account.
So my question is, what does an insurance buy me? I can afford to pay off in cash if something bad happens. Isn’t it a waste to pay insurance premiums?
In: Economics
Many states have an insurance waiver program if you can prove that you have a minimum level of liquid assets. Check with you local dmv.
But in the event of an at-fault accident, you’ll be on the hook for it out of pocket.
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