||What Does That Mean?
| The large loss principle.
||Small losses, such as a dented fender, can be paid for with savings. It’s not the frequency of a loss that matters but the dollar amount of potential loss.
| Ask about insurance discounts.
||You may get a lower premium if you complete a driver education course, install a car anti-theft system, drive only short distances, or buy more than one type of insurance from the same company.
|Know that a person's past record influences insurance premiums.
||Young male drivers generally pay higher premiums for car insurance than females because, as a group, males are involved in more accidents. But, males can lower the cost of their insurance by having clean driving records and buying cars that are less likely to be stolen.
|Just because auto insurance is required by state law and homeowner's insurance is required when people get a mortgage (a loan to buy a home), doesn't mean you have enough coverage.
||Car insurance liability limits required by many states are very low and don’t begin to cover the real liabilities for injuries or property damage. You should buy at least a minimum of $300,000 bodily injury and $50,000 property damage liability.
|When looking for a job, ask about types of insurance that are provided by an employer, such as health insurance or life insurance.
||Employee benefits often can be worth thousands of dollars you otherwise would have to pay for yourself.
|Shop around for insurance as you would any consumer product.
||Compare the cost of a specific amount of coverage with at least three companies. Ask about premium costs, lifetime maximums, and special discounts.
|Many young adults are covered by their parent’s health insurance until a specific age.
||Before you are dropped from your parent’s policy, find replacement coverage. Ask your parents if they would keep you on their policy. If not, possibilities include a student health insurance policy or health insurance as a job benefit.
| Buy it when you don't need it.
||After you have a car accident or have become ill, it may be difficult and expensive to buy insurance.