Identify the type of coverage you require

This is just something that you should think about, if you have a vehicle that’s worth not a lot of money, should you purchase full insurance cover? For example, a friend of mine recently purchased his insurance for a vehicle worth $800 and his insurance cost more than the vehicle. If you are faced with this scenario you should look to see if you think the policy is worth it, if not then get a cheaper policy.

Always look for discounts!

There are always tons of discounts when it comes to auto insurance, so make sure you check what options are available to you. If you have more than one vehicle, many insurance providers now offer brilliant ‘multi-car’ discounts, so if this applies to you check out your options. Also, have you considered getting your home and auto insurance from the same provider? You can make big savings by combing your insurance policies.

If you are a young driver or you are just learning to drive, you could consider choosing a policy that offers a good grades discount. If you are doing well in school, then you will get a discount on your insurance policy, it’s that simple.

Ask for higher deductibles

Asking for higher deductibles is very popular as it can decrease your insurance cost by up to 10%. The higher the level of deductible that you choose the more the percentage you save will be. However, you should make sure that the amount you choose is realistic should you actually wish to make a claim. If you have an accident you will have to pay the deductible amount before your policy will come into play.

Compare policies

Comparing as many insurance policies as possible is the best way to save on auto insurance. Use a price comparison site and compare as many policies as you can, all you have to do is enter you details as if you are filling in car insurance quotes. You should then be presented with a list of insurance options available to you. You can then identify what each policy is offering and you can choose the cheapest option that offers the best value for you.

Check the extras on your policy

When you receive an auto insurance policy, there are often extras that get included such as health and legal cover. If you don’t need or want these extras, ask for the insurance provider to remove them, it can result in a big drop in the cost of your insurance policy.

Monitor your credit record

Insurance providers often look at your credit record when you apply for a quote from them, so maintaining your credit record to the best of your ability is a good way to save some money. Maintain a good credit record by paying your bills on time and try not to get yourself in too much debt, it makes you look like a reliable purchaser and the insurer will therefore offer you a bigger discount.

Bio:

This article was written by Andreas Nicolaides, a finance and money saving author for Money Supermarket.

The thing is that he doesn’t want/need/care to sell you a TV (he knows that you have made up your mind and that you will leave the store with a giant screen anyways!). He wants to sell his extended warranty. His whole pitch is based solely on how great the extended warranty is while your life would suck so much if you don’t buy it.

For every $100, the store gets $50 to $60 in profit!

According to Eric Arnum, chief editor of Warranty Week, here’s how $100 in extended warranty is split:

$50 in profit

$30 in administration fees (gotta love paperwork!)

$20 only is actually used towards actual claims.

I’m not surprised that $7.5MM were made from extended warranty sales in the USA in 2004 (according to Warranty Week).

When you think that an extended warranty could cost around $500 for a big TV, you can figure that the store makes as much money out of the extended warranty than from the TV itself!

What are your chances?

According to Consumer Reports, the chance of having a defective plasma screen within the first 4 years is only 3%! It jumps to 12% when you are talking about a refrigerator… Even then, the cost of an extended warranty can go as high as one third of the original cost.

So far, in my own experience, everything I bought new (tv, computers, furniture) has always lasted me more than 3 years (which is usually the longest any extended warranty period goes for). My first tv is still up and running (since 1998) and my “new” plasma TV is already 5 years old! I’ve had my washer and dryer for the past 8 years too… nothing to worry about so far!

Extended warranty‘s biggest weapon: fear!

Fear is one of the biggest motivators in life and any good salesman knows it. They will ask you what you will do if your TV breaks in 6 months. They will amplify the potential problems you will have when you will contact the manufacturer directly. He won’t forget to mention that you will be on your own, that you will have to ship your goods by Purolator and that it will take forever to repair.

By playing the fear card, he will take away the rationale behind your real chances of buying the worst item in the store. Unfortunately, it works really good in most cases…

What are your options other than extended warranty to protect your purchase?

So if you still think that you need an extended warranty (because we all think how disappointing it would be to drop $2,000 in 13 months to buy another TV!), you have a few options to explore.

When it comes to protecting major purchases such as a plasma TV, computer or refrigerator, you basically have 2 options:

-         Request to read the extended warranty contract and make sure that most of the stuff is covered.

-         Pay with a credit card with an warranty extension (usually, most good credit cards double your warranty up to 2 years additional).

I actually use the credit card option. My Platinum MasterCard (from National Bank) offers me a great protection plan (double the warranty up to 2 additional years). Therefore, I don’t have to mind much when I buy a plasma TV (this jump the warranty to 3 years). Everything is covered according to the manufacturer’s basic warranty (which includes most of the “normal” stuff that could break).

While I have never had to use this feature (I guess it’s the living proof that we don’t really need an extended warranty), the process seems quite easy: you need your original bill, your credit card statement, a formal option on the state of your “broken” good and a insurance declaration.

I am actually in the process of finding out if I can use it to get my laptop screen working perfectly again (I have pixel bars showing here and there). The problem is that I didn’t keep any of my receipts, nor my credit card bills. My latest research showed that I didn’t purchase it with my main credit card (which I think I didn’t have 2 years ago…). So I am still looking to see if my other credit card has the same extended warranty feature… more news later on!

Picture this: a nice evening with friends, they take 2 cars to go somewhere after a nice dinner, the road is a bit slippery (it’s a real winter in Montreal after all ), the first car does a U turn since he just missed his turn, the other car follows… BANG! We have a bumper that just kissed the door of the other car.

How stupid do you feel? You just hit… your friend’s car. Of all the car accidents you could have, this is probably the best story to tell when you are with your friends around a pitcher of cold beer. Well, this is exactly what happened to 2 of my friends a few weeks ago.

We had a good laugh (nobody got hurt and they even got the nicest cop around to complete the paperwork and a guy on the street brought them coffee and donuts… I’m telling you, people from Montreal know how to live ). However, the rest of the story got me thinking about the most important thing about car insurance; filing a car insurance claim.

Car insurance cheap quotes first?

When we look for car insurance, most of us will consider only one criteria: we want the cheapest insurance quote. However, once you are pretty happy about your car insurance premium, the second factor (the one that will really determine if you have good car insurance or not) is how easy it is to file an insurance claim.

We don’t really think about this part until we get into a car accident. Even myself, I’ve been looking for the cheapest car insurance quote for the past 12 years (oh boy, that doesn’t help me stay young…). Yet, I have never made a claim from my car insurance company so far (knock on wood!) so I don’t really know how great my car insurance is…

Back to my friend’s story (and how his car insurance dealt with him!)

I’ll tell you upfront, my friend is with TD Insurance. He got a nice quote since he went to a school who has an affiliation with Meloche Monnex (who belongs to TD Insurance group). So his first criteria was no different than mine when he picked his car insurance: he wanted a cheap car insurance premium… period.

But does cheap premium means cheap service? Let me tell you that it is not the case with TD! Right after filing the paperwork with the police officer, my friend called his car insurance company to explain the situation. The next morning he drove his car to a garage (as instructed by TD) and got a courtesy vehicle right away.

Filing the car insurance claim paperwork was easy, people who served him were easy to deal with and proactive.  My friend didn’t have to wait long to get his car back. This is what we call a great service experience!

I am often the first one to step up and tell the world how bad customer service was at one place or another (remember my Roger’s Story, my friend’s fight with Bell or my Baton Rouge’s friend story?… go see them, you’ll have a good laugh ). But when it is the time to recognize a company is going above what we can reasonably expect, I will also step up and tell everyone. So here it goes:

TD CAR INSURANCE ROCKS!

(Isn’t this a great plug? Hahaha!)

But seriously folks, I wouldn’t write about it if I found they weren’t great So if you are looking to get cheap car insurance with great service, I’ve picked a few car insurance companies here:

TD Car Insurance

Enough said about them, to get a quote, just enter your postal code there in the add above, the process is easy and it doesn’t cost anything. On top of that, you don’t even have to talk to anybody or have anyone calling you… simply love it!

National Bank car Insurance

They are usually very picky in their drivers’ selection (almost no tickets, no insurance claim, etc) but they offer very cheap insurance quotes.

Royal Bank Car Insurance

What can I say besides; I love the insurance pendent of any Canadian banks? Seriously, they are solid and reliable

Belairdirect Car Insurance

They seem to be pretty aggressive on their pricing too. However, they are fussy if you drive in the USA and I have not heard anything back from them with regards to filing an insurance claim…

Kanetix.ca Car Insurance Quote Service

You can search for the best car insurance quotes among the above listed companies (and many others). Great tool to make a quick (and free!) search on the web.

One optional benefit for coverage includes income replacement. A car wreck can leave you disabled and replacing your income may become necessary. Weekly payments can be made that total up to 400 dollars. With income replacement, benefits the payments can increase to $600 or even to $1,000.

Income is not the only loss that can occur when a car accident occur. Medical, rehabilitation and attendant care benefits can also be covered through a car insurance plan. This optional insurance benefit can cover up to $1,000,000 in certain costs and that is raised to $2,000,000 when the accident is disastrous. This type of insurance benefit can cover costs with chiropractic treatment, dental costs, and other medical care.

Another optional coverage benefit is dependant care. Young children are often affected by the effects of a car accident. Being an employed parent at the time of the accident is required and having to pay for childcare as well. With insurance dependant care benefits, $75 is paid for the first child and $25 for each additional child.

With some car accidents death can occur. It is a good idea to have optional coverage that can help with this. The spouse of the deceased will obtain a monetary amount, usually $25,000, in the event of this tragedy. With added benefits, this can increase to $50,000. Children can receive $10,000 and $20,000 with extra benefits. Funeral costs are also compensated with $6,000 without added benefit and $8,000 with the extra.

When injured in a car accident that can affect income as well as those that care for others, caregiver benefits are a great addition. If you are a full time caregiver at the time at the automobile accident, this added bonus can be a wonderful safeguard. The optional coverage provides $250 weekly and $325 if you add the caregiver benefits to the plan. It also pays for dependants. Generally, it is $50 weekly for each, but can increase to $75.

disclaimer: this post was offered by TD Canada Trust

Yesterday, I had outlined 7 questions about insurance. Today, we are looking at 8 more interesting questions you may have about insurance coverage:

8. How can I ensure that I’m making an apples-to-apples comparison if I’m price shopping among several companies?

A:  Your agent will be the biggest helper in this situation. He will actually play the role of “translator” to make sure you understand complex insurance terms. You will probably have to ask a lot of questions to make sure you understand. Don’t be afraid to ask, it’s the agent’s job to answer!

One more point: there is no free lunch in finance, nor with insurance! If there is a huge difference in the insurance premium, there is probably a huge difference in the coverage!

If you need third party advice, there are good associations that provide people with assistance such as the Insurance Information Institute; and industry experts like Ben Baldwin, who wrote The Complete Book of Insurance. There are other personal finance experts who may also be helpful.

9. How can I make sure that my insurance decisions fit into my overall personal financial picture?

A:  Your agent should help a lot with that.   If you have multiple lines of insurance or even other financial services products with State Farm, your agent can help you to see the big picture – understanding your total financial situation.   It’s also absolutely critical that as you evaluate your overall situation that you think about how your individual insurance policies fit into your preparations for financial emergencies – and you should look at it across policies, including auto, health, etc.   Understand what your deductibles and other out-of-pockets could be and do your best to have an emergency fund that takes those factors into account.

10. What is the impact on me if I file a claim?  Explain to me why my policy goes up when I make a claim?  How is this protecting my financial needs if my insurance company raises my premium?

A:   Statistically speaking, if you have an accident, you are more likely to have another compared to an individual who never had one. This is why your premium can increase after an accident. However, depending on your client status, you might benefit from insurer “forgiveness” and have a “free” accident.

11. What are the most overlooked discounts that are relatively easy to get?

A:   Discounts that are tied to changes in your life or behaviors are probably the most often overlooked.   Things like a student going away to school, students with good grades and safe driving records can all help you qualify for a discount.   Multi-car and multi-line (having auto and homeowners’ or renters’ insurance) discounts are also important to keep in mind.

12. How frequently should I review insurance policies to ensure they are up-to-date and meet my needs?

A:   As a rule of thumb, I would suggest once a year. Your contracts usually renew on a yearly basis and it allows you to contact your insurer in order to let him know about any changes in your life (getting married, finishing school, moving, having a baby, etc.). Your insurance agent will tell you if your new status should affect your insurance coverage or insurance premium.

13. How can I tell if an insurance agent is being “straight” with me, or just trying to sell something else?

A:  I’d say that your best bet is always to shop around the first time you are about to purchase insurance. Get 2 to 3 opinions and ask each rep why you received a different proposal than the other. Also, ask them how they are compensated. By law, they have to tell you how they are rewarded when selling insurance. They don’t have to tell you how much, but they sure have to disclose if one policy pays more than another… that is, if you ask . Since State Farm offered me a lot of information to write these 2 posts, I must mention that they said that their agents only sell State Farm policies, therefore, they are non-biased in their product offering process.

14. Do my kids get a discount when they buy a policy with the same company that I have been with for years and years?

A:  State Farm along with many other insurance companies offer a teen driving safety certification that can carry a pretty significant discount.

15. Will a poor credit rating influence the coverage I qualify for and my premiums?  How do I know if an insurance agency is investigating my credit report?  Is that legal?

A:  That’s a great question for your agent.  The laws vary by state.   Good organizations to reach out to for more information are the Insurance Information Institute and the National Association of Insurance and Financial Advisors

In Canada, they actually have to ask for your permission to conduct a credit investigation. You are allowed to say no, but you could benefit from additional discounts, if you have a great credit score.

Insurance, is there a more complex theme in personal finance than insurance? If you look at the furious battle of comments over my Primerica articles regarding insurance, you will see many points of view and terms (those guys brought the discussion quite far actually!). I had recently been contacted by State Farm who provided me with a list of 15 questions and answers about insurance. I have gone through the whole thing and posted a summary of the answers below:

1. How do I know that I’m getting the right amount of coverage for my situation – not overpaying for things or leaving me exposed?

A: – Find an agent that you trust with whom you feel comfortable. You should be able to find an insurance agent with qualities close to those of your trusted financial advisor. He should answer all your questions with clear and easy to understand language. You want to make sure you understand what you are signing for. In the best of both worlds, your financial advisor should be able to give you sound advice or refer you to an insurance agent that is trustworthy and competent.

- Then, shop around. It never hurt to shop around and meet with 2 or 3 insurance agents before making your decision. You will then see if your insurance coverage proposition matchs your needs (example: each of them provide similar proposals.)

2. What are the advantages of having different types of insurance policies (home, auto, life, etc.) with the same provider?

A:   – Getting a big discount! I actually gathered all of my insurance policies with one provider and I was able to save a lot of money! State Farm actually offers a discount up to 40% on their insurance policies if you take all your insurance coverage with them.

- Since the insurance market is pretty rough, most insurers provide discounts if you have more than one car insured or they will offer loyalty rebate upon renewal.

- Dealing with only one insurance provider makes it easy and convenient too. Many times I see people in my office with their briefcase full of statements. They actually don’t even know what coverage they have anymore!

3. What disadvantages are there of having multiple insurance policies (home, auto, life, etc.) with the same provider?

A:  There are not many disadvantages to having only one provider but the choice of which one becomes very important. Look for a company with a strong heritage, community involvement and a track record for fast and fair claim processing.

4. How can I understand what comprises a good policy for my situation under each of the insurance categories?  Language is complex and difficult to understand.

A: The best way to determine the right policy for yourself across the different categories of insurance (home, auto, etc) is to speak directly with an agent in-person, make sure he/she knows your current situation and what security you’re looking to get out of a policy.

5. How does your company make sure that I can get smart, trusted advice if my personal situation changes?

A:  This is a tough question to answer because it relies on trust. Your insurance agent should be available and offer you a client-focused service 7/24/365 to make sure you receive the proper support at any given time (Murphy’s Law dictates than something bad will happen at the worst possible time!) 8-(

6. What can I do to make sure that I get all of the discounts I’m entitled to?

A:   Talk a lot! For example, State Farm says they have several types of discounts. To make sure you are eligible for all of them, talk about:

- Your driving experience (tickets, accidents, years of experience)

- Your marital status (married people get discount!)

- Your age

- Your neighbourhood

- How little you use your car

- Your credit score

- Potential insurance coverage

- Contract duration (I got a discount for taking a 2 year contract!)

7. Are there benefits to renewing with the same company when my policy ends?

A:   Absolutely.  For starters, you can save money. There are renewal discounts that can save you between 15% and 25%, and, at State Farm, the first one kicks in after just three years.

All right, enough insurance for today, I hope it helps you get your feet wet in the mysterious world of insurance coverage! Tomorrow, I’m coming back with questions 8 to 15!

The truth, however, is that investing a little time to periodically review your car insurance can save you thousands of dollars because, unlike things like gas prices, auto insurance is one recurring expense that car owners have control over.

In my case, my wife and I had my old 1990 Toyota Celica and a 2002 Camry. We were paying a little less than $500 per 6 months. We had no comprehensive or collision on the Celica, and we had a $1,000 deductible on the Camry.

Then, I decided to sell the Celica because it was almost 20 years old and it was just sitting on the driveway. Since my wife is a homemaker and I work from home, we really didn’t need two cars. After I sold the Celica, my insurance dropped to about $400 per 6 months.

Since my circumstance had changed, I decided to get quotes from some other auto insurance companies. I kept the $1000 deductible and made sure I checked all options for low mileage. I ended up getting a great deal from Geico for slightly less than $200 per 6 months! For just investing a few minutes of time, I will save almost $400 per year.

The fact is that, today, car insurance policies are very standardized, and it is very easy to compare different companies for apple-to-apple coverage. As long as the insurance company is in good standing with your state, has a good A+ financial rating, and has reputation for paying claims fairly, then you should shop on price. There is no reason to pay extra out of habit, or a feeling of loyalty.

Here is a summarized list of 6 tips for reducing your auto insurance costs:

1. Periodically shop around for quotes from other insurance companies.

2. Reduce coverage on old cars. The rule of thumb is to drop collision and comprehensive coverage on any car that is worth less than 10 times the yearly premium.

3. Raise deductibles. Self-insure yourself for small problems and just let your car insurance protect you from catastrophic losses. According to the Insurance Information Institute, just by increasing your deductible from $200 to $1000, you can save 40% or more on your premiums. In my own experience, if you are a competent driver (and have an emergency fund), a $1000 deductible for auto insurance is ideal. Anything higher will not offset your premium that much.

4. Double check that you are getting all the discounts that you are entitled to. Common discounts include things such as anti-theft devices, having anti-lock brakes, being free of accidents and claims, taking a defensive-driving course, and having multiple policies through the same insurer (i.e. both your auto and homeowners insurance). At the same time, don’t be afraid to split your insurance among carriers if it saves money. I saved money by switching my auto to Geico and leaving my home owner’s insurance with my old company, even though I lost the multiple discounts.

5. Maintain a good credit rating. Insurers will give you better rates because higher credit ratings correlate with fewer claims.

6. If you do not drive a car very often, check to see if you qualify for any low mileage breaks.

Praveen Puri writes about business, finance, trading, and passive income on his Simple Trading System blog. He is the author of “Stock Trading Riches”, and has been a full time trader, software developer, consultant, internet marketer, and vice president of a major bank.

image source: stallio

Last Friday, I explained how the life insurance on a mortgage works. However, if you do not combine the life insurance with another type of creditor insurance (such as disability insurance or critical illness insurance), chances are that your life insurance will become quite expensive.

If you shop around and look for other option, you will soon come to see an insurance broker/agent that will look at your overall insurance needs. There will obviously have an amount to be covered that comes from your recent mortgage. Here’s a way to cover your mortgage with a term life insurance:

#2 Term life insurance from a broker

Term life insurances are pretty easy to understand. You pay during a specific period of time (usually 10 years or 20 years). The insurance coverage last the very same time. Therefore, you benefit from a temporary insurance coverage that will eventually expire.

This is actually a good thing as your mortgage won’t be eternal as well. Many term life insurance offer conversion option into a longer term or a whole life / universal life insurance policy. In a case of a mortgage, this could be useful if you plan to sell your house and buy a bigger one with a similar mortgage in the future.

While the T10 and the T20 are the most common type of term life insurance, I know that there are other terms that could fit best your insurance needs. You can also use a combination.

IF you have a 300K mortgage over 30 years. You would take a 100K T10, 100K T20 and a 100K T30 (if it exists). Therefore, your insurance coverage will drop every 10 years as your mortgage balance does over time. You will be “fully covered” during your 30 years but you won’t have to pay for a full 300K T30 either.

The price for a term life insurance is usually much lower than the regular creditor insurance. Even though it is the same price, remember that the full amount of coverage is payable upon death during the time of the contract. If you pass away after 19 years of paying down your mortgage, the lump sum payment from the bank will be pretty far away from the original mortgage amount! We never look for insurance in order to “make gift” but getting extra money when you lose someone you love could never hurt!

Whenever you are about to sign your new mortgage document, your banker will ultimately talk to you about creditor insurance. He may sound annoying but he must explain the different creditor insurances that exist to cover your mortgage (it is required by law). It is actually very important to have the right amount of coverage and the right type of insurance. Some people may think that it’s gambling on your own life or that insurance is some kind of hidden tax. However, the truth is that if you pass away and you leave a spouse and kids behind, they will be in the deep hole if you were not properly insured.

So if you plan on dying while having a mortgage (this is my black sense of humour ), you have two options to cover your property:

#1 Life insurance on your mortgage

This is the usual insurance coverage offered by banks when you contract any credit with them (personal loan, line of credit or mortgages (including HELOC)). As you take your credit agreement with bank X, you have no other choice but to take their insurance if you want a bank to pay for your debt.

The mechanism behind a life insurance on a credit is quite simple. Upon death, the bank will erase the outstanding balance off its book and the estate is not responsible for this debt anymore. On a regular mortgage, you will have equal premium to pay during the amortization. As long as you do not change the mortgage contract, your premium will stay the same and you will still be insurable even if your health condition changes. However, paying a $100 monthly premium to cover an outstanding debt may seem appealing at the beginning of your mortgage (when you owe 200K) but become a pain when you are at the end of your contract and you only owe 20K…

Since the Home Equity Line of Credit has increased in popularity over the past 5 years, the creditor insurance product evolved accordingly. In fact, the life insurance on a HELOC will cover the average balance of you line of credit and the premium will be calculated accordingly. Therefore, you will pay a smaller premium if you make a lump sum premium. However, some contract will also make your premium increase according to your age. Therefore, event thought you will still remain insurable as long as you have your debt, your premium might increase or decrease depending on how you use your line of credit.

If you shop around, you will notice that life insurance on mortgage alone is probably more expensive than a term life insurance that you will take with a broker. However, the term insurance might not cover the full length of your mortgage (most of the time you can take T10 or T20). However, life insurance on credit gives you the opportunity to add disability insurance and critical illness. As opposed to the life insurance, the later two will benefit to you and not to your estate

Monday, I’ll describe the term life insurance to cover a mortgage. Enjoy your weekend

image source: flickr

People that know me know that I am very hard to convince of something. It is nothing related to be closed minded. Actually, I am very opened minded. On the other side, I ask a lot of questions in order to understand correctly and if you don’t have the answer, than I won’t change my opinion.

I already wrote about the fact that I didn’t believe much in credit insurance product for several reasons. However, I decided to go further in my research and meet with the “insurance guy” from our company one more time and ask him why the hell should I subscribe for credit insurance on my house.

Some of his reasoning was the usual “insurance bullshit” like: have you though of your wife and children? You know so and so, he got cancer and couldn’t pay his mortgage because he was seriously ill, or the famous ahh, it’s your choice.

When we pass that step (I cut him pretty much in the middle of his speech), he surprised me. While the emotional reasons didn’t have any effects on me (when it comes down to numbers, you lost me at hello if you try to play with my emotions… show me facts, show me proof!), he was able to bring good points:

#1 Get insured while you can

Since I am in favour of getting the biggest line of credit while you have a good financial position (not to spend but as an emergency fund), I can definitely agree with this point. When you get your insurance in the 20’s, you are sure to get insured and to get a good price out of it. The good thing about insurance credit is that it lasts as long as you have your debt. Considering that a mortgage while last 25 years or more, chances are that you can get sick or die during that period of time.

#2 Combination of products makes the insurance very cheap

Another important factor, as I mentioned in my previous post against credit insurance product, is that when you combine more than one type of insurance (you have access to life insurance, critical illness insurance and disability insurance), the overall price is quite competitive. Actually, it is very hard for insurance agent to find a better deal elsewhere.

#3 Insurance premium on line of credit depends on the balanced used

Therefore, it is free when your balance is at 0. Now you are asking: why insure a debt that is at 0 since I won’t get any money back if something happens to me? Easy answer: got back to reason #1. If you are insurable and it doesn’t cost a thing to get it, why not getting insurance for free while you are a good candidate?

As you can see, there are still good reasons to subscribe to credit insurance product. One thing is for sure; regardless if you take credit insurance or not, make sure that you are well insured overall. Life really sucks when something bad happens and you don’t have the proper coverage!

image source: flickr