When you choose situations with lower coverage options, you can take on the risk on your own.
You might, for instance, be able to:
If you can pay for repairs on your own without insurance, don’t buy appliances or home warranties with extended warranties.
If you can, take out only liability and comprehensive insurance with no collision coverage or waive full coverage for a car that has little value.
When the car’s value is low enough that you can make repairs or buy a new one without relying on an insurance company, you can do this.
Choose not to insure items like jewelry and valuables that are limited in coverage on home insurance policies with floaters and endorsements.
To pay for your own replacement of these items, you can use your self-insurance fund.
If you have the money to cover your losses yourself or are willing to take a loss if it comes your way, these examples are only useful.
