By not paying an insurance company to cover your back in the event of an accident, self-insuring can help you save money on your premiums. This can be done by:
Deciding to build up a self-insurance reserve or an emergency fund A self-insurance fund is a stash of cash set aside for you to use for your insurance needs.
Having enough money to cover losses in assets and savings You’ll need to figure out how much insurance reserve money you’ll need for each kind of insurance. You will be able to decide how much to put aside from your self-insurance fund if you know how you will use it.
