Save money by not Insuring your purchases

by Marcel 11 March 2011

Every time you buy an electrical product the salesman will ask if you want to buy an extended insurance policy. Have you ever noticed that many salespeople today know little to nothing about the products they are trying to sell you, but they can tell you all you need to know about their extended isurance policies? That is because an extended insurance policy is a high profit product, which doesn't really offer you much benefit, but the seller will receive a hefty commission.

Before I go further, we need to remember why insurance exists in the first place. Insurance is there to save you from financial ruin, your house burns down, you crash your car into a Mercedes etc... and not for a small purchase that you can buy after saving for a couple of months.

Say you buy a laptop, or new flatscreen television for about € 800, a typical extended insurance policy will cost you at least 10% of the purchase price, that's more than 80 euros! (Remember, the product already has a 1 or 2 year manufacturers warranty in case it is defective)

Do what I do and put that extra money in a savings account, after a few purchases you will have your very own 'Insurance pot' to use when things go awry. After a few years you'll have a very nice sum saved up to buy something new!

Tags:

insurance

Comments (1) -

CNN
CNN
3/17/2011 3:55:13 AM #

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