First, Have You Ever Known Anyone Who Has Lost Their Home Or Car

For a lot of us, it is exceedingly difficult to justify spending money on something that we will probably never use.

Yes, we all spend large amounts of money on insurance even though we all know that we will probably never use it for anything. But we all do it, and we do it more often than we would like. While it is true that health insurance and dental insurance do indeed come in handy, it is much more difficult to see the reasoning behind dropping thousands of dollars each year on home and auto insurance. The answer lies in a seemingly simple series of questions. So why do we spend so much money each year on home and auto insurance when we will probably never end up using it? First, have you ever known anyone who has lost their home or car? As for the car, it must have been totaled in an accident.

They could have lost their home because of some natural disaster or because of a fire caused by their own foolishness. Second, of the people you know who lost their home or car, how many of them had more than enough money( without any insurance coverage) to replace it? Third, if you lost your home or car, would you have enough money to pay to replace it right away? If you did not know anyone who lost their property, then just skip down to the next paragraph. These questions, as simple as they may seem, actually provide a lot of insight into the whole desire to spend money on insurance for your home or your car. Next, when you think back about that person who lost their home or car, most of them were not able to replace it immediately after it was destroyed. To start with, when you really start to think long and hard about it, there is a good chance that we have all known someone who has lost their home or their car as a result of an accident or natural disaster.

They were left without a car, without a way to get to and from work, for several days or even months- certainly not a productive situation. Most people may only have a thousand dollars or so saved up for such emergencies- and that is why it is so important to own home and auto insurance. Finally, there is a good chance that you do not have enough money to replace your home or car should something terrible happen to it.