You need it for your car, your home, even for yourself. And insurance isn't cheap!
Tonight, Contact 13 looks at a couple ways you can save money on your next bill.
"Insurance companies make a lot of money by people not knowing how to structure them correctly," says says Las Vegas Financial Advisor Ken Himmler.
One of the biggest expenses you probably have is insurance. But most people make the first mistake right away, when setting up their deductible.
That's the amount you pay out of pocket, before the insurance company will pay any expenses.
"I hear this all the time, well I want a low deductible," says Ken.
You can keep more money in your pocket by hiking your deductible. That's because there's a direct link between your deductible and your premium. The more you're willing to pay up front, the less you pay for insurance coverage.
"As an example. If I take car insurance with a $250 deductible, and I compare it to a $1,000 deductible, that's going to save 15 to 20% off of the annual premium," says Ken.
So if you have access to other funds; like a savings account, a credit card or a home equity loan, use that to cover the higher deductible.
"Do not pay an insurance company to insure a risk that you can readily insure on your own," says Ken.
And here's another little secret for saving money on your health insurance. The next time you visit the doctor's office, ask for a cash price.
They'll typically offer a lower price, if it means they don't have to process the payment through your insurance. But be sure to keep your receipts.
"And when the receipts total your deductible, you can send them to the insurance company," says Ken.
So here's the Contact 13 bottom line. Be sure you completely understand the terms, when getting any kind of insurance. Once you sign up, you're legally bound to those conditions.
And if you have questions or concerns about your insurance company; contact the Nevada Division of Insurance for help.