Auto and Homeowner's Insurance
Auto insurance and homeowner's insurance are no-brainers. If you don't already have coverage, you probably know that you should. In fact, going uninsured is difficult, because state laws and lenders often require you to have coverage. For these reasons, this section touches very briefly on auto and homeowner's insurance.
Furthermore, you have liability coverage in your auto and homeowner's insurance policies. If somebody gets hurt, the bill can climb to several hundred thousand dollars quickly. Why not let the insurance company take that risk? Yes, it costs money, but it is a small price to pay for peace of mind.
Skipping auto and homeowner's insurance can ruin your credit. Just like a bad sickness can put you in bankruptcy, auto and home repair costs can easily get into the thousands of dollars or more. The risk-toreward ratio simply isn't favorable if you are thinking of going without coverage.
