Insurance

Buying protection, not returns.

What to insure

Insure losses you could not absorb: your home, your income, your liability to others. Insuring small affordable losses transfers money to the insurer for convenience.

A higher excess lowers the premium and is sensible if you hold an emergency fund.
Extended warranties on cheap goods are usually poor value.

Reading a policy

Exclusions decide whether a policy pays. Read what is not covered before comparing prices, because the cheapest policy is often cheap for a reason.