The Bogleheads' Guide to Investing

If you have a good health care plan you can skip coverage for medical payments too. You can reduce the cost of homeowner’s, renter’s, and auto insurance by taking the largest possible deductible you can afford. You’ll also probably be entitled to a discount if your home has a security system, smoke detectors, or fire sprinklers. Auto insurance discounts are often given when your car has a security system, antilock brakes, or certain types of air bags. Be sure and tell your agent if your car has them. Third, you need to protect yourself against potential lawsuits that could wipe you out. In our litigious society, it’s an absolute must. Purchase a personal liability umbrella policy of at least $ 1 million, or an amount to cover your total net worth. Umbrella policies are relatively cheap for the amount of protection and usually sold in $ 1 million increments.