I have insurance, but I don't have much faith in it. When New Orleans flooded, I figured that because we had insurance we'd be fine. We did come out fine, but it took several years of fighting with the insurance companies. We've also had several problems over the years of getting insurance companies to pay various healthcare and auto costs that were supposed to be covered.
But in order to drive, and to have a mortgage, and to be "responsible," our society deems it necessary to have insurance. However I think I'm paying way too much for it. In fact, insurance costs wind up being more than 25% of my salary. It costs much more than the national average to have homeowners and auto insurance in New Orleans, so I bet that I pay more than you. I pay $15,033.79 for various forms of insurance.
Here is a breakdown of what I pay for insurance annually:
$4,022 Homeowners Premium (Louisiana Citizens for $355,000 dwelling & $177,000 personal coverage)
$645 Flood Insurance (American National for $250,000 building and $100,000 content)
$173 Termite Insurance with Terminex
Then we have a rental property on South Hennessey:
$2422 Homeowners (Louisiana Citizens $200,000 dwelling)
$458 Flood Insurance (American National for $224,000 coverage)
$151 Termite Insurance with Terminex
$2,213.76 for healthcare coverage for me, Kalypso and Gilgamesh with Humana.
$708.72 for dental insurance for me, Kalypso and Gilgamesh.
$1034.17 Therese's health Insurance
$53.77 Therese's Dental Insurance
$122.17 Vision Insurance
Auto & Scooter Insurance
$2,292.20 for 2001 Toyota Highlander and 1966 Pontiac Catalina for Therese, myself, and Kalypso with Geico.
$140 Vespa Scooter Insurance for Therese and me with Geico.
$470 annual payment for me for a $500,000 policy with American General.
$128 for Therese for $200,000 policy with Genworth.
I know I can save money by shopping around for homeowners and car insurance. My goal is to have this bill be under $10K within one year.