Insurance is used to protect against loss. There are fees involved and the risks are spread out among many policy holders so that people suffering from a loss get compensated by those not incurring a loss minus administrative fees and a profit by the insurance carrier.

How many claims can you have before the insurance company will either not renew your policy, cancel your policy or raise your rates? That depends on the carrier, but illustrates how if you have a high loss history, insurance companies will commit the capital needed to continuing to cover you.

Because of the administrative fees and profit margins for insurers, insurance is considered a poor investment. It should always be classified as an expense. That fact has become burry with insurance fraud and some insurance products being packaged with investment choices.

Insurance spreads your risk among many insureds who are not suffering loss. This helps ease your pain when loss does occur. No one wants to have their home, car or self damaged. But when it does happen, having the right coverage should put you art ease.

• Even without home insurance, the federal government will help me in a disaster.
• I insured me home for the amount that I paid for it.
• Getting homeowners insurance from my auto insurance carrier will save me money.
• Making home improvements will not lower my homeowners insurance premiums.
• Improving my home security won't effect my homeowners rates.
• My age won't affect my homeowners insurance.
• My credit won't affect my homeowners insurance.
• Shop around and switch policies when you spot something cheaper.
• Once you get your home insured, your wok is done.
• I can't buy private homeowners since I'm on a government homeowners plan.
• Homeowners insurance is something to do AFTER I decide on the home I want.

• Red cars are more expensive to insure.
• Personal insurance covers me while I deliver pizza or newspapers.
• Comprehensive insurance covers the car against all damage.
• Insurance carriers raise rates whenever they want.
• Getting auto insurance coverage from my homeowners carrier will save money

• People with medical problems cannot get insurance.
• Once I buy life insurance, I can't lower the payment on that policy.
• Insurance carriers raise rates whenever they want.
• Getting life insurance from my auto or home insurance carrier will save me money.
• My dangerous hobby will make me unable to get life insurance.

• I am better financially with low deductible health plans.
• I am better off with a lower office visit / copay charge.
• Health Insurance will cover all long term care costs for seniors.
• I can’t afford health coverage for my children.
• I was denied health insurance once, so I’ll never be approved.
• I have to be a US citizen to get coverage.