Yes, it's a gamble, but it's also a gamble to not have the insurance that's right for you.
You might pay for an insurance policy for years with nothing ever going wrong. But if something serious does happen you might be thanking your lucky stars you were insured.
Deciding what to insure and how much cover to buy is a tricky balancing act because salespeople will often try to convince you to pay for insurance that you may not really need.
Being MoneyFit means knowing when it's worth taking out insurance and when it's likely to be a waste of money.
For example, insuring the contents of your home against fire and theft is probably a good idea if you own a lot of stuff because it might cost thousands of pounds to replace.
But paying an extra £5 a month on a two year contract to insure your smartphone is probably very bad value – over the two years you'll be paying £120, which may even be more than the phone is worth after two years.
One thing's for sure, you definitely need motor insurance, so don't risk driving without it.
Try our Buying insurance checklist to help you decide whether you need it or not.
Different kinds of insurance
We cover the following insurance on MoneyForce, but there are plenty of others:
Whatever type of insurance you need, it pays to know exactly what is covered so that, if you ever need to do so, you can make an effective claim.
Be prepared – keep good records
Being prepared means you keep everything you need to hand just in case you need to make a claim. This means keeping receipts for the things that are insured, and keeping your policy documents somewhere safe.
If you've insured valuable objects it's a good idea to take photographs showing their condition.
Making a claim
If you need to make a claim on your insurance policy see Making a claim and if your claim is rejected, see Dealing with rejection of claims.