Almost any risk can be covered by insurance, but only a few coverages are good values. Always weigh the potential financial risk with the cost of the premium to insure that risk. For example, if raising a deductible on an automobile collision policy from $500 to $1000 cut the premium by $200 annually, you would save $200 every year by accepting $300 more net risk ($500 minus the $200 yearly premium) -- not a bad risk to take. If you go two years without a collision claim, you are ahead of the game. In this example, paying $200 annually in order to insure $300 (net), is not a cost-effective use of your premium dollar after the second year.