MAKE SURE YOU WEIGH UP THE RISKS

Consider if self-insuring is right for you. You would be taking on a risk which is otherwise the insurer’s.

At worst, you might be unable to afford the right treatment for a pet, for example. A pricey incident may cause you short-term cash-flow issues.

Check the alternatives. Consider keeping insurance but reducing your excess to lower premium prices.

Investigate the costs. Work out what typical incidents cost if you self-insure and think about putting more than your insurance premium aside to allow for worst-case scenarios.

Be flexible. Reconsider moving back to insurance if your situation changes.

Remember to review the amount you put in savings as incident costs will increase due to inflation.

Be disciplined – ringfence your savings even if you cannot always afford to top up by the same amount.