TIME Money

Why You Might Need More Car Insurance Than You Have

Car accident
Zero Creatives—Getty Images/Image Source Woman on mobile phone after car accident

That fender-bender could be more of a headache than you think

Being in a car accident, even if you’re lucky enough to escape without injury, still stinks — especially if it isn’t your fault. But what’s even worse than the inconvenience and the hassle factor is the reality that, in many states, you might not be completely covered by insurance, even if you’re a responsible driver who carries insurance.

That’s because there’s often a gap between the minimum states require drivers to carry and the amount that would be necessary to cover the cost of an accident, especially if anyone in your car is injured. Even something as minor as taking an ambulance ride to the hospital to get checked out can run into the hundreds of dollars, and costs obviously escalate depending on the severity of any injuries.

Personal finance website WalletHub.com just put together a ranking of the financial risk you face when you get behind the wheel, analyzing all 50 states and the District of Columbia to find out the legal minimum of insurance coverage drivers must carry as well as how many drivers in that state don’t bother to get insurance.

In short, stay out of of Florida and Oklahoma. Florida’s insurance requirements are lower than most other states, and 24% of drivers on the roads there are cruising around without insurance (which, yes, is illegal). In Oklahoma, requirements aren’t as low, but a whopping 26% of drivers don’t bother buying insurance. In Tennessee, Michigan, New Mexico and Mississippi, more than one in five drivers have no insurance.

How can you protect yourself? Unfortunately, it’s likely to cost you.

“In most states, drivers can purchase uninsured motorists coverage to cover their own bodily injuries and/or property damage if the at-fault driver has no insurance,” says WalletHub managing editor Karl Eisenhower.

In fact, in 21 states, you’re required to carry this type of coverage. In some states, you have to carry this insurance to cover property damage costs, while others make you carry coverage for medical costs if you’re hit by an uninsured driver. Eight states make you carry both. Drivers also have the option — and in a handful of states, the obligation — of buying insurance for personal injury protection or medical payments. “[These] will cover your medical bills after an accident regardless of fault,” Eisenhower says. “If you carry one of these . . . you can be certain any medical bills will get paid quickly.”

In states like Florida, where the minimum liability a driver has to carry is a mere $10,000 in coverage per injured person, or $20,000 per accident, getting into an accident with somebody who does have coverage but not enough of it could be a concern, too.

“Underinsured motorists coverage will protect you if your damages exceed the limits of the at-fault driver’s liability policy,” Eisenhower says. In the states of California, Massachusetts, New Jersey and Pennsylvania, a driver only has to have $5,000 worth of coverage for property damage — hardly enough to make you whole if you’re driving a luxury car or your vehicle is totaled.

“Just because someone doesn’t have sufficient insurance doesn’t reduce that person’s responsibility if he or she causes an accident,” Eisenhower adds. Unfortunately, this means you’d have to spend the time and money suing them — and be out-of-pocket for potentially thousands of dollars in the meantime — before getting compensation. If you have extra coverage for uninsured or underinsured drivers, “suing to reclaim costs is the insurance company’s headache, not yours,” Eisenhower points out.

MONEY Insurance

Google May Help You Get Car Insurance

Evidence is mounting that Google will launch an auto-insurance comparison service in the US. A perfect choice for your driverless car!

MONEY medical debt

Couple Gets $200K Medical Debt Forgiven, But Some Aren’t So Lucky

Piggy bank on dark background with band-aids
Roy Hsu—Getty Images

Half of all unpaid bills on credit reports are medical bills, but the median amount is relatively small. Here's why it's a problem for so many consumers.

It’s lovely that the now-famous British couple who made the mistake of having their preemie baby born in the U.S. won’t have to pay their potential $200,000 in medical bills. That doesn’t help anyone else, however. America is teeming with unpaid medical bills. How do we know? The nation’s top consumer financial regulator just published a study showing that half of all unpaid bills that land on credit reports are medical bills, and a stunning one in seven Americans with a credit report have an unpaid medical bill as a blemish.

You don’t have to look far for stories of billing red tape or insurance confusion that causes lead life-threatening consequences. In fact, even while social media and European press rallied behind Lee Johnson and fiancée Katie Amos as they were stranded in the U.S. with their 11-weeks-premature baby, a grieving mother in Ireland warned that lack of health coverage in the U.S. killed her immigrant daughter, 31-year-old Katrina Hennigan. Katrina, who had lived in the U.S. since she was 11, was advised to see a cardiologist, but as a non-insured hospitality worker, she was unable to afford visits with a specialist. She was found dead in her Rhode Island apartment last month. Had Hennigan moved back to Ireland, as her mother had urged, her cardiology visit would have been free.

But stories of maddening red tape and confusion are even more common. In fact, the Consumer Financial Protection Bureau says that most unpaid medical bills are relatively small. The median amount is $200. And 15 million Americans with credit report blemishes have only unpaid medical bills on their reports. Those small bills can have major consequences, however. An unpaid bill of as little as $100 can lower a consumer’s strong credit score of 780 by as much as 100 points, according to the CFPB. Consumers should check their credit reports regularly to look for collection items or mistakes that could be dragging down their credit scores — they can do that for free once a year, and can get a free credit report summary every month on Credit.com.

Why do all these small bills with big consequences remain unpaid? One reason: Billing practices cause massive confusion. Patients frequently receive two, three or even four bills from different entities after a simple doctor’s visit.

Here’s an example provided by one reader:

“For one doctor’s visit I’d pay a copay, and then get billed separately by the doctor, the lab company, and the practice,” she wrote. “Often these bills came months after the original visit. And their accounting codes made it difficult to understand what was covered in each bill. Hospital visits were even worse. For a dislocated finger, I had separate bills from the hospital, the ER docs, the radiology team, the pharmacy, and the lab.”

The CFPB cited billing confusion as a major cause of unpaid medical debt in its report, blaming “indirect affiliation with the debt (that) introduces potential sources of error in collections reporting.”

And another reader put it more bluntly:

“I would love to know what percentage of those bills aren’t paid because the insurer and provider are fighting, with the insured member stuck in the middle. I know I have some of those, and it’s maddening,” he wrote.

Have you suffered a medical billing red tape nightmare? As part of our Debt Collection Files, we look at why bills slip through the cracks, and how even a small paperwork error can have major life consequences. Leave your comment below, on our Facebook page, or email me directly at bob@credit.com.

More from Credit.com

This article originally appeared on Credit.com.

MONEY Ask the Expert

Home Insurance Policies to Skip

For Sale sign illustration
Robert A. Di Ieso, Jr.

Q: I just bought an $89-per-year insurance policy for our sewer pipe. My wife says these kinds of policies (of which I have quite a few) are a waste of money. What do you say?

A: Well, if your sewer pipe cracks over the next 12 months, that’s money well spent. With tens of thousands in excavation, repair, and cleanup bills, you’ll be glad you get paid back for whatever portion of the expense the policy covers (perhaps $5,000).

Of course, it’s unlikely that the pipe under your front lawn will crack this year, in which case you won’t collect anything on your policy except perhaps some peace of mind. Now, $89 certainly isn’t a big outlay if it helps you sleep at night, but consider all of the similar insurance plans and extended warranties you can buy for just about every appliance, electronic gadget, and piece of home equipment you ever purchase.

Those can add up to many hundreds of dollars spent annually on policies that, frankly, have dubious value because of likely coverage restrictions in the fine print, because you may not remember exactly what policies you’ve bought or where the paperwork is if something does happen to a covered product, and because if the company providing the policy goes belly-up, your insurance goes with it.

“As a general rule, I’d advise against buying any sort of extended warranty or product insurance policy,” says Linda Sherry, a director at Consumer Action, a national nonprofit advocacy group based in San Francisco. Those plans are huge profit centers for the retailers, which often pay large commissions to the salesmen who pressure you so hard to buy them.

Most products come with a one-year warranty anyway—and that’s often doubled by the credit card you buy it with (check your card policy). So the extended warranty you buy from an appliance retailer, for example, could be duplicative.

Besides, the point of insurance should be to protect you from financially catastrophic expenses like a house fire, car accident, or health emergency. Smaller emergency costs, such as replacing a section of sewer pipe, a water heater, or a big screen TV, are hopefully the sorts of expenses that you could cover by other means, such as shifting funds from your contingency savings.

If you’re still tempted to pay for certain extended warranty coverage, perhaps because it includes an annual maintenance visit (as with oil-furnace coverage) or free tech help (as with some computer plans), just make sure the price of the annual policy is no more than 10% of the purchase price of the covered product, says Sherry. “Anything higher is overpriced.”

MONEY Health Care

5 Things You Need to Know for Today’s Health Care Coverage Deadline

Today is the deadline to buy individual health insurance if you want to have coverage on Jan. 1.

Since open enrollment began on Nov. 15, almost 1.4 million people have signed up for health coverage through the federal insurance exchange, and another 183,000 through state exchanges. With nearly 7 million people already participating, signups are on pace to meet the government’s projection of 9 million enrollees in 2015, according to the Kaiser Family Foundation.

If you’re one of the many who still need to enroll for 2015 coverage, here are five keys things you need to know before you visit your state’s health exchange website.

1. If you want health insurance on Jan. 1, you must enroll today. You still have until Feb. 15 to buy a 2015 plan, but you will have a gap in coverage if you enroll after today’s deadline. Coverage begins on Feb. 1 for people who enroll between Jan. 1 and Jan. 15. Sign up between Jan. 16 and the end of the month, and coverage won’t begin until March 1.

2. Some states are giving you more time and extending the deadline to get coverage by Jan. 1. For example, New York and Idaho’s exchanges will allow users to sign up until Dec. 20. To find out whether you’re eligible for an extension, visit your state’s marketplace exchange website through healthcare.gov.

3. You’ll be automatically re-enrolled if you bought on an exchange last year and do not renew coverage by today. If the health plan you signed up for is no longer offered, insurers can automatically enroll you in another policy similar to the one you have now. But you can opt out of any plan you’re automatically enrolled in and choose another up until Feb. 15.

4. Skip automatic enrollment and shop again, even if you liked your 2014 policy. The Department of Health and Human Services found that more than 70% of people who currently have insurance through the health law’s federal online marketplace could pay less for comparable coverage if they are willing to switch plans.

5. Costs have changed. Many plans will have out-of-pocket spending limits that are lower than the maximums allowed under the health law, according to an analysis by Avalere Health. But the tradeoff for those lower maximums may be a higher deductible, so be sure to pay attention to both figures when choosing your plan. You can also expect to see your premium change. Depending on where you live, that may be a good or bad thing. The premium for the second-lowest-cost silver plan in Nashville jumped 8.7%, while it dropped 15.6% in Denver, according to a study by the Kaiser Family Foundation.

MONEY Shopping

Why You Should Skip That Extended Warranty

Broken TV
Jeffrey Coolidge/Getty Images (TV)—Oliver Childs/Getty Images (screen)

Buying an extended warranty is almost always a waste of money. But people do it anyway because they misunderstand the true purpose of insurance.

It’s holiday shopping season, and anyone who has recently bought a TV, smartphone, or other expensive piece of equipment has likely been on the receiving end of a hard sell for an extended warranty: That’s a nice television you’ve got there. Would be a shame if something happened to it. And wouldn’t you know it? For a mere $59.99, the salesman can offer a little piece of mind in the form of (overpriced) insurance.

It’s a pitch that works, even on those who should know better. Sure, the TV costs $750, meaning you’re paying 8% extra to protect your purchase. But that’s a good deal when the alternative is paying another seven hundred fifty if the machine ever croaks, right?

As the New York Times’ Damon Darlin points out, this kind of faulty logic comes from our collective inability to price risk correctly. Realistically, the TV you just purchased probably has a very low failure rate—Darlin cites data suggesting only 2%-4% of brand-name TVs turn out to be lemons. So you should really be multiplying the cost of your purchase by the likelihood it will break. In the case of a $750 TV with a 4% failure rate, he suggests an appropriately priced insurance policy would be $30.

But even Darlin is giving extended warranties too much credit. The real reason most people pay too much for product protection isn’t because they don’t understand risk (although that’s probably also true), it’s because they don’t understand the economics of insurance in the first place.

The fact is, all insurance policies are overpriced. That’s the nature of insurance. Whenever you buy a policy, whether it’s for your car, your health, or your television, the company selling it to you is betting you will pay more in premiums than your car repairs or health care will ever actually cost. And these companies employ thousands of very smart people to make sure they’re likely to win that wager.

“Even if you do all these calculations, you don’t think insurance companies haven’t also done the same calculations and for some reason believe they’re going to make money nonetheless?” asks Drew Tignanelli, president of the Financial Consulate website. “The way I look at insurance is that it is not designed to save me from every nickel and dime I will lose. If I try that, I will definitely cost myself more than what I’m putting out.”

So if insurance coverage is intrinsically overpriced, why do we buy it at all? “Insurance is meant to prevent me from running into a financial catastrophe or devastation,” Tignanelli explains. An astronomical medical expense, repair bill, or legal fee is unlikely, but it could mean complete financial ruin. Those outcomes are so terrible that they’re worth paying a premium to avoid.

But no matter how much you love Scandal or Game of Thrones, a broken TV is not a catastrophe—financial or otherwise. Most purchases are cheap enough, and their failure rate low enough, for you to safely bet that the product you bought will work for the foreseeable future.

If you’re right—and in the case of TVs there’s a 96% chance you are—you’ll save money. And in the unlikely event it does break, you’ll either be able to afford a new one, or at the very least go without for a while. There’s also a good chance your credit card provides some amount of warranty protection, or that the cost of repairs will be roughly the same price as an extended warranty anyway.

If you play the odds over time, you’re all but guaranteed to come out on top. After all, the entire insurance industry is built on that very assumption.

Do you have the insurance you really need? Check out these articles to find out:
Homeowner’s Insurance: Covered? Don’t Be So Sure
Here’s a New Reason to Think Twice Before Buying Long-Term Care Insurance
How to Do an Insurance Inventory
You Can Now Buy Health Insurance at Walmart—but Should You?

MONEY Health Care

Why 1 in 3 Americans Is Scared to Go to the Doctor

surgeon removing money from wallet
Paul Tillinghast—Getty Images

More insured Americans are skipping out on health treatments that they need because of cost, a new Gallup poll finds.

The Affordable Care Act kicked into gear over a year ago. And more than 86% of Americans now have health insurance, up from 82% in mid-2013.

Even so, according to a new Gallup poll, a third of Americans say they aren’t getting the medical care they need because of cost.

In fact, more Americans are putting off medical care than ever before in the 14-year history of the poll.

Source: Gallup

Uninsured Americans aren’t the only ones delaying medical treatment. Some 34% of Americans with private health insurance say they’ve skipped out on care because it was too expensive, up from 25% last year. Additionally, 28% of households that earn $75,000 or more report that family members have delayed care, up from just 17% last year.

One likely culprit? Rising out-of-pocket costs. Americans who get healthcare coverage through their employers have seen deductibles more than double in the past eight years.

image (10)
Source: Kaiser Family Foundation, Employer Health Benefits 2014 Annual Survey. Note: Data is for covered workers with a general annual health plan deductible for single coverage.

It’s part of a movement towards what’s come to be termed “consumer-driven health care.”

The thinking is, when patients are more aware of healthcare costs and more discerning about what care they really need, they will also be more discerning in their usage—which in theory would lower costs for everyone involved. Two-thirds of large employers think consumer-driven healthcare is one of the most effective tactics to reduce costs, according to the National Business Group on Health.

But Gallup found that more Americans are skimping on care that they think they really do need. According to the survey, 22% of Americans say they’ve put off treatment for a serious condition, vs. 19% last year. The percentage of Americans who say they put off care for a non-serious condition stayed flat at 11%.

Previous studies have found that when consumers are asked to share more of the costs, they put off both necessary and unnecessary care.

For example, one study found that people on high-deductible plans are less likely to buy expensive, brand-name drugs (which may be sensible), but they’re also less likely to buy generic drugs they need to treat chronic conditions (likely not sensible).

When forced to pay more out-of-pocket, men in particular are more likely to skip care for serious problems like irregular heartbeats and kidney stones.

What’s especially frightening about these findings is that delaying needed care to save money in the short term may result in more costly complications and more difficult-to- treat health issues in the longer term. Skipping the cholesterol screening now, for example, could mean racking up a $100,000 tab for a heart attack later.

Are you avoiding treatment you need because you’re afraid of the bill? Try these strategies to get the same healthcare for a quarter of the price. If you’re on a high-deductible plan, use your Health Savings Account to budget for your expected—and unexpected—costs.

MONEY Ask the Expert

Do You Really Need Medigap Insurance If You’re in Good Health?

140603_FF_QA_Obamacare_illo_1
Robert A. Di Ieso, Jr.

Q: We are in good health and have a Medigap Plan N for 2014. With same expected health in 2015, do we need anything more than Medicare A, B, and D plans? —Norbert & Sue

A: Medigap, a private insurance policy that supplements Medicare, picks up where Medicare leaves off, helping you cover co-payments, coinsurance, and deductibles. Some policies also pay for services Medicare doesn’t touch, like medical care outside the U.S.

This additional insurance is not necessary, but, says Fred Riccardi, client services director at the Medicare Rights Center, “if you can afford to, have a Medigap policy. It provides protection for high out-of-pocket costs, especially if you become ill or need to receive more care as you age.” (If you already have some supplemental retiree health insurance through a former employer or union, you may be able to skip Medigap; you also don’t need a Medigap policy if you chose a Medicare Advantage Plan, or Medicare Part C.)

If you purchase Medigap, you’ll owe a monthly premium on top of what you pay for Medicare Part B. The cost ranges from a median annual premium of $936 for Medigap Plan K coverage to $1,952 for Plan F coverage, according to a survey of insurers by Weiss Ratings. The median cost for your plan N was $1,332 a year.

Even if you didn’t end up needing your Medicap policy this year, however, think twice before you drop it.

If you skip signing up when you’re first eligible, or if you buy a Medigap plan and later drop it, you might not be able to get another policy down the road, or you may have to pay far more for the coverage.

Under federal law, you’re guaranteed the right to buy a Medigap policy during a six-month open enrollment period that begins the month you turn 65 and join Medicare, says Riccardi. (To avoid a gap in coverage, you can apply earlier.) During this time, insurance companies cannot deny you coverage, and they must offer you the best available rates regardless of your health. You can compare the types of Medigap plans at Medicare.gov.

You also have a guaranteed right to buy most Medigap policies within 63 days of losing certain types of health coverage, including private group health insurance and a Medigap policy or Medicare Advantage plan that ends its coverage. You also have this fresh window if you joined a Medicare Advantage plan when you first became eligible for Medicare and dropped out within the first 12 months.

Most states follow the federal rules, but some, such as New York and Connecticut, allow you to buy a policy any time, says Riccardi. Call your State Health Insurance Assistance Program to learn more.

Outside of one of these federally or state-protected windows, you’ll be able to buy a policy only if you find a company willing to sell you one.And they can charge you a higher premium based on your health status, and you may have to wait six months before the policy will cover pre-existing conditions.

TIME Health Care

Obamacare Support Drops to 37%, Survey Says

U.S. President Barack Obama listens to a question at a news conference at the end of the G20 summit in Brisbane
Jason Reed—Reuters U.S. President Barack Obama listens to a question at a news conference at the end of the G20 summit in Brisbane, Australia on Nov. 16, 2014.

Even as 100,000 people spent the weekend signing up for insurance

Americans’ approval of the Affordable Care Act has fallen to a new low, according to a new poll, even as 100,000 people spent the weekend signing up for health insurance under the program.

A Gallup survey conducted Nov. 6-9, in the days after Republicans won control of Congress in the midterm elections, finds only 37% of Americans approve of President Barack Obama’s signature health care law, for which the second open-enrollment period began on Nov. 15. Lower approval was noted among independents and non-whites, at 33% and 56%, respectively.

Support for the law has been consistently low since November 2013, around the time the first open-enrollment period began. In January, support reached its previous low of 38%. Gallup notes that “approval of the law has remained low throughout the year even as it has had obvious success in reducing the uninsured rate.”

Many Republicans have called for an all-out repeal of the law, which is unlikely, though Obama could still agree to modify parts of it.

MONEY buying a home

7 Tips For Buying a Vacation Home

Beach house
Astronaut Images—Getty Images

You may be tempted to finally buy that vacation place now that the housing market has healed. Here's what to consider before you start house hunting.

Many Americans contemplating a vacation home abandoned that dream when the housing market collapsed. But now that home values have climbed month after month, with the median price up about 20% since its bottom nearly three years ago, you may once again be toying with the idea of that lakefront, ski or beach getaway place. About 13% of homes purchased last year were intended as vacation homes, up from 11% in 2012, according to the National Association of Realtors.

Yet you shouldn’t let the fact that the market has stabilized drive your buying decisions. Instead follow these seven steps to take to make sure a vacation home is right for you, and won’t turn out to be an expensive headache.

1. Choose the Location Carefully

This may sound obvious, but before you start shopping you need to be able to specify why exactly you want this second home. The answer should shape where you look. For example, 87% of vacation home purchasers in 2013 planned to use the property primarily to getaway with their families, according to the NAR. Thus the typical home purchased was an average 180 miles from the buyers’ primary residence.

If the main purpose is for you and your loved ones to gather together and enjoy the house as a family, you’ll need it to be in an area that is easily accessible for everyone, and that offers plenty of activities for different age groups. While you may think jumping on a flight to Florida isn’t a big deal, elderly grandparents or parents of small children may disagree.

Buyers who plan to rent the home to others- as 25% of purchasers do- may want to choose a location with numerous seasons of rental demand, so you aren’t limited to income only, say, three months of the year (likely when you want to use the home too). When you’re viewing the home as an investment property you’ll also care more about projected growth rates of the communities you’re considering, as well as the health of the local economy.

Related: 6 Amenities to Ensure Repeat Business in Your Vacation Rental

2. Rent Before You Purchase

Before you lock yourself in, rent a place (more than once is best) in the area you’re considering to be certain you’ll actually enjoy it. Stay for at least two weeks to make sure you don’t grow bored on extended stays.

Try to visit in different seasons to understand weather and crowd patterns. For example, you may realize that you hate needing to book a dinner reservation well in advance during the summer busy season, when you’re there to relax.

Or if you plan to eventually move to the home full-time, as one-third of buyers do, you may decide a house outside of town is actually too lonely and inconvenient. Only 32% of vacation homes purchased last year were in a small town or rural locale.

You’ll also learn what part of town you prefer. For example, in Orlando vacation homes are spread out throughout the city, but you may prefer the shops and restaurants in Kissimmee over Davenport.

3. Buy Under Your Budget

Don’t fall into the trap of purchasing a property that is a stretch to afford. Buying a house with too high of monthly carrying costs causes stress, and most people go on vacation to getaway from troubles. It also means that if you eventually decide you want to hire someone to manage the place, or care for the yard, there won’t be any wiggle room in your budget to afford it.

Keep in mind that you can always upgrade to a bigger house down the road.

4. Be Realistic About How Often You’ll Use It

My wife and I have three kids. When they were young we bought a vacation home near our house. We used it all the time. As the kids got older, though, we visited the house less and less. Weekend sports games, friends sleeping over, and church and school activities left too little time to get there.

Be realistic when you make assumptions about how often you’ll actually be able to use the place. You may be better off working out a rental agreement with an owner in the area to use his or her place two or three times a year- and forget about the place when you’re not there.

5. Understand the Tax Implications

Don’t assume you know what the tax consequences of owning that property will be, based on your experience with your primary residence. Second homes can be more complicated.

If you are going to rent out the property, you will need to pay income taxes on the rental income you receive. Your property taxes may also run higher than what you pay now, either because the tax rate in the vacation area is higher than where you live, or because its a second home and not a primary residence. For example, the taxes on second homes in Florida are usually much higher than for primary residences.

A qualified real estate agent should be able to provide details about taxes in the area, and possibly even tips on ways to save, such as buying just outside the city limits.

6. Make a Conservative Estimate of Rental Income

Most buyers tend to be overly optimistic about how often they’ll rent out the place. Talk to a local vacation rental agency about how many weeks of the year you can realistically expect demand. For example, even in a winter and summer destination such as Lake Tahoe you can’t expect to fill the place every month of the year.

You also need a realistic estimate of how much expenses will eat into that income. Presume repairs will cost about 1.5% of the value of the house. So for a $100,000 place budget for at least $1500 a year in repairs. Each year the tab might be higher or lower than the estimate, but this rule of thumb will give you some flexibility from year to year.

Similarly, find out ahead of time what your home insurance tab will run, since second homes are often in hurricane or flood areas and thus pricey to insure, and also may cost more simply because they are empty more often.

7. Don’t Get Caught Up in the Moment

If a friend, family member or another investor brings you an opportunity to buy a vacation home, or to acquire land with aspirations of building a grand home, don’t let yourself be easily persuaded. The proposal can sound romantic but quickly turn into a horror story. Sometimes people have alternative motives. Other times they haven’t actually done their homework to uncover that the so-called deal isn’t really a good one.

Related: How to Market Your Vacation Rental to Ensure Maximum Bookings

So slow down, take your time — and do your research. Move forward only after you have thoroughly run the numbers yourself. An opportunity that turns sour will eat up your money- as well as your precious vacation days.

 

More from BiggerPockets:

10 Things Only Personal Finance Nerds Would Understand

5 Tenant Characteristics Its Wise to Discriminate Against

5 Ways to Reduce Booking Cancellations On Your Vacation Home

 

Another version of this article originally appeared on BiggerPockets, the real estate investing social network. © 2014 BiggerPockets Inc.

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