You need to have insurance for your home, your car, your health—you name it. It can feel like the journey to cover all of your potential liabilities is endless.

But there are some people who want to take on the responsibility of covering their own liability risks in exchange for lower premiums. It’s called self-insurance, and it’s an option for individuals who have a lot of cash saved up and have minimal risk to their assets.

In some states, a person can become self-insured for auto liability by making a cash deposit in a special savings account or getting a surety bond that meets minimum requirements. Generally, a person who wants to be self-insured must have more than 25 cars or more than $50,000 in assets (the exact amount varies from state to state). Then they must prove to the government that they can pay for claims up to the maximum limits that would normally be covered by an auto insurance policy.

This type of arrangement is also possible for other types of insurance. Depending on state regulations, an individual may be able to get a certificate of self-insurance for homeowners’ or renters’ insurance, for example. The main advantage of self-insurance is that you’ll save on your premiums, but you’ll be responsible for paying the full cost of any damages you cause.

It is important to note that many of the ACA’s employer mandates and other health care laws only apply to fully-insured plans, not self-insured ones. In addition, there is often a requirement that the insured health plan offer a level of coverage that is actuarially sound. Минимални осигуровки самоосигуряващо се лице