5 Effective Ways to Save Money on Insurance
Insurance can be expensive, yet it’s something people have to deal with one way or another. Most people start with auto insurance, but they move on to things like life insurance, health insurance, or home insurance. The following are five things you can do to reduce your insurance costs.
1. Bundle Policies
One thing you can do is bundle insurance policies. This works if you have several insurances with different companies. Sometimes, one company can take care of all of your insurance needs. Usually, the company is willing to offer a decent discount, so this should work out in your favor. Make sure you’re getting the same coverage when you make the switch because that could change.
2. Online Comparison
The internet can help you reduce your insurance costs, too. For example, you can look at online health insurance quotes to compare prices. Jot down these quotes and gather up more until you find the ones that offer the best price and coverage. If you’re going to be bundling, you can do this as well except you’ll be looking for a good bundled quote instead of individual ones. This may take some time and require a little work, but it’s time well spent after you see how much you’ll be saving.
3. Higher Deductibles
If you tell the insurance company you’re working with that you’re willing to pay a higher deductible, you’ll be able to get a discount. Now, this can sound a little scary, especially if you don’t have a lot of money in reserve. Talk to your insurance company and find out how high your deductible needs to be to qualify for a discount. Make sure you have that money saved before you tell your insurance company to activate this discount. Don’t touch that money though. If something does happen, you’ll need to produce that cash before the insurance company pays for anything.
4. Find the Discounts
Each insurance company offers discounts you can enjoy, but you have to know about them. For example, some car insurance companies are willing to offer a discount if you take a defensive driving class to make you a safer driver. If you decide to install a good home security system, a home insurance company might offer you a discount. A life insurance company could give you a discount if you work for a particular company or are a member of some club like an alumni association or maybe a business organization. Find out how to save more money with these memberships.
Do you use FitBit or Apple Watches? If so, did you know your activity levels can lead to discounts on health, life, and disability insurance products? Chris Riley with Diabetes 365 explains: “Over time, insurance companies have begun to reward consumers who live an active lifestyle. Most of us walk, run, work out, ride a bike, do yoga or other basic exercises. If you log this information and are willing to provide it to insurance providers, you can qualify for discounts ranging from 6% to 15% annually. As an example, life insurance for diabetics will always come with higher premiums. Showing an underwriter how active you are can help offset some of these higher prices and lead to savings of thousands of dollars over the life of the policy.”
5. Pay in Full
Most insurance companies offer a significant discount for folks who pay in full, but you have to find out. When you pay monthly, you can break up payments, but you’re also paying additional fees you can’t escape. You’re going to have to confirm that your insurance company is willing to offer a good discount if you pay for your insurance policy in full. Usually, you pay every six months, but there are times when you can pay for a year of coverage.
As you can see, there are ways to cut insurance costs a bit. Talk to your insurance company representative, and see if the professional has any additional suggestions to help you save even more.
