There are a number of ways to save money on insurance rates. This list grows even more when you consider the specific ways to save on various types of insurance (auto, health, home, life, etc). Today, we will take a look at 5 general ways that you can save money on insurance coverage.
1. Shop Around For A Better Rate
It can be very easy to just stick with the same insurance company year after year. Especially if you have not had a bad experience with them! However, you may be costing yourself hundreds of dollars a year by not shopping your insurance rates.
There are various websites that will offer basic price comparisons, or you can even contact your potential insurers and ask for a more specific quote. Just be sure that the quotes are all based on the same variables, so that you can perform a true comparison.
2. Increase Your Deductible
No matter what type of insurance you are dealing with, this is a surefire way to decrease the cost of coverage. The simple reason is because now the insurance company is on the hook for a smaller portion of your losses.
Before you increase your deductible, make sure that you have an emergency fund that is large enough to make up the difference, and cover any out-of-pocket costs that you are now responsible for.
Before you decide to make this change, call up your insurance carrier and find out if it’s worth it.
Most insurers will offer a discount if you choose to have all of your various policies with one company. There is usually a discount for having multiple cars, and then adding your homeowner or renter’s insurance, life, and other types of coverage under one account.
This is for several reasons. The first reason is that they are now making a lot more money off of you, and therefore are willing to offer you a discount in order to entice you to say.
Second, they are saving money by being able to add multiple policies, but only one new customer – they can now send out one communication instead of four!
Another reason for the discounts is the fact that it will be much harder for you to move all of your policies to a new company. Therefore you may not be as willing to put in the necessary work for comparison shopping.
4. Work Directly With The Insurer
Using an insurance agent can help when comparing rates and types of coverage. They can also be helpful when it comes to determining if a particular insurer is right for you. However, all of that comes at a price. The insurance agent will earn a commission for their services, and this is usually added to the cost of the coverage.
Not all companies will sell directly to consumers, but there are some that will. Going this route does not guarantee the lowest rate, but it’s worth a shot to check.
5. Don’t Use It
I know that sounds silly, but the more you use your coverage, the more you risk your premiums rising. If you really think about it, insurance is one of those things that you buy and hope to never have to use. This also goes back to the higher deductibles – this way you won’t have to report smaller claims (just take it out of your emergency fund)!
photo by David Hilowitz
- What have you done to save money on insurance?
- How often do you compare rates?