General Tips for Saving on Insurance
No matter what type of general insurance you need to purchase there are some key ways you can save money on those purchases. Below are some tips that can help you keep your premiums low on any type of coverage.
Raise Deductible
With any type of general insurance, except life insurance, you can lower your premiums simply by increasing your deductible. The more you are willing to pay out-of-pocket the less risk the insurance company feels they are taking with you so they are going to reduce your costs. However, you have to be careful when opting to increase your deductible. While going up to $500, $1000, or more might help you save money now, if you can’t afford to pay that amount when necessary, you might as well not have had the coverage to begin with. So find a balance between affordable premiums and a reasonable deductable.
Only Buy Needed Coverage
One way to cut down on your costs is to not give in to high pressure sales techniques from agents and only buy the coverage you need. Decide before you start calling around or getting online quotes what amounts of coverage are needed to protect you, regardless of what type of general insurance you are looking at. For example, if you have an older car, you might want to skip the collision and comprehensive coverage. If you’re a man, look for policies that do not include pregnancy benefits unless you’re getting a family policy.
Shop Around
The Internet has definitely made finding a good deal on general insurance costs much easier thanks to the ease of comparison shopping. Not only do insurance brokers provide multiple quotes from different companies but you can easily get quotes from all of the major insurance providers without lifting the phone or leaving your home. Make sure you do get multiple quotes because this is best way for you to find out where you’ll be able to save the most on your premiums without sacrificing the coverage you need.
Single Company for Your Policies
Did you know that most insurance companies actually handle a wide range of insurance products? It’s true. Most of the companies will be able to sell you any type of general insurance policy you need, including homeowners, auto, and life. Some even offer health insurance. By combining your policies and having them all provided through one company, you’ll be likely to save a lot of money on your premiums thanks to discounts these companies offer. Plus, you’ll save yourself time by having one bill to pay instead of three or four.
Look for Discounts
Don’t just assume the insurance company is going to quote you the best deal possible. Instead, be proactive and look for discounts that can help you lower your premiums. For example, if you have a security system in your car or in your home, that should qualify you for discounts in your coverage. If you belong to certain groups or organizations, you may be able to lower your costs even more.
File Fewer Claims
While it won’t help much for life insurance, keeping the number of claims you file against any general insurance policy is going to lower your premiums. That means you should always be a safe driver and avoid accidents, as well as moving violations. If you have homeowners insurance, make sure to minimize your liability risks by placing a fence around your pool, by training your dog, and by having adult supervision when anyone is at your home. You might also consider covering small repairs yourself without making a claim. With health insurance, the best way to limit your claims is by taking care of yourself and going for annual exams.
Pay Annually
Most general insurance policy premiums can be paid in different ways. Choosing an annual payment will save you money. That’s because most insurance companies do charge a service fee if you make quarterly or monthly payments since this increases the risk that you won’t pay. Some insurance companies don’t charge these fees but do give you a discount if you pay your entire premium in one lump sum. While that might seem too expensive of a bill to pay at once, you could always put back the amount of the monthly premiums into a savings account each month then you’d have the full amount to pay that yearly premium.
Review Policies Periodically
One of the true things about general insurance is that things change rapidly. New products are introduced. Prices are lowered because of economic factors. Your situation changes: your family expands, your car is replaced, etc. For all these reasons, it’s a good idea to regularly review the insurance policies you have. And you should go beyond just making sure you have the right amount of coverage. Every year, you should consider switching companies. Get quotes on the coverage you need and see if you could be getting a better deal somewhere else. Even if you’re happy with your current agent, you should do this because you may be able to use those other quotes to negotiate a lower premium with them, too. Most insurance companies aren’t too keen on losing their customers.
The bottom line is that general insurance is one of the more expensive costs you’ll be paying in life but there are solid ways to lower your premiums and save money without sacrificing coverage or peace of mind.
March 16, 2009, Posted by Rainy Day Mitch