Get the right coverage, save money
One of the best ways to reduce the cost of your insurance is to eliminate any unnecessary coverage that you may have. Too many people allow their insurance agents to put together their plans, and never bother to read the plan to see what it is exactly that they are paying for. Reviewing your policies, and making sure that you are not double covered, or that you are not paying for services that would be of little benefit to you is a great way to save.
The following is a look at some examples of how you can save by getting the right amount of coverage.
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Car insurance:
Many insurance salesmen will tell you that things are "included", "required" either by law of the insurance company, etc. in order to get yo to pay for coverages you do not need. Be sure to review your policy closely, and be sure that you understand what everything is before you start paying for it. For example, if you have Allstate car insurance, you can add a roadside assistance plan to your coverage for about $15 a month. This means if you ever run out of gas, lock your keys in your car, have a flat, or break down, they will be there to help you, usually within the hour. This is a great service, and it could be very beneficial to you, however, if you already have a Triple A roadside service plan (which costs about $30 a year in most cases), you do not need to pay the additional amount on your insurance. Yes, it may offer some extra benefits outside what another roadside assistance or motor club could offer, but not something that justifies the additional $100 or more a year. Get rid of the fluffy extras you do not need, and you rid yourself of an expense allowing you to save more.
Health insurance:
Most of the time when it comes to health insurance you can't over insure yourself too much, but there are times when you do not need some coverage that you could be paying extra on. If you are married to a dentist, for example, then having dental included with your health plan for "an additional $15" would not make sense. Obviously most people would catch that, however, there are things less obvious. For example, in many family health care plans maternity coverage is included. However, if you were to get a family health care plan without it you could be saving a ton of money. If you can't get pregnant, for whatever reason (i.e. because you are on some form of prevention, your age, your medical condition, etc.), then do not pay for the insurance to cover maternity.
There are many other examples of spending money that you do not need to spend because your coverage is not right, and not what you need. So, take time to review your insurance plans, and each time you have a change in your life, make sure you review your plans to ensure you are still covered properly, and not over-insured.
