Reducing insurance costs: Feature Article
Insurance is a necessary part of life, and most people, when they use it, are grateful they have it. However, when times are tough, and money is tight, it can be hard not think of insurance as a waste of money. This is especially difficult if you are having a hard time making bills. Because insurance is something that is worth keeping, even if it doesn't seem like it, let's look at some ways to reduce the cost of insurance but keep your coverage. The following are some tips for reducing insurance costs without sacrificing coverage:
General tips for insurance cost reduction, no matter the insurance type:
First, improve your credit: Insurance companies do consider your credit when setting policy premiums. So, make sure you have good credit, and chances are you will get better premiums. If your credit is poor, and you work to improve it, ask your insurance company to re-evaluate your premiums.
Next, make sure you have a decent insurance history. If your insurance history shows a lot of claims being made, and you costing the insurance company too much money, you will pay more for coverage.
Shop around. If you want to reduce insurance costs you can't always just go with the first person who tries to sell you an insurance package. You need to comparison shop and do your best to find the company that will give you the lowest rates on the best policies.
Combine policies. You can usually save money by using the same insurance provider for all of your insurance needs. The more policies you have with the same company, the better the chance you have of getting reduced rates.
Ask for discounts. A lot of insurance companies offer reductions in insurance rates, but only if you ask for them. In some cases you need to know what questions to ask, in other cases just asking if there are any sort of discounts offered will do the trick. For example, if you are a veteran you might get a discount. If you have good grades at school, or if you go certain amounts of time without making a claim, etc. you can get discounts.
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Car Insurance
Car insurance cost reduction tips: While many of the above tips can help you save money on car insurance, the following tips are specific to saving money when insuring your vehicle. The fact is that the rates are high, but it is not impossible to minimize or lessen them.
Helpful Resources: Reduce Cost of Insurance for Vehicles Reducing Insurance Premiums Auto Insurance Reducing Car Insurance Premiums Reduce the Cost of Insurance Paying Less For Home Owner's Insurance Dog Owners Reducing Insurance 12 Tips to Reduce Insurance Costs
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Insure multiple cars or multiple drivers: the fact is that if you were to try and insure one car, you might end up getting a higher rate quote then you insure multiple cars or drivers. So, ask for a quote on your car, then ask if you get a discount if you insure more than one car with the same provider. If they say no, look elsewhere. Most insurance companies will offer bulk rates because they want your business. Also, if they know you will be adding more drivers or cars soon, they may be willing to give you a bigger discount in order to insure future business from you. Obviously there are some restrictions on this. For example, you can't get together with all of your friends and try to put all of your cars on one policy. Usually to qualify for reduced rates you have to live at the same residence, or be related by blood or marriage, or at least jointly own a vehicle. For example, if you live with a significant other you could get your car insured together by showing proof of joint ownership.
While mentioned previously, if you insure multiple kinds of policies with the same firm, such as car, house, motorcycle, and life insurance you could get multiple policy discounts, whether you have one extra policy or multiple extra policies with the same firm.
Keep your nose clean: If you want to reduce your insurance rates for your vehicle, then do not speed, do not get in accidents, and avoid other violations, as they can mean increased insurance premiums. You basically get points for moving violations, the fewer the points the lower the premium rate, the more points, the more you pay.
Take a defensive driving course: Talk to your insurance provider first, but in some cases you can get discounts from insurance companies if you complete an approved defensive driving course. If you learn how to drive defensively you are supposedly less of a risk, and thus you can pay less. Also, in some cases you can reduce the number of points you have against you by taking such classes. You can take defensive driving classes, accident prevention classes, or other classes to help you be a better driver. Make sure your car insurance provider accepts the class before you take it, and make sure you take an accredited class so that it counts.
Shop around: okay this is a repeat of a previous suggestion, but the fact is if you renew insurance and find that your policy premium jumps, it might be a good time to shop around. If you let your insurance company know you are looking at and obtaining quotes from competing companies they may be willing to give you a better discount, or leave your premiums alone. No matter what happens to your premium costs, every two years or so you should check rates to ensure you are not paying too much. Just remember when you are shopping around to not just compare costs but also coverage. Of course a policy that covers less will cost you less. Also make sure that insurance provider has a good history of paying claims. Some insurer's are basically practicing fraud, so check into that before you choose a company.
Life Insurance
Life insurance cost reduction tips: Life insurance can really feel like an unnecessary insurance when your budget is tight, but it is worth keeping if you can make ends meet. However, it is important to find ways to make your rates less so that you can keep your insurance when times are tough. Canceling life insurance policies is never a good idea because it means previous premiums were wasted.
Go with term. You have two options when it comes to life insurance, whole or term. Term life insurance is far less expensive, and when times are tight, every penny counts. You can get the same amount of coverage for less premium if you get term life insurance.
Quit smoking. One of the best ways to get your insurance costs reduced is to be healthier, and one of the best ways to do that is to quit smoking. Smokers are a higher risk, and thus pay higher rates, and so life insurance providers offers discounts to non-smokers. Become a non-smoker, get a discount.
Get healthy. Many life insurance companies will run blood tests to see how basically healthy you are, and will use their findings to determine if you get preferred coverage or not. Preferred coverage means you pay less for the same policy because you are healthier than the average person, and thus a better candidate.
Be at a healthy weight. Your weight plays a factor in how much you pay for your premium in life insurance. If you are severely overweight or underweight you will not get as good of a price on your premium. So, make sure you are at a healthy weight when you sign up for life insurance.
Shop around. There is a big difference in life insurance providers. Sometimes you get a better price, but the provider is not as well known or as reputable. Many times the reputation of the life insurance company is what you are paying for. However, in some cases it is worth it because if you need to make a claim you can count on them for paying out.
Homeowners insurance
Home owner's insurance cost reduction tips: Insuring your home is critical. For most people, the home is the biggest investment you ever make. So, if you want to protect that investment you won't skimp on insurance for it. However, when times are tight and finances are low, it can be tempting to just hope nothing happens to your house. However, rather than risk it, look for ways to reduce your costs. Here are some great tips.
Make repairs and changes to make your home less of a risk to insure. The price of your premium can be dependent on things like the age of your home, and the state of repair it is in. Talk to your insurance provider and ask for a list of upgrades or changes you can make to reduce the insurance cost. In many cases something simple like cutting down a tree that is dropping leaves on your roof can save you 50% in premiums over the course of the year.
Combine policies. Again, if you can, get your homeowners insurance at the same place you get your car insurance. Combining policies can mean a 10-20% discount.
Set higher deductibles. With all insurance the higher the deductible the lower you pay for premiums typically, this is especially true of homeowners insurance, as you are less likely to make a claim.
Do not over-insure. The fact is you do not need extra coverage, and when times are tight and finances are low, it is best to ensure you have the right amount of coverage.
Do not have a dog. Dogs increase liability and thus premiums, so if you want to reduce your homeowners insurance costs, get rid of your dog.
