Take advantage of insurance discounts
One of the easiest ways to reduce the costs of your insurance is to take advantage of the various discounts offered by insurance companies. Too many people do not even check to see if they qualify for discounts, and thus spend hundreds of dollars a year needlessly.
While the amount you will save will vary from policy to policy and is dependant on where you live, what cars you drive, the state of your health, etc. insurance analysts state that by using discounts you save on average about 25% on insurance premiums.
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Car insurance:
This is the easiest insurance to find discounts with as there are discounts for just about everything. Installing a car alarm can save you 25%. Getting good grades in school can save you 10%. Insuring multiple cars with the same provider can save you 10%. Taking a defensive driving class can save you 10%. If you have a child away at college, you could cut your premium down. If you have been licensed over 20 years your premium could go down. If you are a member of the military, a veteran, etc. you can get discounts. Ask your car insurance provider for a list of the discounts they offer, and scan it to see if you qualify for any of them.
Homeowner's insurance:
This is the next easiest place to find discounts. You can save money by combining policies, meaning insuring with the same company that insurers your vehicle. You can get discounts for installing safety rails in the house, getting rid of a pet, replacing an old furnace, adding storm shutters, going green, installing a security system etc. In many cases you can save as much as 25% by taking a few safety measures and asking for the discounts.
Health insurance:
There are really no discounts for health insurance, however, in some cases you can get rebates or incentives for proving good health, following a wellness program, etc.
One of the most effective ways to get discounts on insurance is to not be insured individually, but to be part of a group policy. This is especially true of health insurance, but can be effective in other forms of insurance as well, including life.
So, ask your insurance provider what discounts they offer and what you can do to qualify for discounts to greatly reduce your monthly premium amount and save money for your cash reserve.
