Having adequate insurance coverage in place is a very important part of overall financial health. While most people are aware that they need to have quality home, auto, life, medical, and other insurance policies in place to ensure they are properly covered, the cost of all of these insurance policies can seem too expensive at times. Fortunately, there are a variety of tips and hacks that can be followed to help anyone save money on insurance.
Shop Around
Ultimately, the best way that you can save money on insurance is by shopping around. Today there are dozens of different insurance companies that will be able to provide you with quality insurance coverage and not all insurance companies think the same way. While one insurance company may view you as a major insurance risk, another may not consider your situation to be risky at all. Furthermore, some insurance companies may be running promotions to offer better deals. If you are willing to spend time shopping around for the best policy, you could end up getting a great deal.
Get Right Level of Coverage
When it comes to getting insurance coverage, it is very important to ensure that you get the right level of coverage or your situation. While you will want to make sure that you get enough coverage to provide you with comfort, there is usually no need to over-insure. If you end up spending more on insurance than you need to provide you with the right level of coverage, you are ultimately throwing money away.
Combine Policies
All major insurance companies that offer more than one produce line will offer discounts to customers that get all of their insurance policies in place with the same company. Insurance companies are able to offer these discounts in an effort to win more business, provide good service, and also to spread risk across multiple policies. For example, if you have an auto insurance policy in place with one insurance company, you could also get a cheap renters insurance policy if you open that policy with the same company.
Higher Deductible
If you are looking to save money on your monthly insurance premiums, another option would be to accept a higher deductible. A deductible is the amount of money that you will have to pay out of pocket every time you make a claim. For example, if you have a $500 deductible on your auto insurance policy, you will need to spend $500 out of pocket before you receive coverage for damage to your vehicle. If you have the money saved to cover a higher deductible, it would make sense to choose to have a higher deductible in order to save on your monthly payments.
Don’t Finance
Many insurance companies will write policies that last up to one year. In order to win customers, they will offer customers the ability to pay for the whole policy in advance or in monthly installments. When you make payments in monthly installments, you be able to avoid paying the larger one-time purchase. However, your monthly payments will be higher and you could end up spending up to 10% more on your total costs. Ultimately, paying for the policy up front could save you hundreds of dollars per year.
Consider Your Options
When you are looking for insurance, you should also carefully consider all of your insurance options available to you. This is especially true with health insurance where you may be able to choose between HMOs, PPOs, and other types of insurance. While some plans may be perceived to be better, they do cost a lot more and you likely will not get the benefit out of them. Because of this, you should always weigh the pros and cons before making an insurance choice.
Being well insured is important, but it does not have to be expensive. Following these hacks and tips could help you save a lot of money while still having the right level of coverage.
