Here’s How To Save On Insurance

Insurances

Have I mentioned I don’t really like insurance, that is until I use it of course. I know I am not the only one. However there is one thing that we can all agree we like, and that is saving money on insurance.

I find that the beginning of the year is a great time to do an inventory of your insurance, because there could be a lot that has changed in the last year that is worth revisiting.

Things change
Think about life insurance. Have you recently paid off your house or paid off a school loan? Well you may not need as much insurance now that those assets are free and clear.

Don’t forget about auto insurance. Now that your car is one year older is it still worth the same amount of insurance you have on it?

Or perhaps you have saved up a larger emergency fund, thus allowing you to possibly increase your deductible.

I know those are moves that could put money back into your pocket, but what about the other way around.

What about disability insurance? Is your coverage updated with this years new salary, you know that big raise you got?

Did you have a baby? Did you purchase a house? These are things that should be considered when you get life insurance. (Which you may want to get in those instances)

Or maybe you are thinking of getting a new car. How much will that cost in insurance? Just one more thing to think about before you purchase it right?

Those are all examples of why you may want to change your insurance, but how do you really save on insurance?

Increase your deductible
By doing so you will lower your premiums, just make sure you have enough socked away in your emergency fund to pay the deductible if insurance is needed. Most companies or agents have ways to see differences in monthly premiums by comparing deductible increases or decreases. For example, Progressive has a side by side comparison tool you can use before you even increase or decrease your coverage.

Stop paying interest
Pay your insurance premium once a year to keep from paying interest to the insurance company. To make sure you have the money for next year’s payment, save the annual amount divided by 12 so that you are then really paying monthly. Most companies show you their rates in annual payments that’s why the monthly premium is usually higher, they charge interest. Of course right? Think about the next time they ask you if you want to pay monthly or annually.

Use an independent agent
That’s right I can find you the best rate while also working with great companies. Just because you don’t see insurance companies on TV everyday doesn’t mean they don’t exist! This is probably my favorite because it is the true cost savings that you can see. Instead of paying money for advertisements these companies may have lower premiums for policyholders, which is good news for consumers. If you are looking for potential cost savings, let me shop around for you and see what rates are out there, you may be surprised!

Verify coverage
Especially with new insurance make sure everything is in place, mostly around health insurance before you run off to the Doctor. Sometimes payment and administration take longer than we think. It’s good practice to call before you have any procedures done. Don’t just let the nurse do it, make sure you call yourself to know exactly what is and what isn’t covered.

Of course, everyone’s situation is different. If you do or don’t do any of these things, it’s still a great time to review your coverage.

Have you reviewed your insurance this year?

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