When money is tight, the natural thing to do is cut corners. While this may not hurt anything if you’re considering cutting back on eating at restaurants or not taking a vacation, there are some things too important to cut corners on. Having enough insurance coverage is one of them. However, there are a few ways you can reduce the amount of money you spend on insurance without endangering your family. Following are a few tips on how to save on insurance.
Types of Insurance
The term insurance poor is uttered by many people for good reason; there are a lot of different types of insurance that most people need. Carrying automobile insurance is necessary if you own a car. Life insurance is important because your family needs to be assured of their financial survival in the event the head-of-household meets an untimely demise. Health insurance is needed for the same general reason–if the financial provider is injured or becomes ill and can’t bring money in, the family will need money to survive until they can. Home insurance is necessary because the family needs somewhere to live. If you own a business it needs to be protected against financial disasters. If you travel for business or pleasure you need financial protection, too. All of these types of insurance cost money, and there are ways to save in each category. Most insurance companies nowadays offer significant savings on bundle packages. Check with your insurance carrier for details.
There are actually quite a few ways to save on auto insurance premiums. Among them are raising your deductible. This is a tried-and-true method of saving on insurance costs. As your deductible goes up, your rates come down. Another way is to decrease the number of miles you travel. Low mileage discounts are available through most insurance agencies. Discounts are also available for having a theft-deterrent system, air bags, or any number of other safety equipment upgrades. If you have more than one vehicle you may be eligible for a multi-vehicle discount.
Carrying enough life insurance to make sure your family is provided for if you die is one of the most important types of insurance to carry. This is one area you shouldn’t cut corners on. One of the best ways to save money on life insurance is to shop around for the best rates. The company you’re currently with may not offer the best package. Another way you can be assured of getting a good rate on life insurance is to get healthy and stay that way. That means eating right and getting enough exercise. If you smoke, quit. Your insurance premiums will go down. Try and find a company that will give you a guaranteed rate. With this type of policy you will have to pay more as you age, but deteriorating health won’t affect the price you pay.
In many ways health insurance is similar to life insurance. It is vital to carry sufficient coverage, but there are ways to save while doing so. One surefire way is to carry a higher deductible, which always lowers your premiums, but remember there will be more out-of-pocket cost if you become ill or are injured and unable to work. Taking on higher co-pays can also save on insurance costs, but again, there will be out-of-pocket costs involved. Many people are able to save on health insurance costs by becoming part of a health plan through their place of employment. As with life insurance, you can save money on health insurance by getting healthy and staying that way.
One of the best ways to save money on home insurance is to increase your credit score. A lot of insurance companies tend to charge more for policies taken out by people with bad credit, so it’s to your advantage to boost yours. You can also save money on premiums by upgrading the safety of your home with a burglar alarm system or installing deadbolt locks on doors and windows. Another method of saving on home insurance premiums is to ‘storm proof’ your home with a new roof and shutters for the windows. You can also lower your insurance payments by putting in solar lights along walkways, which will lessen the chance of someone getting hurt on your property after dark.
One way to save money on business insurance costs is to shop around for a better deal. Insurance companies are very competitive, and you may be able to find one that will beat the price you’re currently paying for similar coverage. By establishing a safe work environment, and encouraging safe work habits, you will be able to save money on business insurance premiums. Lowering your insurance payments by raising your deductibles is also a consideration. Just make sure you have enough cash on hand to handle the out-of-pocket expense should the need arise.
The single best way to save money on travel insurance is to take the time and shop for the best price. Because most people tend to rush through the purchase of travel insurance they don’t pay as close attention to the details as when they buy other types of insurance, such as home, life or health. The main reason for that is because travel insurance isn’t a full-time necessity. Instead you are only affected for a short period of time, so you may be tempted to take the first offer that comes along just to get it done. Take your time and shop around. There are deals out there; all you have to do is look for them.
Guest post from Andy Granger. Andy writes business insurance reviews for BusinessInsurance.org.