Clever Ways to Save Money on Insurance
Reduce Home Owners, Term Life and Auto Insurance Costs
It is possible to have good insurance coverage without paying a fortune for it.
The price of insurance can vary by hundreds depending on the insurance company and type of policy. A lot of policyholders are not even aware that they may be paying for unnecessary extras. Take the time to see how to reduce insurance costs.
Saving Money on Life Insurance
Term life insurance is the cheapest, no-frills form of insurance. The insured is covered for a certain amount of time as stipulated in the contract (10, 15 years and so on). Usually the premiums are increased each year, the insured paying more the older her or she gets.
Keep costs down by opting for a decreasing term insurance policy. For example, if the insured has taken out a policy to cover outstanding mortgage costs, after 15 years a portion of the outstanding debt will be paid and if that is the purpose of the insurance policy, only keep enough insurance in place to cover what remains of the outstanding debt.
Shop around for the best deal on line on a regular basis. There is a great deal of competition around and it is possible to get a better quote through a comparison website. Remember though, that cheaper is not always best- make sure the quotes come from a reputable company and that the contract is carefully scrutinized before signing.
It may be worth factoring in the costs of involving an accredited insurance broker. He or she will look at the total financial picture, determine future needs and may well save money into the bargain by shopping around on behalf of a client. Buying directly from the insurance company, however, will cut costs further.
Costs drop dramatically for non-smokers. If the insured stops smoking for a year, premiums will cost much less.
If the insured has no dependents, consider getting rid of term insurance altogether. It may be unnecessary and may save a lot of money each year.
Pay premiums semi-annually or annually to reduce costs and buy one big policy rather than several small insurance policies since there is usually a fee for each individual policy.
Saving Money on Auto Insurance
Increase the excess (deductible) on the car to lower premiums. This is the amount that the insured will pay in the event of a claim.
Get rid of unnecessary add-ons, such as vehicle hire in the event of an accident or towing insurance. These can really hike up the cost of insurance, but the insured needs to think carefully about individual circumstances.
Take advantage of discounts such as no-claims bonuses, over 50-year olds discounts and teacher’s discounts that certain providers offer.
Combining home owner’s insurance with auto insurance may mean discounts of up to 10%.
Reducing Home Owner’s Insurance
Improve home security to potentially save 5% on premiums. Installing specialized locks and bolts, burglar bars or alarms and smoke detectors may qualify the insured for such a discount. It is best to find out exactly what the insurer recommends and how much would be saved on premiums before spending on such devices.
Some insurers will reward long-term policy holders with discounts, by as much as 10% if they have loyally remained with the insurer for 6 years or more. However, it is a good idea to periodically compare prices with other lenders.
Disaster-proof the house by modernizing heating, plumbing and electrical systems, especially if the house is old. Once again, find out what the insurer recommends and how much would be saved on premiums versus outlay on potentially expensive upgrades.