We all need insurance of some kind. Whether we purchase automobile, homeowners, health, or life insurance, one thing is for certain – there are the premiums we must pay. Fortunately, there are a few strategies we can use to reduce how much money we spend for coverage.
We’ve compiled the nine top ways to save on your premiums below:
- Shop Around: This one may seem obvious; and it is. Nearly 70 per cent of auto owners shop their policy at renewal every year. But don’t stop with shopping just your automobile policy. Most insurance premiums can benefit from a little competition.
- Go Direct: Brokers can do the shopping for you, but it may be worthwhile to go direct to insurance companies who do not utilize the services of an agent or broker. Sometimes the elimination of the middleman will result in some savings.
- Increase Deductibles: If your savings account can cover it, consider increasing the deductibles on insurance policies. This is only recommended if you can afford higher out-of-pocket expenses in the event you have a claim, as the alternative may require taking on unwanted debt.
- Avoid Claims: Becoming a safe driver, enjoying a healthy lifestyle, and avoiding household mishaps will keep premiums from increasing from filing a claim. Over time, claim-free policies may also be rewarded with discounts.
- Ask for Discounts: Some discounts are automatic, such as your age or a claim-free record. Others aren’t, like being a homeowner or good student. Ask your agent if you are receiving all available discounts – and ask the question every year at renewal.
- Pay Less Often: The sooner an insurance company receives their premium, the sooner the money can be deposited into their investment account. Some insurers will provide a discount if you pay less often than monthly.
- Pay Automatically: Automatically having insurance premiums paid through your bank also can net you a nice discount. After all, you’ll be saving the insurance company time and money by not having to mail you an invoice periodically.
- Become a Long Term Customer: Loyalty can pay in the form of lower premiums. In almost every business, acquiring a new customer is much more expensive than retaining a current one. And some insurers acknowledge that by offering a loyalty discount.
- Review Annually: Your needs may change. Review your policies each year to remove any unnecessary coverages. If you have less to insure, your premiums should decrease accordingly.
There you have it. Nine tried and true ways to reduce how much you spend on insurance without sacrificing coverage. A win-win scenario to protect the things, and people, most important in your life.