No matter how you put it, monthly insurance payments can truly eat up a sizable portion of your monthly budget. There’s the health insurance, the car payments, the rent… and the list goes on. Naturally, you’re going to want to be on the lookout for ways to soothe the financial hit, so here are a couple of suggestions:
- Do plenty of price comparisons
It’s easy to assume that prices are going to be the same no matter where you look, but this simply isn’t the case. In fact, it’s easy to get an insurance quote, and all it really takes to get one is to fill out a simple form, and that’s it! You can click here to see an example of this, but if you don’t quite feel like visiting each insurance provider’s website directly, you can also use one of the many comparison engines that can be found all around the web.
- Maintain a good credit score
Maintaining a good credit score is a good way towards reducing your insurance costs. Since those with a high credit score are viewed as more reliable and trustworthy when it comes to making their payments on time, they are often rewarded with lower insurance costs. If you want to know the current state of it, there are many services you can use to see where you stand. But generally speaking, if you’re responsible with your finances, don’t spend more than you earn, and rarely (if ever) miss a payment, your credit score should be pretty stellar.
- See if you qualify for lower health insurance rates for young adults
It’s no secret that younger people are a bit less of a liability when it comes to health insurance. As a result, they’re often offered more affordable insurance packages. So what constitutes a young adult? In the US, this applies to anyone aged 26 and under. Keep in mind this is true for the individuals market – when it comes to employee health insurance, every employee, no matter what their health status, receives the same treatment.
- Don’t get more coverage than you actually need
While getting lured by unlimited protection is quite easy, the fact of the matter is that you shouldn’t do it, unless you really need it. To illustrate an example, luxury cars are worth more than cheaper cars (or those purchased in the second-hand market). Obviously, since they’re worthless, you won’t need as much coverage for them in general. Of course, this is only a part of the equation – you should always assess the risks you’re facing on a daily basis and factor in all the potential repair costs you could be facing later on down the road.
- Take advantage of multiple policy discounts
Sometimes, when you purchase multiple types of insurance from the same provider, you’ll be offered a discount. In case you need both at the same time anyway, it’s a great deal that allows you to save a bit of money in the process. Still, don’t make the assumption that things are going to be cheaper just because you’ve been offered a multiple policy discount. Always research what the other providers are offering you and make all the calculations needed to determine what the best deal is.
- Keep your insurance company in the know
Have you made any home improvement upgrades recently? Perhaps you’ve installed new windows or doors? Maybe you’ve made your house safer by installing a new alarm or security system? There’s no harm in letting your insurance company know all about it. If it’s relevant, chances are you’ll be offered a discount!
- Pay an annual lump sum
Paying on a monthly basis means that, in the grand scheme of things, you’ll likely be paying more. By paying an annual lump sum, it’s possible to save quite a bit of money. While the difference may seem minuscule upon the first glance, you wouldn’t believe how much of a difference this can make in the long run.
- Be a competent driver
When looking to save money on auto insurance deals, insurance companies tend to favor the more experienced drivers and those with the least amount of traffic violations and accidents. Understandably, these types of drivers are much less of a risk, so they’re often rewarded with better insurance rates and discounts. If you’re willing to take a defensive driving course, chances are you’ll be offered an even greater discount.
- Mention that your occupation is low-risk
If you want to save money on car insurance, mention that your occupation is low-risk in nature. Simply put, low-risk employees are less likely to get involved in an accident, thus, the insurer can offer a better deal to them. Not sure which professions qualify? This probably depends on the insurer, but in general, doctors, lawyers, real-estate agents, and architects are considered to be high-risk. On the other hand, if you’re a pilot, scientist, teacher, artist, or a nurse, the low-risk premium may apply. In case you’re wondering why this is so, the DMV’s explanation states that this kind of job requires a detail-oriented personality type, which is also the kind of personality that is considered less likely to have an accident.
- Don’t renew your insurance without doing your due diligence
Even though your insurer might offer you a discount for keeping you on board for another year, this doesn’t guarantee that you’ll be getting the best value for your money. Instead, it’s a much better idea to see what the competition can offer you before eagerly deciding to stay with the same provider. Thankfully, due to the emergence of various comparison engines, finding the best deal online is practically effortless.
With the help of these 10 tips, saving money on various types of insurance should be substantially easier. Of course, since every insurer is different, the exact strategy to bring the costs down may require some additional research on your part. But in general, you should now have more than plenty of ideas where to look for an opportunity, which is bound to present itself sooner or later.
Like Us? Sign Up!
Subscribe to get the latest budget buzz via email.