Last Updated on 02/03/2022 by Deepak Singla
Insurance is a necessary expense, but it can be quite costly. The cost of insurance is continually rising, too. Thankfully, there are steps you can take to keep your insurance costs affordable. If you want to save a pretty penny each year on your insurance premiums, follow these tips!
1. Increase Your Deductible
Probably the quickest way to lower the cost of your insurance is to up the deductible.
For those who are unaware, the deductible is the amount of money that you need to pay for a claim before the insurance kicks in. For example, if you have a deductible of $200, then you’d need to pay $200 to meet the bill in question before the insurance company gives you any money.
If you increase your deductible, then you will be paying less for your insurance. This is because you will be paying a greater proportion of the claim. However, it’s important that you go for a deductible that you know you can afford should the worst come to the worst.
2. Remove Unneeded Insurance Add-Ons
When you’re evaluating an insurance policy, it’s essential for you to completely identify and fully understand what’s included in the policy. You may be surprised to find that some of the inclusions of the policy are things you don’t need.
While we wouldn’t suggest that you haphazardly remove elements from your insurance just for the sake of cost-cutting, it’s always wise to check and assess what is included.
A good example here is travel insurance. Some travel insurance policies will include vehicle rental insurance as standard. But if you’re not renting a vehicle, why would you even need it on your policy? Of course, you wouldn’t want to remove things like flight cancellation and loss of baggage insurance from your policy (as tempting as it may be). But if there are add-ons you’re sure you won’t need, talk to your provider so you can customize your policy and reduce unnecessary expenses.
3. Do not insure everything on your home insurance
This applies specifically to home insurance. When you take out a home insurance policy, it may be tempting to insure every item in your home. The problem is, this can be incredibly expensive.
We recommend that you limit insurance to valuables and other essential items. This includes expensive electronics, jewelry, valuable art, and anything that you really wouldn’t be able to easily afford if it got lost.
4. Buy Different Insurance Policies from the Same Provider
Often, people will find that they can save a lot of money by purchasing all of their life and health insurance policies from the same provider. This is because many insurance companies will readily reward loyalty. This also makes it a little bit easier for you to pay your insurance bill each month.
When you’re in the process of shopping for a new policy, talk to your existing provider to know more about their other offerings. You can usually request better rates just because you’re an existing customer, and that’ll help you save a lot of money in the long run.
5. Use Insurance Comparison Websites
Perhaps the ultimate tip for lowering your insurance rates is to compare insurance rates using insurance broker or web aggregator sites. Sites like this make purchasing insurance super easy and flexible.
Insurance rate comparison websites allow you to compare insurance rates from several different insurance companies at once. While there may be some benefit in going to insurance providers directly, there is even more benefit in using a website that lists multiple insurance providers. This includes:
- The ability to only have to enter your insurance requirements once, and receive offers from countless insurance providers. This saves a lot of time.
- The ability to quickly modify your insurance requirements to see how they impact resulting insurance rates from multiple providers.
- Having multiple providers on the same site that are in competition with one another. This incentivizes insurance companies to offer the best possible insurance rates to attract more clients.
Most of the tips for getting the best insurance rates will always come down to shopping around and getting a policy that is right for you. It’s probably going to take a bit of time to track down the perfect policy. However, if you do invest some time and effort into it, your bank account will be happier in the long run.