7 Practical Ways to Save on Insurance

February 20, 2018


Peace of mind is one of the priceless benefits of being covered by insurance. However, that doesn’t mean that you should spend lavishly on insurance policies. Buying insurance is primarily being practical. Don’t deny that by spending excessively for this risk-management tool.


Insurance is there to help you secure the future and not to rob you of your hard-earned cash. To get the most out of your insurance policies without messing up your finances, consider these practical ways:


Do your homework

It is essential that you do your research before you purchase any insurance plan. Doing so will ensure that you’re getting from a reputable provider. Shopping around will also give you the rate most suited to your needs. If you neglect this step and rely solely on what the agent or company tells you, there’s a high tendency that you’ll overspend on premiums.


Avoid paying for commissions

An agent can be knowledgeable about the different insurance policies and may answer any questions you may have, however, acquiring a policy from them means that you have to pay more because of commissions. Commissions are typically incorporated into your premiums. If you want to lessen the cost of your policy, consider buying directly from the company.


Purchase from one company only

Life, health, long term care, home and auto insurance are the policies that are necessary to have. If you want to get covered in all these areas without going overboard on premiums, consider acquiring all these policies from a sole insurer. Big companies typically offer different ranges of insurance plans, so it’s best to buy from them.


Typically, providers give discounts if you buy multiple insurance policies from them. That can be advantageous to your finances. Furthermore, buying from one company will also make it easier for you to keep track of your policies.


Go for a higher deductible

Increasing your deductible is parallel to lowering your premiums. Typically, a deductible amount is at $250. If you want to lessen the cost of your policy, you can make it go notches higher. For instance, a deductible raised to $1,000 can increase your savings by 15-20% per year. However, remember to raise your deductible only to what your finances can actually handle.


Make claims only when necessary

Filing for claims for every inconvenience you face is a no-no if you want to save on insurance. For instance, it is not smart to file a claim each time your car gets a small dent or scratch. If you do this, your annual premiums can increase. The reason why you applied for insurance in the first place is to get covered against huge impacts of untimely incidents on your finances and not for small inconveniences that you can, in fact, pay for.


Be smart in choosing your mode of payment

Insurance policies can be paid every month, every six months or every year. Paying on a monthly basis can be convenient, but it can cost higher due to surcharges. Paying every six months or annually means you’ll shell out a higher amount on a one-time payment, yet it can yield savings as you will no longer pay for “convenience” as opposed to paying monthly.


Take care of what’s being insured

Being covered by insurance doesn’t give you a free ticket to abuse your health and your properties. In fact, if you want to lessen your insurance costs, it’s best that you properly maintain that things that are being covered by your policy. That can include your health and assets such as your home and car.


Leave a Reply

Your email address will not be published. Required fields are marked *