Insurance is a fact. If you have a car, you need insurance. At the moment, the law requires most people to have health insurance. You need insurance if you have a house, and even if you rent a house, you still need insurance to protect your property. All these insurance costs can really add up, so you have to do your best to keep them as low as possible. Here are some tips you can follow to keep your insurance costs low.
It may sound crazy, but not everyone does. And even people who say they went to the insurance company may not be doing so well. For life, home and car insurance policies, you should get at least three quotes, and these quotes should come from different sources. For example, you should get at least one quote from a brick insurance agent and another from an online comparison site.
Packaging your policy
If you get car insurance from one company, home insurance from another company and life insurance from another company, you probably pay too much. Insurance companies usually offer discounts on multiple policies that can save you 10% or more of the premiums on each policy.
Take advantage of groups
The main reason why your employer’s health insurance is cheaper than an individual policy is because your employer offers the insurer a large pool of jobseekers between which you can share the risk. You can take advantage of group discounts on all types of insurance, depending on your profession, religion and social groupings. Insurance companies often sell to churches, trade associations, charities, etc. by offering discounts to members who are not available to the general public.
Improve your risk profile
There are things about yourself you can’t change. If you’re a man, you pay more for car insurance than a woman with a similar profile. But there are a lot of things you can change that lower insurance premiums. For example, quitting smoking can give you a discount on health and life insurance. By replacing your sports car with a minivan, you can take a break from car insurance. Creating a home security system can offer a discount on the insurance for homeowners.
Taking a higher risk
The price of the insurance refers to the risk that the insurer will have to pay. This means that the higher the risk you bear with the insurer, the lower your rates will be. How can this happen? One of the easiest ways is to accept a higher deductible, which means that in case of a claim you pay a higher amount out of your own pocket. For some types of insurance you can exclude cover for certain things in order to save money. For example, you may have liability and collision insurance on your car, but you do not have full coverage. You can also exclude certain moral principles relating to death from your life insurance.
How much you ultimately save on life insurance depends largely on your life situation and the cover you need. However, there are many ways to save money, and you throw money away if you don’t use it.