Insurance is one of those items that everyone needs. Insurance provides protection against a loss, accident, or theft. Failing to have an insurance can wipe out all of the assets that you have worked so hard to save. That is why it is so important for everyone to have the right insurance an coverage amounts. You want to make sure that you, your family, and your assets are protected in the event of catastrophe. It is a whole lot easier to sleep at night when you know that all of your possessions are protected.
The types of insurance that every person should have are life insurance, health insurance, homeowner’s insurance, and automobile insurance. These policies can be purchased at different insurance companies or all be bought at the same place. If you want to avoid paying an arm and a leg for insurance, there are some things that you can do. A little financial planning can go a long way towards keeping more money in your pocket. Use these tips to save on insurance.
Lower your car insurance deductible
One of the first things that you can do is increase your deductible. Increasing the deductible on your insurance will decrease your monthly insurance bill. Car insurance and home insurance policies normally place your deductible as low as $250. While a low deductible means that you pay less out of pocket for accidents, it also means higher monthly payments. Insure.com estimates that raising your deductible to $500 will save you 12% and to $1,000 will save you 24% A good rule of thumb is to keep your deductible at $1,000. If you have a well funded emergency savings account, you should be able to cover any small accidents under $1,000. Besides when your insurance company pays a claim, your monthly rates are likely to increase as well. Do you really want to pay higher premiums for a $300 incident?
Consolidate your policies
Another thing that you can do is buy all of your insurances from the same place. Forget about buying insurance from a bunch of different brokers. Get your home, auto, and life insurance policies from one company. Loyalty is rewarded in the insurance industry. Insurance companies offer breaks to loyal customers that buy multiple products from them. You could save 10 to 25% off of your premium payments by consolidating your policies. It makes for easier bookkeeping as well since you only have to send one check off.
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