How to Reduce your Insurance Premiums
Whether it is auto, life, homeowners, or health insurance, almost every single person has some type of insurance policy. Because insurance is a necessary expense that is a standard part of our monthly expenses, it makes sense to find ways to try and lower our insurance premiums. If you have one or multiple insurance policies, below are a number of tips you should consider when trying to reduce your insurance premiums:
1. Comparison Shop:
One of the best ways to lower your insurance premiums is to comparison shop for a policy. It is essential to get at least 3 different car insurance quotes from 3 different insurance providers. The easiest and fastest way to get several insurance quotes is to use a free search insurance quote tool which can be found on insurance information sites and insurance company websites. This free tool allows users to enter pertinent information about their circumstances and then click the submit button. In a matter of seconds, they will receive several insurance quotes from different insurance companies. Users can then review the quote offers and choose the best policy that meets their needs. Savings can be in the hundreds of dollars if you do your research and really shop around.
2. Pay a Higher Deductible:
An insurance deductible is the amount you agree to pay out-of pocket if you have to make a claim. This can be $200, $500, or $1000. The more you agree to pay, the less you will pay for your insurance premium each and every month. However, it is essential that you have the cash available in the event you make a claim.
3. Avoid Excess Coverage:
It is a fact that the more coverage you purchase, the more you will pay on your premium. You can reduce your costs by eliminating unnecessary coverage. For instance, if you are looking for car insurance and you only have an older car valued at $2000, you may want to drop collision coverage because collision only compensates for the actual value of the car.
4. Multiple policies Under One Insurer:
If you combine a number of policies in one insurance package under one insurance provider, you will save money, in some cases as much as 10%. For instance, many insurance companies will offer homeowners and car insurance under one policy at a discount price. There are even insurance companies that will insure multiple cars under one policy. As well, most insurance companies will offer a discount if you pay your annual premium up front.
5. Add Safety and Security Features:
Most insurance providers will provide discounts on policies if policyholders take measures to reduce their chances of making a claim. For instance, auto insurance providers will provide discounts to users who install anti-theft devices and air bags in their cars and have completed a safety driving program. Also, health and life insurance providers will provide discounts for people who maintain good health such as not smoking, eating healthy and keeping fit through exercising.
Today, with so many insurance companies competing for your business, there is no reason why you can’t find affordable insurance. With a little knowledge and research, you can take important step to drastically reduce your insurance premiums. In today’s gloomy economy, we can all use a little extra cash in our pockets.