Minimizing Insurance Premiums

If you don’t pay attention to your insurance policy, premiums can cost a lot more money than necessary. You can cut back considerably on your premiums for health insurance, car insurance, renters insurance, and other insurance policies. Here are a few worthwhile tips that are easy to do. The more tips you follow, the more money you will save.

Combine your policies.

If you have renters or homeowners insurance and car insurance, set up the policies with the same insurance company. Many companies will give you up to 10% off each policy if keep them together.

Raise your deductible.

The deductible is the amount you pay out-of-pocket. For example, if your deductible is set at $500 and you make a claim for $1,000, you will be expected to pay the first $500 and your company will give you a check for the second $500. When you raise your deductible, your premiums will go down because the insurance company won’t have to pay as much if you make a claim. Set it as high as you can afford. Keep money in the bank to pay for your deductible to avoid payment problems in the future if you need to make a claim.

If you can’t get health insurance through an employer and you need to purchase it on your own, high deductible insurance will allow you to pay much lower premiums. If you have an income below a certain amount, you may be able to set up a Health Savings Account to supplement your out-of-pocket expenses.

If you have the money to do so, pay all at once. Most insurance companies allow you to set up your payments on a monthly basis. However, paying for them all at once, either for the year or for 6 months, will often allow you to get a discount and pay less.

Ask for discounts.

Discounts are a great way to save money on insurance premiums. Check the website of your insurance provider and ask your agent about what discounts are available. Car insurance companies often have many discounts available such as safe driving discounts, safe vehicle discounts, and discounts for senior citizens and students.

Lowering your premiums requires some effort on your part. You must talk with your agent to ensure you are getting the lowest rates possible. Lower premiums mean saving money over the life of your policy, and not just for the first month of payments. The more you save over time, the more you save altogether.


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