Do you physically cringe when you see the amount you pay for insurance coverage every month? If you answered yes, then it’s time to think of ways to save money on insurance.
Whether you have auto, home, health, life, disability, or business coverage, or all of the above, you may be able to significantly lower your premiums and keep some of your hard-earned cash in your own pocket.
Here are ways to save money on insurance from Investopedia, one of the leading sources for financial news and information, to help you cut insurance costs:
- Shop around. Don’t commit to the first insurance company you get a quote from, no matter how persuasive the agents are, and no matter how much you dread shopping around. Consider other companies first and see if they can offer you a better deal.
- Raise your deductible. “A higher deductible lowers the amount an insurer is liable for and therefore can lower insurance premiums,” according to Investopedia.
- Use a single insurer. In other words, get all of your policies through the same insurance company. Many insurers offer discounts to customers who cover their home and multiple cars under one policy, for example.
- Avoid filing claims. “This point is easier said than done and it is the reason one needs insurance in the first place, but it basically boils down to avoiding smaller claims that are likely to raise your rates,” Investopedia suggests. “In other words, pay for smaller claims out of monthly expenses if you can.”
- Pay for insurance less often. Opt to pay your insurance premiums every six months or annually rather than monthly if you can. You’ll find that most insurers charge a bit extra for the convenience of monthly payments, but you can usually avoid that by paying your premiums in large chunks. Ask your insurance agent about your payment options.
While there are many other ways to save money on insurance—maintaining your vehicle properly and keeping fire extinguishers in your home, for example—the aforementioned tips are the easiest ways to save big bucks on your insurance costs.