For most people, certain types of insurance are a non-negotiable monthly payment. From avoiding costly car repairs and medical expenses to obtaining a mortgage, insurance has major benefits. Having peace of mind knowing that your assets or loved ones are covered against potential losses is key to a comfortable lifestyle in this day and age.
But with all the different types of insurance that you can obtain today, the cost of having that peace of mind can quickly become difficult to afford. This is especially apparent when you’re faced with a dizzying array of options for each policy.
To help you get the most out of your premiums, here are 6 ways to pay less for insurance.
1. The Three-Quote Rule
When shopping for any type of insurance, try obtaining at least three different quotes. While you can use an independent insurance agent, it’s worth noting that they charge a commission that will impact the price of your premiums. Your best bet would be to do some independent searching and use websites that list the best insurers.
2. Save on Life Insurance
Of course, the cost of life insurance will stay with you for as long as you’re around, which is why you should prioritize it when saving on premiums. Additionally, insurance companies are always changing their terms and plans to stay competitive, so it’s likely that you can find a better insurer, especially if you haven’t shopped around for a while.
This Insurance Geek post details the best life insurance companies of 2019. Their in-depth analysis details how you can choose the top carrier for different categories. This includes term, whole and universal life insurance companies, as well as the highest rated companies and the best no exam life insurance companies.
3. Stick to a Single Insurer
By using a single insurer to cover multiple policies, just as when insuring more than one car, you can usually benefit from discounted premiums. Insurers are willing to provide discounts when you take out multiple policies with them because the reduced amount of admin work makes additional policies less costly to take out.
4. Increase Your Deductible
A deductible is a tax-deductible expense that is subtracted from your gross income. They reduce your taxable income, thus lowering your tax liability.
Increasing your deductible lowers the amount your insurer is liable for, which allows them to lower your premiums. For instance, raising your deductible from $250 to $1000 will save you between 15% and 20% per year.
5. Avoid Smaller Claims
When you find yourself in a situation that calls for a claim, consider the alternatives before filing the claim. This is especially true for smaller claims which can otherwise raise your rates. In other words, pay your smaller claims out of monthly expenses where possible.
6. Reduce How Often You Pay
While they’re the most popular option, monthly payments are usually more expensive as insurers charge extra for convenience. Try paying every six months to lower your premiums.
You can save a great deal on your insurance premiums by simply paying attention to your policies. Run through them every few months and see where you’re paying too much.
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