Insurance protects you against unexpected catastrophes that are not likely to happen, it is to guard you against financial hardships should they occur. When you have insurance, you will pay a certain amount of money (a premium) monthly or yearly. The money you pay toward the premium is set to be used to pay clients if there is a claim filed. When a loss occurs you file a claim with the company and they pay you.
Save On Insurance: Have The Right Amount
Having the right amount of insurance coverage is important. You are wasting money if you have insurance that is too much coverage. If you don’t have enough then you may leave family and loved ones in a devastating spot of you pass away. There are many kinds of insurance. Some of the most common are:
- Medical Insurance
- Life Insurance
- Home Insurance
- Auto Insurance
If you want to provide yourself with the best situation, you need to learn how to self-insure. Self-insurance helps you understand how to set aside money to cover any emergencies or unexpected hardships that may come along. Put this money in a place where you won’t use it, yet in a place where you can access it if necessary. A savings or money market account would work.
Raise Your Deductible
Another way to save money is to raise your deductibles on your insurance policies. Your deductible is the amount of money you have to pay from your own pocket for a claim. For example, if you were in a car accident and it costs 800 dollars to fix your car. If your deductible is 500 dollars, then that is what you pay towards fixing your car and the insurance company pays the rest. If you have a high deductible then your monthly or yearly fee is less.
You can also save money by consolidating your insurance. Get your car and home on the same insurance. Companies offer lower prices for doing this.
It is important to shop around. Rates change often. Visit an online site. An insurance company which was the cheapest one year will be higher the next. Don’t be afraid to change companies. Older people tend to be set in their ways and reluctant to change insurance companies. Life changes and you may be paying for things that no longer matter. Your car gets older and may not need as much coverage.
Care About Your Health
Another thing you can do is to take care of the things you have insurance on. For yourself: get a routine check up on your health. Exercise and eat right. Stay away from dangerous things as much as possible. For your car: Keep it serviced. Check the tires and oil and repair when needed. For your home: Fix leaks and broken floorboards. Keep the home as safe as possible. Put on a new roof and keep it painted. These things are cheaper than having to replace your car and your home, and your life cannot be replaced.
Review of the best ways to save on insurance tips:
- Have the right amount of insurance
- Self Insure
- Raise your deductible
- Shop around
- Take care of what you insure
These are some of our tips to help you save on insurance. Do you have any other money saving tips you would like to share? Put your tips in the comments and help expand on the topic. See our other posts for other great tips.