Save On Insurance Premiums With These Seven Tips
If you are looking to save on insurance premiums, you are not alone. Everything from car insurance to health insurance premiums can be very expensive. With that being said, there are ways you can save on insurance premiums. We discuss how you can go about finding discounts below.
Here are seven ways you can save on your insurance premiums today
1. Look into different ways you can pay your premiums
Your only option for paying your insurance premiums is not just on a monthly basis. Here are some ways you can save on your insurance premiums:
- Pay your premium in full: Being that insurance payments are processed on a monthly basis, companies will thank you for paying your premium ahead of time so they can avoid processing fees. You can pay it in full for the year or pay six months in one lump sum. You just have to make sure you are saving the needed amount each month so when the time comes to make that payment, you are ready for it.
- Set up autopay: Some insurance companies may give you a discount if you set up autopay or you go paperless with your bills. Setting up automatic payments will also help you avoid missing any payments.
2. Raise your deductible
Raising the deductibles on your policy is a quick way to save on your insurance premiums. This looks like a $2500 car repair that has a deductible of $500 means the $500 is what you have to pay and the insurance company picks up the rest. The lower your deductible is, the higher the risk the insurance company takes on since they will have to pay out that much more on your policy. You will see that come through in a higher premium. If you have an emergency fund set up, this might be a manageable risk for you to take on. Even if you boost up your deductible by $500, you will see savings.
3. Bundle your policies
If you own a home and a car, you may be able to bundle your policies to save on insurance premiums. If you have multiple cars, you can typically score a multi-car discount by putting them all on the same policy.
4. Take advantage of discounts
Insurance companies will often offer discounts for different things. You will need to ask your agent what is available but here are some discounts companies will typically offer:
- Good student discount
- Safe driver discount
- Low car mileage discount
- Discounts for vehicle safety features
- Military discount
- AARP discount
- University alumni discount
These are just some of the discounts, read here for more information.
5. See what coverage you don’t need
It is possible to have coverage your really don’t need. Do you drive a very old car that is not worth much? Taking off collision coverage may make sense. Go through your policy and see if anything can be done away with. In addition, there are often “riders” that some insurance reps will add onto your policy that you really don’t need. This could look like coverage for your landscaping on your homeowners insurance policy. Probably not something you truly need covered at the end of the day.
6. Stick with a reliable car over bells and whistles
Sure a new shiny car is nice but those come at a cost that is not just your monthly payment. You have the costs of maintaining the car like tires, oil changes etc. Depending on the make of the car, you can wind up paying more money than you realize for maintenance. This also means it will cost more to insure it too. Moreover, the more bells and whistles you have will not lead to savings in insurance discounts. Advanced safety features are nice but they cost a lot to repair which the insurance companies are not interested in. Going with an older vehicle can afford you a discount for different reasons. Check why here.
7. Compare insurance quotes
Not all insurance quotes are the same so it is vital to shop around if you want to get the best price. There are some great comparison websites that will help give you a clear picture of what savings you might be able to get. With that being said, make sure to research the insurance company before switching providers. Just because the insurance is cheaper does not mean it is a good fit for you.