Insurance is something you should have nowadays, though it’s never really something you are excited to pay for. After all, you pay for it as a precaution for just-in-case situations.
When you purchase an insurance policy through a new provider, you are typically given a competitive rate as a way to earn your business. However, after a couple of years, that rate starts to increase. It is best to shop around every couple of years for a new insurance provider. Liann and I have contacted a few different providers to research more affordable rates and policies that would better suit our needs.
Drop Excess Insurance Coverage
Insurance plans can include some coverage options that could be considered “excessive”. For example, our last home insurance policy covered lost/damaged electronics. We personally don’t have expensive enough electronics to benefit from this, so we dropped this option to save on our premium.
Opt for Higher Deductibles
The lower the deductible, the higher the cost of the insurance. Increase the deductible amount to lower your insurance cost.
Reduce the Number of Insurance Claims
Filing an insurance claim will typically result in an increase in your insurance costs. If you can afford not to file an insurance claim, then pay out-of-pocket. Ideally, you would only file a claim when it is too costly to pay out-of-pocket.
Pay in Full or On Time
Paying for your insurance policy in full can potentially save money on processing fees. If you choose to do a payment plan, then you should pay each installment on time. Late payments will result in increased insurance rates.
Liann and I have used these tips to help keep our insurances costs down. In negotiating with companies, bundling policies, and asking for discounts, we managed to save nearly 20% on our home and car insurance policies!
Have you negotiated with your insurance provider this year? Let us know how much you have saved!