Everyone wants to save money, and you’re no exception. Luckily, there are lots of ways to reduce your spending without having to give up the things that make you happy or compromise your ability to handle an emergency.
Whether it’s eating at home more, finding cheaper car insurance rates or getting more energy efficient appliances, these 7 tips on how to save money for insurance will help you bring down your expenses without compromising the quality of your life.
1) Review your coverage annually
Review your coverage annually. If you’ve had a change in your life, it’s important to make sure that you have the appropriate insurance coverage.
Your plan may not cover a new baby or if you are no longer living with a spouse. Reviewing your coverage annually is the best way to make sure that you’re getting the most out of your policy and aren’t paying more than necessary.
For example, if you only need home and car coverage, but also carry life insurance, you might want to remove one of those policies.
2) Raise your deductible
Raising your deductible is one of the best ways to save money for insurance. Your deductible is the amount you have to pay out of pocket before your insurance kicks in, so if you’re prepared and can afford it, a higher deductible will help save money on premiums.
It’s not always easy to get this number just right, but here are some guidelines:
✓) If you are young and healthy and want basic coverage, consider going with a $500 or even $1,000 deductible.
✓) If you are older with more health problems or dependents that require more care, consider raising your deductible up to $3,000 or even $6,000.
3) Don’t file small claims
It can be tempting to skip the hassle of filing a small insurance claim, but there are many benefits that come with filing.
For example, if you don’t file your claim and end up getting in an accident again, you may have your premiums raised or the company may refuse coverage. In some cases, it’s possible that the company will cancel your policy outright.
And even if you do file a claim, it doesn’t mean you’ll get reimbursed right away. The process could take months or years.
Your insurer might not pay anything until they’ve gone through every detail of your claim. If they find any errors on your part, they could void the entire settlement as well. You want to avoid all this by just submitting a simple claim when necessary.
4) Take advantage of discounts
One of the best ways to save money for Insurances is by taking advantage of discounts.
Many insurance companies offer a variety of discounts, such as those for good grades, being an organ donor, having a safe driving record, or being married.
Check with your current insurer to see if they offer any discounts or ask about other providers that do. If you are looking to switch insurance providers, find out what types of discounts they offer and use this information when shopping around.
5) Use public transportation
When you have a car, you’re expected to have car insurance. That doesn’t mean that you have to own a car in order to have it, though.
It’s possible to save money on insurance by using public transportation instead of driving your own vehicle when possible.
When you use the bus or train, there are no parking fees and the cost of gas is saved as well.
If you need a car occasionally, this may be the best way to go.
Sell old items
Take inventory of what needs to be sold from around your house and garage. You’ll likely find things like clothes, toys, books, electronics and more.
You can set up an eBay account to sell these items online which means they won’t take up any space in your home while they’re waiting to sell! ( The trickiest part about selling is taking great photos and making good descriptions, but once you know how, it’s easy!) Refinancing your student loans might make sense if you feel like interest rates are too high and aren’t worth the hassle.
6) Drive less
One of the easiest ways you can save money on insurance is by driving less. If you have a 10 mile commute and your insurance is $200 a month, it will cost you about $4,000 over the course of a year.
That’s an entire summer vacation in Europe! But if you carpool with someone else who lives in your area and has the same commute, it’ll only cost each of you $500.
Driving less doesn’t just mean being conscious when you’re behind the wheel; it also means getting rid of any excess weight in your vehicle that isn’t necessary for day-to-day use.
A lighter load will make your engine work less and save gas. Consider removing anything that isn’t needed: don’t carry unnecessary cargo or passengers, keep the roof rack empty, and get a lighter tire set up .
7) Bundle your policies
One way to save money on insurance is by bundling your policies. Say you have a car and a home, get both insured through the same company.
There are several reasons for doing so including knowing how much coverage is needed and calculating your true replacement value in case of theft or damage.
Keep your property records up-to-date: Sometimes when people move they forget to update their address with their various service providers.
If you don’t want any surprises come renewal time, make sure everything is up-to-date with things like credit cards and insurance providers.
Bundle your policies (again): As stated above, another great way to save on insurance costs is by bundling them together. It’s important to note that if you’re buying new cars, homeowners or renters coverage should be bundled into one policy.