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Crucial Money-Saving Tips for Your Insurance Coverage
You’d be a fool not to save money where you can in today’s economy. It was only about a decade ago that the nation barely escaped what would have been a financial collapse worse than The Great Depression. Even if you are living comfortably, being frugal makes sense whenever and wherever you can, because you never know when your bubble might burst. You can insure all of your needs economically. Here are some tips on how to do so.
Cut Your Automobile Insurance Costs
You can employ a few different techniques to cut your automobile insurance costs. One method you’ll likely find recommended by a local insurance agency is to consider your cost-to-value ratio. In other words, if you’re driving a clunker with a bumper sticker on the rear fender that says, “Don’t laugh, it’s paid off,” yet you’re insuring it to the max, you’re wasting your money. The value of your insurance exceeds the value of your car, and you can reduce your policy premiums by reducing your policy coverage.
In the case of automobiles that have been paid off, you might do better to take out the minimum coverage required by the state to drive legally. Look at your car or truck’s blue book value, and then select coverage close to that. If the insurance company is likely to total your car rather than fix it, there’s no point in having a high-end policy. Make certain your liability and bodily injury amounts are acceptable, but skimp on the collision if you drive a clunker.
You can also save money on your automobile insurance if you increase your deductible. The more money you pay should you get into an accident the less money the insurance company has to pay and it will reward you with lower premiums as a result. Yes, the insurance is there to protect you in the event of an unforeseen incident, but this doesn’t mean it will like it. Carriers want to make money, not pay it out, so they’ll smile upon your higher deductible.
This approach only works if you have enough money saved to cover the deductible should you get into an accident, so make certain that you do. If you’ve stashed away a nice cushion for a rainy day and you’re a safe driver with an excellent driving record, talk with your insurance agent about upping your deductible to lower your premium. This will give you cash you need currently. Just stay safe on the road.
Other Cost-Cutting Measures
Another way to reduce your insurance coverage costs is to combine your policies. This works particularly well if you carry your own business and health insurance coverage. Even if you don’t, you will still save money on your premium payments if you combine your auto, home and life insurance with one company. As mentioned earlier, insurance is a business, and these companies are in it to make money. The more policies you hold through them, the more premium they make in the end, which is why they’ll offer discounts for combined coverage.
You can also save money if you pay your premium all at once. Many people prefer to make monthly payments on their insurance coverage, but did you know that you pay more annually by doing so? If you can pay your annual premiums in one lump sum, you will realize savings, as this locks you in with the insurance company for at least a year. It’s somewhat like how your cell phone plan works. You can also bi-annually or quarterly and many companies will reward you for that, too.
These are just a few tips on how you can save money and still have all the insurance protection you need. After all, a penny saved is a penny earned!
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