When people are trying to save money the first step they usually take is to eliminate anything they feel is an unnecessary expense. Unfortunately insurance policies, like renter’s insurance and life insurance, are the first to go when push comes to shove. Even if you understand the importance of your insurance policy and the premium is 50 dollars a month, if you don’t have that extra 50 dollars you have to make a cut.
However, most people simply let policies lapse out of financial frustration instead of looking at ways that they can save on their monthly premiums and keep the piece of mind that their policy provides.
But don’t think this is only for people who are facing dire straits. Anyone who is looking to save a bit of money each month should consider the following tips to see which ones can help them keep more money in their pocket.
How To Save On Insurance
- Shop around: It sounds simple but how many times do we buy something without comparison shopping first? Not to mention the fact that things may have changed since you last looked at the different policies competing agencies may have to offer.
- Pay your premiums all at once: It may be tough to do on a strict budget but if you can pay a year’s worth of premiums at once, or even at six month intervals, your insurance company will most likely give you a nice discount. Plus, that’s one less thing to include in your monthly budget.
- Be low risk: Insurance is all about risk. Ask your insurance company what you can do to put yourself in the lowest risk category available. Simply adding a deadbolt lock or keeping up to date fire extinguishers in your home may help you save some extra cash.
- Higher deductibles = lower premiums: By increasing the amount you are responsible for in the event of a claim will lower your monthly premiums but be careful. Don’t increase the deductible to a point that you will never be able to meet it on your budget.
- Reduce your insurance: Sometimes, less is better. Assess what you really need and make sure those items are covered leaving out the stuff that you can really get by without.
By doing a little extra homework when it comes to your insurance policies you can save a little extra money each month and avoid putting your back up against the wall and having to make tough decisions.
This is a guest post by Jeff Orloff. Jeff writes for the Renter’s Insurance Blog