by guest poster Insurance 2 comments
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Sick and tired of paying an arm and a leg for insurance? Learn how we were able to slash $1,000 with our insurance with these tactics!
The average American spends more than $2,000 each year for auto and home insuranceand nearly twice as much on health insurance. That breaks down to almost $500 everysingle month.
How to Save on Your Insurance
If you are tired of devoting such a large portion of your budget to insurancecosts, there are a few things that can be done to lower your premiums.
Using the tactics below, we were able to save more than $1,000/ year with our insurance!
Shop Around for the Best Deals
Insurance costs can vary wildly from provider to provider. It is important to shop aroundand compare rates every couple of years.
You could try contacting multiple companiesor one agent who sells insurance for multiple companies.
As you are calling for quotes,be sure to ask about any discounts you may be eligible for–not every agent will mentionthem during an initial quote.
I've included a contact list below of some of the big insurance companies to make it easier.
- 21st Century Insurance 1-877-310-5687
- Allstate Auto Insurance: 1-800-ALLSTATE (1-800-255-7828)
- Ameriprise1-888-554-6368
- Farmers1-800-FARMERS (1-800-327-6377)
- Geico 1-800-861-8380
- Liberty Mutual 1-800-837-5254
- Nationwide1-877-669-6877
- Progressive1-800-PROGRESSIVE (1-800-776-4737)
- State Farm1-800-440-0998
- USAA1-800-531-USAA (1-800-8722)
Bundle Your Policies
Purchasing multiple policies from the same insurer can help you save a significantamount of money.
Nearly every insurance company offers multi-policy discounts.Although discounts can vary from company to company, the national average is 10percent.
My bundled policy saves me 15 percent.
Raise Your Deductible
The amount of risk you are willing to assume can have a huge impact on your insurancepremiums.
No matter what type of insurance you buy, raising your deductible will loweryour monthly insurance costs.
Of course, you will be on the hook for the deductible ifsomething goes wrong.
But if you have an emergency fund, you can easily self-insureand get your investment to pay off in a year or two.
I recently saved $354 each year byraising my home insurance deductible from $250 to $1,000. Within two years, I willbegin making money on that small adjustment.
Seek Out Specialists for Your Insurance
Some insurance companies specialize in a particular type of insurance or a particulardemographic.
For example, if you are looking for mobile home insurance, you may dobetter with a company that specializes in mobile home insurance. The same is true of lifeinsurance or health insurance.
Specialist companies often employ underwriters that areable to fully examine the extent of your disease or hobbies.
This may help you get betterrates than you could get if you were simply lumped into one group.
Ask About Discounts
Discounts are available for every type of insurance.
You may be able to get a non-smokerdiscount, a professional discount, a student discount, a good credit or financial stabilitydiscount, renewal and loyalty discounts, and a myriad of other discounts if you simplyask for them.
Consider Group Insurance
There are a lot of different groups and associations that offer special insurance plans ordiscounts on various types of insurance.
You may already be a member of one of theseorganizations. If not, you could consider joining to reap the benefits.
The savings you areeligible for may easily cover the cost of membership fees.
Take a Defensive Driving Course
There are a lot of bad drivers on the road. Taking a defensive driving course will helpyou navigate the dangerous terrain. It can also help you save on your auto insurancepremiums.
Embrace Safety Features and Devices
Safety features, such as airbags, anti-lock brake systems, and anti-theft systems, canhelp you save money on your auto insurance.
Fire alarms, deadbolts, and burglar alarmscan help you save on your home insurance. You may already have one or more of thesethings. If not, they can be installed for a relatively low cost.
Don't Buy Too Much Insurance
Although you should never skimp on insurance, it pays to be conservative and reallythink about the type of coverage you need before purchasing a policy.
You don't needduplicate coverage–for example, a health insurance policy plus an auto insurance policywith health coverage.
You also don't want to spend an exorbitant amount of moneyinsuring a car or other items that aren't worth more than a couple of thousand dollars.
Insure these items, but do so conservatively.
Guest post from Bailey Harris, who writes about home owners insurance and other finance topicsfor www.homeownersinsurance.org.
