8 Ways to Save on Insurance

Purchasing insurance is not an experience that leaves individuals feeling giddy or excited. In fact, it is one of the most dreaded purchases made. Nobody enjoys spending lot of money at one time! At least not on something they can’t take home and enjoy that very day. Most individuals consider it to be a waste. That’s because they never have to use it for its true value – financial protection after a life-changing disaster or incident.

Even though shopping for insurance isn’t fun, it is important that you do your homework before you make a decision. A lot of times consumers overspend because they don’t research ahead of time. Here are eight ways to save money on your insurance.

  1. No two insurers are the same.
It is important to understand and remember that every insurance company is unique. They have their own set of standards for insuring a house, car, or your life. Their pricing and coverage models vary significantly. It helps to work with a knowledgeable independent insurance agent that can guide you through the process and explain each company view on insurance.

  1. Request quotes from multiple carriers.
Don’t settle for one quote from your agent. Ask them to quote with multiple carriers and provide a comparison sheet that breaks down the important information. Comparing multiple carriers guarantees you won’t risk overpaying on the wrong insurance coverage.

  1. Choose a higher deductible.
Insurance companies offer discounts based on the deductible you choose. You purchase insurance to protect you against the unexpected. Often times, unexpected events are high in cost and rare in occurrence. It makes sense (if you can afford it) to pick a higher deductible. The amount you save in premium cost over five years is likely to equal the increase in deductible.

  1. Ask what discounts are available.
Every insurance carrier is different. Many offer special discounts for the customers like a home/auto discount, loyalty discounts, or even discounts for certain association memberships.

  1. Shop around the health insurance.
Don’t just purchase the company-provided health insurance plan because it’s convenient. They are quoted based on every participant’s health and age instead of your specifics. For younger or extremely healthy individuals, it makes sense to see what else is available.

  1. Review your coverage yearly.
Stop letting your insurance auto-renew. Schedule a time to meet with your agent before renewal to review your existing coverage and options. This keeps you from insuring items that you no longer have and makes sure your agent is actively looking out for your best interests.

  1. Purchase what you need.
Review your current situation to identify what types of insurance you need to have in place. Home, renters, auto, and life are common insurance policies. Other insurance policies to consider include business or umbrella insurance. Making an investment today can save you thousands later, but there is no value in over purchasing either. Ask your insurance agent to explain the benefits and downfall to each option.

  1. Make home improvements.
Home improvements like installing a security system, updating a roof, or updating plumbing and wiring can save you money on your insurance. Most companies consider these to be improvements in their best interest because they make your home a safer place by decreasing the risk from outdated installations.

Buying insurance is typically not enjoyable because it is confusing and expensive. Find an independent agent that guides you through the confusion and use these eight techniques to save money.